Shareholders of Dangote Flour Mills Plc on Friday commended the board and management of the company for paying dividend for the 2017 financial year after recovering from years of losses.
The flour milling company had recorded losses for some years before returning to profitability in 2016. But the company did not pay dividend as it had to ensure the clearing of its books of losses and stabilise.
Having consolidated with a higher profit of N15.1 billion for the year ended December 31, 2017, which was higher than the N10.5 billion in 2016, the company recommended a dividend of 20 kobo per share.
Reacting to the improved performance and recommendation of dividend, shareholders at the company's annual general meeting(AGM) held in Lagos, shareholders noted that the board and management performed creditably which enhanced profitability and returned it to dividend paying.
For instance, Mr. Nona Awoh, said that the management of Dangote Flour Mills achieved cost reduction through prudent and efficient use of resources which positively reflected in its earnings, profitability and dividend payment.
According to him, cost reduction impacted on the margins and tasked the management to continue with the trend.
Another shareholder, Mrs. Bisi Bakare, said shareholders invest in shares with the expectation of receiving dividends, therefore the declaration and payment of dividends by Dangote Flour Mills was exciting and commendable.
In his response, the Chairman of Dangote Flour Mills, Mr. Asue Ighodalo thanked all the shareholders for appreciating the efforts of the company's management towards producing better returns.
Ighodalo said the company's 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."
According to him, the company continued to leverage on the improved sales and operational capabilities during the period to deliver outstanding performance.
He promised that the company will embark on aggressive marketing and branding campaign to ensure that the brand is visible throughout the nation.
A look at the results showed that Dangote Flour Mills recorded a turnover of N125.4 billion, showing an increase of 18.6 per cent from N102.7 billion in 2016. Profit after tax was on the upward swing, increasing by 43.1 percent, from N10.5 billion to N15.1 billion.