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Dangote Flour declares N54.26bn turnover in third quarter

Peter Egwuatu

Dangote Flour Mills has declared a turnover of N54.26 billion for the nine months ended September 30, 2010, representing an increase of 15 per cent from N47.03 recorded in the corresponding period of 2009.

According to the result released on the Nigerian Stock Exchange (NSE), Dangote Flour Mills Group third quarter results indicated that gross profit rose by 20 per cent from N10.19 billion as at 2009 to N12.18 billion in the review period.

Operating profit was also on the upward swing increasing from N7.75 billion to N8.23 billion, while profit before tax (PBT) was up by 25 per cent, from N5.67 billion to N7.10 billion. Profit after tax rose by the same 25 percent from N5.59 billion to N6.96 billion. Earnings per share for the flour group grew from 112 kobo to 139 kobo.

The Dangote Flour Mills Group include: Dangote Flour, Dangote Pasta, Dangote Noodles and Dangote Agrosacks Limited.
Turnover for Dangote Flour (as an entity) in the review period, rose from N32.16 billion to N35.30 billion, representing an increase of 10 percent. Gross profit rose from N6.95 billion to N8.37 billion indicating an increase of 20 percent, while operating profit recorded a 21 percent increase from N5.77 billion to N6.96 billion.

Profit before tax (PBT) increased by 48 percent, from N4.03 billion to N5.97 billion, while profit after tax surged by the same 40 per cent, from N3.95 billion to N5.85 billion. Earnings per share for the flour mill hit 117 kobo compared to 79 kobo at the corresponding period in 2009.

Companies under the Dangote Group are noted for posting sterling results which have endeared them to shareholders as good results translates to good dividends. The four companies under the group and quoted on the Nigerian Stock Exchange(NSE), paid a total of N60.21 billion as dividend this year even as many quoted companies could not pay dividend due to the harsh operating environment.
Dangote Cement last week paid an interim dividend of N30.98 billion for the period ended September 30, 2010. The interim dividend is part of the group’s strategies of enhancing and growing shareholders’ value through consistent dividend payment.

The interim dividend also fulfills the promise by the directors of the company to pay an interim dividend to shareholders. Dangote Cement resulted from the merger between Dangote Cement Plc and Benue Cement Company Plc (BCC). The merger created the biggest company listed on the NSE.

According to the annual reports and accounts of the listed companies, Dangote Sugar Refinery paid a dividend of N12 billion, which translates into N1 per share, while legacy BCC paid N3.9 billion, which also translates into a dividend of N1 per share.


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