Shareholders of Dangote Flour Mills Plc has commended the company’s management for returning profitability and the subsequent payment of dividends.
Speaking in Lagos at the company’s annual general meeting for the financial year ended December 31 2017, they noted that the board and management performed creditably well within the period, which enhanced profitability and returned it to dividend paying.
Nona Awoh, a shareholder rights activist, in his remarks congratulated the board and management of Dangote Flour Mills for returning the company to dividend payment after years’ of no-dividend declaration as a result of losses.
He said that the management of Dangote Flour Mills in the review period achieved cost reduction through prudent and efficient use of resources which positively reflected in its earnings, profitability and dividend payment. Cost reductions, he opined impacted on the margins and tasked the management to continue with the trend.
Another shareholder, Adeleke Olajimeji impressed by the performance of the company in the period under consideration described the financials as the best of its kind in many years. He counseled the management to be more proactive in terms of marketing and branding by ensuring that the company’s brand is visible through the nation.
Sotunde Shopeju, a veteran shareholder activist, lauded the board and management for retuning the company to profitability and declaration of dividends, which he said will enhance the welfare and wellbeing of shareholders. He stated that with the declaration of dividends, shareholders’ hope and expectations have been met as they will now begin to gain from the proceeds of their investments.
Bisi Bakare, in her remakes said shareholders invest in shares with the expectation of receiving dividends, therefore the declaration and payment of dividends by Dangote Flour Mills is exciting and commendable.
Responding, Chairman, Board of Directors, Dangote Flour Mills, Asue Ighodalo thanked all the shareholders for appreciating the efforts of the company’s management towards producing better returns.
Advancing reasons for the impressive run in the period under review, Ighodalo said the company management would not rest on its oars but “will continue to develop strategies to harness opportunities occasioned by improvements in economic indices while mitigating the adverse effective of the continued and emerging threats to the performance and growth of our business”.
He promised that the company will embark on aggressive marketing and branding campaign to ensure that the brand is visible throughout the nation.
A review of the company’s annual report and account presented at the AGM indicated that turnover rose by 18.6 percent from N102.7 billion to N125.4 billion. Profit after tax was on the upward swing, increasing by 43.1 percent, from N10.5 billion to N15.1 billion. The company completely extinguished all of the accumulated losses of prior years which enabled to declare dividends.
According to the annual reports and account, the company’s flagship division, Dangote Flour, continued to leverage on the improved sales and operational capabilities during the period to deliver outstanding performance. Sales volumes increased by 29.2 percent.
