FlourMills Nigeria records US$1.18 billion revenue in third quarter

NIGERIA – Flour Mills Nigeria Plc has posted revenue of US$1.18 billion and profit after tax of US$36.6million for the nine-month period ended December 2017.

The company’s nine months performance showed group’s revenue of US$1.17 billion, up from US$1.07 billion in 2016, representing a 10% year-on-year increase.

The firm also reported a profit after tax of US$36.6 million for the nine months ended December 2017, compared to US$20.3 million in 2016, representing a year-on-year increase of 80%.

The group in a financial statement made available to the Nigerian Stock Exchange also recorded profit before tax of US$53.8 million, in contrast to US$28.4 million in 2016, accounting for a year-on-year growth of 89%

The company’s earnings per share increased in 2016, showing an increase of 82% year-on-year growth.

According to the group’s management, the food business was responsible for an increase of US$123.3 million of the Group’s turnover, coming from its flour, pasta and noodles products’ portfolio.

It noted that the packaging business of the group contributed US$2.7 million to the group’s profit, an increase of 150%.

The management noted that with a view to significantly improve on working capital, while reducing debts, the company recently proceeded with its rights issue programme, adding that it is expected that the programme will strategically position the company for sustainable growth.

The Group Managing Director of the company, Paul Gbededo, said, “We are delighted to report another quarter of solid performance, despite harsh operational environments, which have been compounded further by traffic congestions in Apapa.

Our food business has continued to show impressive results, in line with our strategy to lead the market in all major categories.

We shall continue to drive efficiency and grow our footprints in the Agro-allied segments also in achieving our core focus of feeding the nation, every day.”

The Chief Finance Officer (CFO), Jacques Vauthier also said that the management of the company was confident that this sector will record even stronger performance as the year progresses.

“To this end, we are enhancing our marketing activities to push the brand’s presence into newer outlets while strengthening present market share,” he added.

Flour Mills posted 44.89% in profit after tax for the half year ended September 30, 2017.

The group in a filing with the Nigerian Stock Exchange (NSE) said its profit after tax stood at US$25.8 million, compared to US$17.8million for the same period in 2016.

Profit before tax was US$37.2 million as against US$24.2 million for the same period in 2016.

Revenue was US$823.6million for the six months ended 30th September 2017, an increase of 17% when compared with US$704.6 million of the same period last year.

Gbededo added, “Our half year results show continued growth through most segments of our businesses, especially in the food business, delivering strong top and bottom line financials in line with our objectives.

The Group recorded growth from volume and product mix.

This growth was despite what continued to be a challenging business environment.

Overall, the business shows an impressive performance in the first half of the year.

We are positive that we are on track to meet our growth targets for the remaining part of 2017/18 financial year.”

The food business value chain was responsible for an increase of US$110.4million (N40 billion) of the Group’s turnover.

The Guardian Nigeria

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