Flour Mills of Nigeria reports double digit growth in half year revenue

NIGERIA – Flour Mills of Nigeria Plc, Nigeria’s leading integrated food business and agro-allied group has reported a 31% growth in revenue for the six months ended 30th September 2020, to N355.1 billion (US$929.8m).

During the period under-review, the group’s profit before tax was N14.6 billion (US$38.2m), a 69% jump compared to N8.6 billion (US$22.5m) in 2019.

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“With this result, our business has once again shown its resilience, by following the path of sustainable growth despite the prevailing challenges in both the local and global economy.”

Flour Mills of Nigeria Managing Director /CEO – Paul Gbededo

According to the company, the increase in profit before tax was largely driven by the agro-allied segment, which generated a profit of N6.3 billion (US$16.5m).

It explained that the segment saw very strong improvement in the edible oils and fats, protein and fertilizer businesses following investments over the last few years.

The edible oils and fats value chain saw a significant increase of 32% in volume. Volumes for the protein value chain also increased by 18%, while the starch value chain was up by 31%.

“Despite prevailing economic headwinds, the Group continued to show sustained growth in key segments, with the agro-allied segment taking the lead with a strong performance in edible oils and proteins supported by agro-inputs (fertilizer) and agro-distribution and aggregation structures,” stated FMN.

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Its Profit after tax (PAT) rose 68 % from N5.9 billion (US$15.4m) to N9.9 billion (US$25.9m).

Commenting on the result, Paul Gbededo, the Group Managing Director /CEO, stated that “with this result, our business has once again shown its resilience, by following the path of sustainable growth despite the prevailing challenges in both the local and global economy.”

He further assured that “in line with our vision to continue to grow value for our investors, Management will for the remaining part of the financial year continue to concentrate on improving operational effectiveness through accelerated strategies for Group-wide cost optimization, which will ensure sustainability in the current market climate, while we continue to invest in growing the business further.”

The owner of the iconic brand ‘Golden Penny’, announced a 9% growth in revenue to N574 billion (US$1.51bn) for the year ended March 2020.

The company’s profit before tax saw a tremendous increase of 72% to N17.5 billion (US$46.2m) compared to N10.2 billion (US$26.95m) recorded in 2019.

Its Profit After Tax nearly tripled from N4.0 billion (US$10.56m) last year to N11.4 billion (US$30m) in the period under review, increasing by 184%.

Following the impressive 2019/20 financial performance as well as the general improvement in profitability, cash flow, working capital and leverage metrics, business information company Agusto & Co upgraded FMN’s credit rating from Bbb to A- with a stable outlook.

Flour Mills of Nigeria celebrates 60 year

This year marks an important milestone for Flour Mills of Nigeria Plc as they commemorate 60years of feeding the nation of Nigeria and the region at large.

The company was incorporated in September 1960 and quoted on the Nigerian Stock Exchange since 1978.

It undertakes its operations through its subsidiaries Apapa Bulk Terminal, Agri Palm, Northern Nigerian Flour Mills, Premier Feed Mills, Golden Transport Division, Agro Allied Farms Sunti, Agri Estate, FMN Agro Allied Ventures Nigeria, Eagle Flour, Bagco, Golden Agri Inputs and Golden Fertilizer.

Its main’s brand “Golden Penny” basket of foods includes products such as semovita, masavita, pasta, noodles, refined sugar, margarine, vegetable oils, and a range of snacks and breakfast cereals. Ferilizer is also sold under this brand name.

FMN sells its animal feed and nutrition products under the brand name Top Feed.

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