Dangote Flour Mills released its H1 unaudited results and did not surprise by posting a loss of N815m. The company has recently been acquired by Tiger Brand, the South African Giant and has frequently been analyzed on this blog. As I pointed out in the past the company has suffered immensely from decrease in revenue, an issue that has continued to affect bottom line. Revenue dropped 13% to N29b this period. Ironically, the company has lowered cost with Selling and admin expenses dropping by about 38% when compared to the same period last year. Remarkably, the company was able to generate an impressive operating cash flow of N10.6b, a result that will boost the confidence of its new owners/investors. By this time last year operating cash flow was negative N8.3b.
Dangote Flour Mill’s 2012 unaudited H1 results can be found on the website of the NSE.
