Tiger Branded Consumer Goods loses N900mn in three months

02 Feb 2016
Chibuike Oguh

Summary

TBCG said revenues grew slightly by 0.06 percent in Q1 2015 to N10.672 billion.

Aliko Dangote, President and Chief Executive, Dangote Group

Tiger Branded Consumer Goods (TBCG), the troubled flour and pasta company recently reacquired by Aliko Dangote, has reported another string of quarterly losses, according to an unaudited financial statement released on the Nigerian Stock Exchange on Tuesday.

In the three months ended on December 31st, 2015, TBCG said it lost N900.7 million, compared with a loss of N2.92 billion reported in a similar period in 2014.

The Q1 loss comes after TBCG reported that it lost N12.68 billion in the full-year ended on September 30th, 2015.

According to the statement, TBCG said revenues grew slightly by 0.06 percent in Q1 2015 to N10.672 billion, compared with N10.665 billion reported in a similar period in 2014.

TBCG, formerly Dangote Flour Mills, has been posting massive losses since 2012, when Tiger Brands, South Africa’s largest food producer, paid $200 million for a 65 percent stake. TBCG’s consistent losses forced Tiger Brands in December 2015 to sell back its controlling stake to Dangote, Africa’s richest man, who agreed to inject N10 billion to revitalize the loss-making company.

TBCG operates in Nigeria’s highly competitive wheat flour and pasta market alongside some deep-pocketed rivals such as Flour Mills of Nigeria, Olam International, and Honeywell Flour Mills.

Chibuike Oguh is Financial Nigeria's Frontier Markets Analyst


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