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Dangote Flour Mills improved in profits

Dangote Flour Mills Plc latest results have showed recovery in profitability amidst hike in cost of sales and foreign exchange losses. The flour milling company increased its revenue and effectively managed its operating expenses for the period under review.

On the heels of unrest in the North Eastern part of the country, devaluation of Naira by the Central Bank of Nigeria (CBN), coupled with the weak purchasing power of consumers, Dangote Flour Mills had an inspiring year wherein major financial parameters showed recovery from prior year losses.
Audited report and accounts of Dangote Flour Mills for the year ended September 30, 2016 shown 62.6 per cent growth in revenue while profit after tax migrated from a loss position of N12.7 billion in 2015 to N5 billion in 2016.
The company for the period recorded the hike in cost of sales attributable to increased cost of flour materials, among others. Consequently, the company’s cost of sales/revenue rose from 90.7per cent in 2015 to 74 per cent in 2016 From the financial position of the company, Dangote Flour Mills recorded 9.7 per cent growth in short-term liabilities to N54.77 billion, to reduce its working capital to negative position of N11 billion in 2016 from negative position of N28.4 billion in 2015.

Source: Miller Magazine