Dangote Flour Mills Plc has announced a loss after tax of N6.11billion for the year ended September 30, 2014.
This represents15.3 per cent decrease over N7.22 billion loss recorded in the corresponding period in 2013. Also, its cost of sales escalated by 32.6 percent to N38.87 billion from N29.32 billion posted in the same period in 2013. However, the company posted a growth a 37.7 per cent growth in revenue to N41.27 billion during the period as against N29.96 billion recorded in the corresponding period in 2013. The result released on the Nigerian Stock Exchange, NSE, showed that its income tax expense rose to N3.01 billion in comparison to N1.58 billion expended in the same period in 2013, representing 90.5 per cent increase.
The company said in an accompanying note that while the performance for the full year 2014 was disappointing, there was a gradual and sustained improvement quarter by quarter, saying that 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.
“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.
The actions taken have resulted in a progressive improvement in the trading loss (excluding once-off items and exchange rate gains) over the four quarters from N1.415 billion in Q1.