The board of Dangote Flour Mills Plc, at the weekend presented its financials for the nine-month ended September 30, 2017, indicating that its performance for the two previous quarters was not happenstance, that it is back for real and ready to made investors smile.
According to the result, turnover and profit recorded three-digit growth, despite an equally significant increase in cost of sales and administrative expenses, just as foreign exchange gain was double that of preceding third-quarter.
Revenue from sales for the period grew by N50.43bn or 101.16% to N100.279bn from N49.849bn, out of which sale of flour boosted revenue by N86.308bn from N38.819bn; followed by spaghetti, macaroni and other pasta products, which yielded N13.095bn from N6.663bn; while noodles contributed just N874.792m, dropping from N4.366bn.
Cost of sales gulped all of N77.033bn, a rise from N35.82bn; leaving gross profit of N23.245bn, up from N14.028bn.
Other income also soared from N68.23m to N3.047bn; distribution and administrative expenses stood at N10.968bn, up from N5.63bn; operating profit before foreign exchange gain rose from N8.464bn to N15.324bn; while gain on sale of assets held for sale, stood at N3.743bn, a line item that was inexistent in prior third quarter.
Operating profit increased from N4.709bn to N19.068bn; finance costs rose slightly to N2. 56bn in the third quarter of 2017, as against the previous N2.294bn; even as interest income soared from N228.796m to N1.501bn.
Profit before tax there for improved from N2.643bn to N18.009bn; just as tax expenses jumped from N198.864m to N4.956bn; following which profit after tax increased by N10.21bn or 359.35% from N2.842bn to N13.052bn, translating to Earnings Per Share of 255.0 kobo, to 57.38 kobo.
The company reported cumulative profit of N307.038m, a significant improvement from the loss of N20.183bn in the third quarter of last year to June 30, 2016.
