Dangote suffers N9.5bn loss

Dangote Flour Mills Plc has reported a loss before tax of N9.554 billion for the nine months to June 30, 2015.

The loss was 52.1 per cent higher than the N6.282 billion pre-tax loss it reported in the same period of 2014.

The company also posted a N9.113 billon loss after tax, 109.9 per cent higher than the N4.491 billion it suffered in the nine-month period ended June 30, 2014.

The loss was recorded despite the fact that the company grew its revenue in the review period by 15.2 per cent from N28.730 billion to N33.102 billion, no thanks to rising costs and expenses, among other things.

For instance, the company’s cost of sales rose from N26.978 billion in the review period to N30.486 billion, while distribution, administration and other expenses jumped from N5.282 billion to N6.127 billion.

Dangote Flour Mills had started its 2015 financial year on a negative note, declaring a loss after tax of N2.920 billion in the first quarter of the year.

The company’s unaudited financial statements for the first quarter ended December 31, which it filed with the Nigerian Stock Exchange in February, showed a loss after tax of N2.806 billion for the corresponding period a year ago.

The N2.920 billion loss in the first quarter had been recorded despite a 27.5 per cent growth in its revenue year-on-year. The financial statements showed that the company’s revenue grew from N8.364 billion in the three months ended December 31, 2013 to N10.665 billion in the review period.

The increase in revenue was, however, neutralised by increases in the cost of sales and finance costs