Flour Mills of Nigeria reports triple digit growth in profit after tax to US$30m despite economic headwinds

NIGERIA – Flour Mills of Nigeria (FMN), one of Nigeria’s leading food business and agro-allied groups, has announced a 9% growth in revenue to N574 billion (US$1.51bn) for the year ended March 2020, compared to N527 billion (US$1.39bn) achieved in 2018/19 full year.

The rise in revenue, according to the company is attributed to strong growths in all three key segments of Food, Agro- Allied and Sugar, despite prevailing economic headwinds and the difficult operating terrain of Apapa, Lagos.

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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%.

In line with management’s strategy to continue to stimulate organic growth in all segments of the business, Agro-Allied division reached profitability behind the consistent and focused investments that have been made in this locally sourced segment over the last few years.

The Agro-allied segments saw strong profit growth in Oils and Fats and Proteins with Gross Profits more than doubling in both segments on an annual basis.

“Our Food business recorded accelerated growths within the business-to-consumer (B2C) segments in line with projections, as our focus to improve customer experience saw the introduction of a range of new products and our strategic marketing and promotional activities to win over new market segments yielded the desired result,” stated the company.

The company’s Group Managing Director, Mr. Paul Gbededo described the performance as remarkable and assured investors of continued improvement.

“We will remain focused on increasing operational efficiency within the group as we continue to implement our accelerated cost optimisation plans across all businesses to ensure profitability in the new operating environment.”

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He added that the company’s 2020 focus would be on improved customer experience and sustainable growth.

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