Dangote Flour, which is soon to be sold to Crown Flour – a subsidiary of Olam, is piling up losses for its coming investors.
Highlights of the group’s third quarter result indicates that the company lost N6.84bn.
The wheat milling firm earned N76.75bn in the quarter ending September 30.
It had previously netted in revenues worth N83.29bn in the period ending June 30.
This is a loss of 7.85 per cent.
Proshare reports that the firm’s loss before tax increased by 316.75 per cent to N9.64bn.
Its loss after tax soared by 309.69 per cent to N6.84bn.
The firm’s net asset also decline by 28.97 per cent to N39.
It’s before tax losses was occasioned by increased cost of sales, distribution and administration.
In April, the board of directors of Dangote Flour approved a 100 per cent take over from Olam.
Dangote sold over 60 per cent of the company’s stake to South Africa-based Tiger Foods in 2012.
That relationship lasted for three years.
It climaxed in Africa’s richest man repossessing his firm for just a dollar.
In 2013 and 2014, Dangote Flour was on the loss trail.
Its scorecard in 2018 amounted to a deficit of N1.16bn.
Experts have said the firm is not strategic to the Dangote Group, hence its laggard performances and double change of ownership in six years.
SaharaReporters, New York