By Peter Egwuatu
As part of strategies to ensure that consumers have more access to its products, Dangote Flour Mills is to flood the market with its wheat meal brand, alkama. The move is to create more market share for the wheat meal which has made name in some parts of the country.

According to Alhaji Aliko Dangote, Chairman, Dangote Flour Mills, the company will also introduce retail packs for flour and Danvita while striving to achieve 7,300 metric tons per day. He stated while addressing shareholders at the company’s annual general meeting for the year ended December 31, 2009 held in Kano, recently.

The shareholders also approved the sum of N2.5 billion as dividend translating to a final dividend of   50 kobo per share.

The company had earlier paid an interim dividend of 30 kobo per share implying that total dividend paid came to 80 kobo per share. Compared to the corresponding period in 2009 when 20 kobo was paid, dividend payout increased by 150 percent.

Commenting on the company’s performance, Owolabi Peter, a shareholder applauded the dividend payout, which he noted, is in line with the group’s shareholder-friendly disposition, just as it has continued to help reduce the  nation’s unemployment rate both directly and indirectly through its various  companies.

He however urged the board to ensure that warrants are distributed promptly subsequently. He appealed to the group to bring more of its companies,  especially Dangote Agrosacks Limited, for listing on the floor of the Nigerian  Stock Exchange (NSE).

Aderemi Oyepeju, another shareholder, while agreeing with Owolabi, prayed that  Dangote Flour’s foray into neighbouring countries would succeed for the good of  the various stakeholders. He urged the company to come to the capital market by way of a rights issue to existing shareholders, rather than going for short-term  and more expensive bank borrowings to finance investment.

Analysis of the company’s annual reports and accounts indicated that despite the harsh operating environment, turnover increased by 28 percent or N13.461 billion, from N47.927 billion to N61.388 billion.    Profit before tax was also on the upward swing growing from N3.167 billion in 2008 to N5.374 billion in 2009 indicating an increase of 69.7 percent while profit after tax rose by 86 per cent from N2.989 billion to N5.561 billion.
In the period under review, shareholders funds grew from N24.71 billion to N28.47 billion.

For the first quarter ended March 31, 2010, the company posted a 49 per cent increase in profit with a turnover of N18.3 billion while a profit of N4.6 billion was posted for the second quarter, from a turnover of N37.5 billion.

With the earning per share rising significantly to 92 kobo as against 70 kobo of the preceding year, the future is very bright both for the company and the shareholders as indications are high of better returns on shareholders investments.

Addressing the shareholders, Alhaji Aliko Dangote, Chairman of Dangote Flour Mills Plc, attributed the growth and progress recorded so far to the company’s investment in growth strategy and capacity expansion that are aimed at offering high value and consistent quality of flour and flour products offering better Value – Services to Customers.

He assured the shareholders that the company would continue to add value to them in terms of returns on their investments.

He said, “With an improved economic environment and barring any unforeseen circumstances, Dangote Flour Mills is expected to perform favorably as the group has embarked on an expansion project to enlarge our manufacturing and packaging facilities within the country. The current ongoing projects in our various mills are aimed at achieving 7,300 metric tons per day.

With the planned introduction of our wheat meal brand, Alkama and retail packs for flour and Danvita, the future looks bright and our company is positioned to take over the market lead. The plan to commence direct and indirect export into Chad, Cameroon, Niger and Sudan is at final stage.”

Dangote Flour Mills Plc commenced operations in 1999, as a division of Dangote Industries Limited – one of Nigeria’s largest and fastest growing conglomerates. Following the strategic decision of DIL to unbundle its various operations, Dangote Flour Mills Plc was incorporated in 2006. The restructuring was completed in January, 2006, when all the assets, liabilities and undertakings of the erstwhile flour division of DIL was transferred to Dangote Flour Mills Plc.

From an initial installed capacity of 500 MT per day at its Apapa mill, Dangote Flour has expanded rapidly by opening, in quick successions, three other flourmills in Kano (2000), Calabar (2001) and Ilorin (2005) , Ikorodu (2005) operating currently at 4,550 MT/Day and will increase to 7,250 MT/Day by 2011

Dangote Flour Mills operates through four wholly owned subsidiaries Dangote Pasta Limited, engaged in the manufacture of spaghetti, macaroni; Dangote Agro Sacks Limited, engaged in the manufacture of packaging materials, and Dangote Noodles Limited engaged in manufacture of Noodles & Snacks Products