The share price of Dangote Flour Mills appreciated by almost 10% maximum again on Tuesday as investors apparently ignored the impact of its first quarter unaudited financials presented to the Nigerian Stock Exchange (NSE) on that day.
Highlights of the result showed that revenue dropped by 13.4%, cost of sales inched 4.59%, while operating loss stood at N2.77bn from the previous N2.511bn gain; followed by the loss before tax. Loss after tax was however reduced by the N647.701m tax rebate, compared to the N680.145m tax reported in 2018Q1.
The share price of Dangote Flour Mills has continued record sustained robust growth, following announcement just after the Easter holiday by its management that it has received a binding offer from minority shareholder- Olam International to acquire the remaining 99.9% stake of its shares at a consideration of N129.9bn or N26 per share (READ MORE).
Revenue dropped from N26.509bn in 2018 to N22.956bn; with cost of sales gulping N22.904bn, as against the previous N21.899bn; resulting in gross profit of just N51.855m, down by 98.88% from N4.61bn.
Other income however increased by 68.51% from N359.028m to N605.016m; just as distribution and administrative expenses rose 39.45% to N3.427bn, compared to N2.457bn in 2018.
Operating profit before foreign exchange loss and operating loss stood at N2.77bn, as against the N2.511bn gain in 2018; finance income fell from N735.643m to N75.087m. Finance cost dropped to N850.862m from N985.445m; following which loss before tax stood at N3.546bn, down by 256.8% when compared to the profit of N2.261bn in the corresponding period of 2018.
Net loss stood at N2.898bn from a profit of N1.581bn, resulting in Loss per share of 58 kobo, as against the N31.65 in 2018.