Fidelity bank banner Bayelsa State banner
Dangote Flour finally returns to profitability

By News Express on 18/04/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,035

•Dangote Flour Chairman Asue Ighodalo.
•Dangote Flour Chairman Asue Ighodalo.

Nigeria’s Dangote Flour Mills, which failed to make a profit under Tiger Brands’ control, has reported a 10.6-billion naira (R445m) after-tax profit for the 15 months to December 2016.

After four successive years of losses, Tiger Brands sold the Nigerian-based consumer products’ company back to Aliko Dangote for $1 in December 2015. At the time Dangote, who is Africa’s richest man, undertook to inject 10-billion naira to revitalise the loss-making company.

On Thursday, the company said the profit hike was driven by a more than doubling of revenue to 105.8-billion naira compared with 48-billion naira in 2015. During the review period there was a sharp increase in sales of flour, noodles, spaghetti and other pasta products.

The 10.6-billion naira after-tax profit represented an improvement on the 12.5-billion naira loss notched up in the 12 months to December 2015.

“Since the takeover, we have taken a lot of steps to reposition the company through expansion to drive growth,” Dangote chairman Asue Ighodalo said.

He said that as a result of the repositioning Dangote was “stronger, better, sophisticated and more focused”.

CEO Thabo Mabe, who was also CEO during the Tiger Brands era, attributed the return to profitability to strategies adopted by the company to increase market share and create value for shareholders.

In November 2015, in a bid to limit its losses, Tiger Brands said it was withdrawing funding from the unprofitable Nigerian business. A few weeks later SA’s largest food producer said it had agreed to sell its controlling 63% stake back to Dangote for $1.

The R1.5bn acquisition in 2012 was intended to boost Tiger Brands’ growth prospects outside SA, where it was a dominant player in many markets. Tiger Brands also assumed R1.5bn in debt. It was the group’s third acquisition in Nigeria and the largest outside SA.

Fuelled by high oil prices, Nigeria had become the continent’s richest economy. But things turned bad almost immediately in what proved to be an extremely competitive market with considerable surplus capacity. The collapse in the oil price put paid to hopes of short-term recovery following extensive and costly interventions by Tiger Brands.

By the end of 2015, Tiger Brands had notched up impairments and writedowns of almost R3bn. The acquisition not only soaked up financial resources but also management, which struggled to turn the business to account. The Nigerian problems were also hitting the Tiger Brands rating. At the end of 2015, Tiger Brands CEO Peter Matlare, who had driven the Nigerian plans, resigned.

Source News Express

Posted 18/04/2017 8:26:08 PM


Share on facebook Yahoo mail icon Gmail icon Share on Google+




You may also like...
Jonathan’s wife told to apologise for Okrika attack,...

Med-View Airline expands, raises capital

Anambra Catholic Bishop accused of property grabbing, threat...

Fake certificate accusation at Tourism Corporation is false:...

Kwara Governor elevates 8 traditional rulers to First...

Sympathisers besiege Tinubu’s house over son’s death

Man City humble Stoke as Chelsea, Arsenal fall...

FEC approves draft proposal of 2018 Budget

Lagos spends N10bn on rehabilitation of public schools;...

Redeemed Church bans offerings from sinners

Abia pledges to UN-sponsored training of youths on...

Online campaign to bring back abducted Nigerian schoolgirls...


Latest News BREAKING NEWS: INEC declares Osun governorship election inconclusive Osun governorship election: All the results while waiting for INEC's official declaration 2019: Screening Panel to decide fate of Atiku, Saraki, Tambuwal, others Certificate Saga: Uncertainty, fears grip Buhari’s ministers, aides Ambode’s fate hangs in the balance as party insists on primary Osun Guber: PDP beats Aregbesola in Ijeshaland Missing General: Army recovers bus door Ban of Ohanaeze causes stir APC, PDP devise new method on vote-buying Activities pick up in Delta State IDP Camp; Asaba Camp records first birth Nigeria Air fiasco: Foreign investors, international community won’t take Nigeria serious again — Peter Obi Lagos sues for peace over hijab controversy


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (396,237 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (376,654 views) Shameless Genevieve Nnaji exposes breasts in public (308,365 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (250,531 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (232,229 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (221,606 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (199,997 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (181,596 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (165,649 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (163,350 views) Lagos plane crash: Journalist releases victims’ names (158,114 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (146,868 views)


Categories Advertorials (3) African Press Organisation (81) Art & Literature (63) Business & Economy (3,622) Business Verdict (52) Columnists (933) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (547) Features (652) Global Business Monitor (301) International (2,426) Interview (165) Live Commentary (28) Love Matters (144) News (39,071) Opinion (1,110) Pidgin (11) Politics (6,705) Religion (872) Sports (1,701) Stock Watch (34) AMA & Al Jazeera Global Update


CBN banner

Firstmobile banner




I am Imo State's New Governor -- Okorocha's son-in-law Uche Nwosu...


APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera