DANGOTE Flour Mills is set to tap into opportunities that exists in the pasta, wheat and bread market in the west African sub region while taking advantage of Government’s current incentives to Nigerian exporters and friendly import policies of Economic Community of West African States (Ecowas.)
Mr. Rohit Chaudry, managing director of Dangote Flour Mills Plc, in a chat with media in Lagos said the Flour Mills group has concluded arrangements to begin the exports of its products to Ecowas countries in view of its envisaged excess local capacity and the huge demand for the products in the sub-region.
According to him, “We are ready for the exports. All the necessary arrangements have been concluded. The demand is high and we have the capacity to meet the regional demand. If we export from Nigeria to any of these countries, first of all we collect 30 per cent export incentives and when we get into those countries, we are not to pay local duties. So it will benefit us quite a lot.”
Chaudry said Dangote Flour Mills has the capacity to meet both the local and international demands for the products, revealing that Dangote products are already known and popular in the target markets of the Economic Community of Western African States. He explained that with a population of over 300 million, the region offers a very huge export market. He stated that though Nigeria accounts for about 150 million of the ECOWAS population, the flour mills group is gunning for the other 150 million in other Ecowas states.
He disclosed that  a recent research indicated that per capita consumption of wheat related products is higher in the Francophone countries than Nigeria as there are several local alternatives like potatoes, amala, tuwo, maize. With this development, Dangote Flour Mills, according to him, is set to launch with full force into these markets with its installed excess capacity. Dangote Flour Mills, a subsidiary of Dangote Group is made up of four wholly owned subsidiaries: Dangote Flour Mills, Dangote Noodles, Dangote Pasta and Dangote Agrosacks.
The Flour Mills as a group posted a turnover of N54.26 billion for the nine months ended September 30, 2010 indicating an increase of 15 percent from N47.03 recorded in the corresponding period of 2009. Analysis of the third quarter results indicated that gross profit rose by 20 percent from N10.19 billion as at 2009 to N12.18 billion in the review period. Operating profit was also on the upward swing increasing from N7.75 billion to N8.23 billion, while profit before tax (PBT) was up by 25 percent, from N5.67 billion to N7.10 billion. Profit after tax rose by the same 25 percent from N5.59 billion to N6.96 billion. Earnings per share for the flour group grew from 112 kobo to 139 kobo.
Turnover for Dangote Flour (as an entity) in the review period, rose from N32.16 billion to N35.30 billion, representing an increase of 10 percent. Gross profit rose from N6.95 billion to N8.37 billion indicating an increase of 20 percent, while operating profit recorded a 21 percent increase from N5.77 billion to N6.96 billion.
Profit before tax (PBT) increased by 48 percent, from N4.03 billion to N5.97 billion, while profit after tax surged by the same 40 percent, from N3.95 billion to N5.85 billion.