Business

‘Parlous power, infrastructure situation hindering growth’

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Poor Infrastructure  Hinders Business Development

By Nsikan Ikpe

 

An admission has come that the subsistingly parlous power and infrastructure situation in the country has been identified as a major challenge in carrying out productive businesses in Nigeria and impact negatively on the bottomline of firms like Dangote Flour Mills Plc. “These factors among others considerably increased the company’s inputs cost and negatively affected capacity building in meeting customer demand”.

Declaring this in Lagos at the 12th Animal General meeting (AGM), of Dangote Flour Mills Plc, Chairman, Asue Ighodalo, expressed dismay over the poor infrastructural development in the country. He said power and other infrastructural challenges remained unresolved, saying that having access into major parts of Apapa has been difficult for those desirous of carrying out business activities.

According to him however, despite these economic fallouts and the challenging business environment, Dangote Flour has remained focussed and resilient and is as a result paying a final dividend of 20 kobo for every ordinary share of 50kobo each held by shareholders for the year ended December 31, 2017.

Turnover for the financial year 2017 stood at N125.4 billion, representing an increase of 18.6 percent N105.7 billion recorded in 2016. Profit after tax stood at N15.1billion indicating an increase of 43.1 percent compared to N10.5 billion in 2016 financial year.

On the divisional performance, Dangote Flour, the company’s flagship division continued to leverage on the improved sales and operation at capabilities during the period to deliver outstanding performance. Sales volumes increased by 6.3 percent while turnover increased by 29.2percent resulting in a gross profit of N26.9 billion and a profit before interest and tax of N18.6 billion compared to previous year N15.7 billion. Pasta product, volumes performance declined compared with the previous years. The sales decreased by 19.2 percent while its revenue similarly increased by 6 percent due to rigorous cost management. G

ross profit stood at N2.7billion while profit before interest and tax was N359 million and comparative performance for 2016 was N2.4 billion. Gross profit and a profit before interest and tax N367 million respectively.

Some of the shareholders who spoke at the meeting expressed joy and commended the management of Dangote Flour Mills for payment of dividend after many years of non-payment of dividend by the company. The Chairman promised that the company would continue to develop strategies that would promote sustainable growth for the interest of shareholders.

 

Alhaji Aliko Dangote

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