By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Dangote Flour Mills Plc (DFM) on Wednesday posted a loss of N6.109 billion to N7.217 billion the previous year, the flour miller said in a filing with the Nigerian Stock Exchange.
Audited results for the period ended September 30, 2014 shows that profit before tax also was negative as the company moved from a loss of N8.342 billion in 2013 to N9.285 billion in the review period of 2014.
However, the flour miller reported revenue growth of 37.7 percent to N41.269 billion from N29.960 billion recorded the corresponding year.
Similarly, gross profit increased 272.9 percent to N2.396 billion from N642.6 million reported last year.
DFM reported its basic and diluted earnings dropped 21.6 percent to N124.40 from N158.66 in 2013.
The company reacting to the result said the business recovered from a poor first quarter and recorded a 15 percent topline growth in the last quarter over the corresponding period of 2013.
It affirmed procurement efficiencies, improved flour extraction and other cost efficiency measures led to substantially improved margins as compared to 2013.
“Whilst these results reflect the difficult and competitive trading environment in which the business operates, many actions have been taken to address the challenges faced by the company,” DFM added.
“During the year, the company conducted a review of the carrying value of its assets and based on current market realities, has decided to impair certain of its manufacturing assets.
“The 2014 group results include an impairment of N1.592 billion, being the carrying value of surplus assets the business is unlikely to use in the foreseeable future,” it added.
Controlling shareholder in DFM, South African Tiger Brands Ltd said on Wednesday it full-year profit ended September 30, dipped 22 percent to 2.02 billion rand ($183 million) from N2.58 billion reported last year due largely to impairments relating to the group’s investment in Dangote Flour Mills.
The South African consumer goods maker said it has written off $9.5 million (105 million rands) following a review of the utilisation level of certain assets of DFM, according to a statement from the company.
