Dangote Flour Mills declares N46.9b turnover in third quarter
Presenting the report to the council of Nigerian Stock Exchange (NSE) recently, Dangote Flour Mills explained that turnover also increased from N34 billion to N46.9 billion.
Management of the company added that Dangote’s share capital stood at N2.5 billion while share premium maintained its position at N11.8 billion.
The company added that revenue reserve went up from N9.44 billion to N17.16 billion, and net assets grew from N23.7 billion to N31.5 billion.
Dangote Flour Mill recently, announced a turnover of N47.9 billion for the year ended December 31, 2008 against N42.2 billion in 2007.
Profit after tax, according to the company, also increased from N675.7 million to N2.99 billion coupled with the unveiling of more production outlets.
Based on the performance, shareholders of the company approved the payment of 20 kobo dividend per ordinary share of 50 kobo.
Chairman of the company, Alhaji Aliko Dangote, in his speech during the yearly general meeting explained that the company within the period sustained profitability, expand its market share, efficiency and improved customer services, adding that the performance has laid the foundation for strong growth in the years ahead.
He also stated that the company is currently expanding its production capacities to 7,300 metric tonnes from 4,800 metric tonnes per day in Apapa, Ilorin and Calabar factories respectively, pointing out that the expansion would add to the bottom line when completed.
Dangote said global financial meltdown is showing signs of easing while prices are itching up with the prizes of wheat stabilising.
He added that the development is expected to translate to increased purchasing power in the local economy and also facilitate ability to manage material cost better.
“We are using the opportunity provided provided by the improved prospect to expand the business. Our Noodles factories in Ikorodu, Kano and Calabar were all commissioned in 2009
“Further, expansion of our production capacities in our factories in Apapa, Calabar and Ilorin is ongoing. The plan is to expand the current 4,800 metric tons of milling capacity per day to 7,300 metric tones” said Dangote.
Making reference to the international business environment and its impact on Nigeria and specifically Dangote Flour, he said the growth in inflation is attributed to higher food prices.
“The current global financial crisis which has reduced availability of offshore funds to finance import makes sourcing for imported raw material and spares not only challenging but more expensive as cost of fund has been rising in the global market.
“In some cases, local banks are experiencing outright cancellation of foreign currency lines hitherto being enjoyed prior to the crisis.
“Aside the above challenge, the Federal Government official date confirms inflation rate at about 14 per cent. The growth in inflation is attributed to higher food prices. Food price pressure has become a global phenomenon because some commodities such as haet, sugar, and corn being in production of ethanol have created strong demand for bio-fuel. Bio-fuel is being used in most of the advanced economies as a supplement to transportation fuels.
“The implication of this again is that the international prices of this category of commodities would further be propelled because the of possible greater demand for them” Dangote added.