[upme_private]Dangote Flour Mills Plc has released its 2012 FY results posting a loss after tax of N2.2billion. Revenue dropped 11.5% to N58.6billion in 2012 from N66.28billion in 2011. Cost of sales remained high at N53.4billion (2011:N56.2billion) chalking off 91% of revenues. Loss per share dipped to a 55kobo from earnings per share of 12.47kobo.
- Revenue Growth continues to slide as intense competition takes it tolls. This years slide of 11.5% however tops 2011/2010 comparative slide of 10%.
- Cost of sales is still stubbornly high at N53.4billion..91% of Gross Profit.
- Operating Expenses is also very high at 103% of Gross Profit or 9% of Revenues.
- Finance cost also came high at N3.1billion
- The company also continued with its bad debts impairment write off N1.4billion. The company claims the write offs can be written back because it was insured. However, they have been lobbying to recover the funds from an insurance company
- Debt to Equity is also high at 93% of Equity. It will be interesting to see what the Tiger Brand Acquisition will do to change this
- The share price dipped o.21% to N9.51
Dangote Flour Mills Posted its result on the website of the NSE[/upme_private]