Business
Dangote Flour Mills: Shareholders Approve 20k Dividend
Following the impressive result posted by Dangote Flour Mills, a dividend of 20 Kobo per share was approved by the shareholders of the company last week in Lagos during the company Annual General Meeting.
Dangote Flour Group has announced a net profit of N2.9 billion for the year ending December 31, 2008, representing a 400 per cent increase compared to N561.55 million posted in 2007. Its turnover increased from N43.13 billion to N47.92 billion from 2007 to 2008 financial year.
Group profits in 2008 also leaped from N676 million in 2007 to N3.2 billion in 2008 implying N1.4 billion group attributable profits from subsidiaries.
The expansion plan is boosted by the group’s recent unaudited result for the nine-month period ending September 30, 2009 indicating some exiting prospects. The results show that turnover for the period was N46.95 billion surpassing the whole turnover realised in the financial year of 2008. Profits after tax for the nine month period were N7.6 billion, an increase of 155 per cent over the financial year 2008.
As such, the group is proposing an interim dividend of 30 Kobo per share based on the nine months unaudited accounts of the group for the period ended September 2009. Taking a peep into some of the challenges the global environment may pose to the company in the year ahead.
According to Ahaji Aliko Dangote, chairman of the company, said he is confident that the group is financially well insulated to cope with any challenges that may arise from these crises.
Dangote noted that the year 2008 did not go without the usual business challenges, some of which include; increase of the prices of raw materials and the inability of the company to pass on these increases to the consumers.
He stress that the financial year under-review was difficult for businesses both globally and locally, as the global financial meltdown imposed challenges on the business environment through reduced access to both local and foreign capital, reduced purchasing power and sustained high price of wheat.
“The strategy adopted by the flour giant to overcome the difficult operating environment was to focus on internal efficiency to cut down on other areas of costs, the effect of which made the company profit before taxation to increase from N376 million in 2007 to N1.8 billion,” he said.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
-
News5 hours agoRSG Reiterates Commitment To Youth Dev
-
Business2 hours agoNSCDC Discloses Illegal Dump Site In Ikwerre Community
-
Maritime2 hours agoMWUN Raises Alarm Over Port Security Lapses In Lagos
-
News5 hours agoKwankwaso Dumps NNPP, May Join ADC Today
-
Business2 hours agoYenagoa’s Radisson Hotel Ready December — NCDMB, Other
-
Maritime2 hours agoMaritime Workers Demand Reinstatement Of Tally Clerks, Gangway Security Over Port Revenue Loss
-
Maritime2 hours agoNNS Hands Over Two Suspected Stowaways to Immigration Service
-
Maritime2 hours agoNigerian Navy Plans CMTF To Safeguard GOG