Flour Mills of Nigeria showcases amazing top line performance in first quarter as it remains profitable

NIGERIA – Flour Mills of Nigeria (FMN) Plc, one of Nigeria’s leading food and agro-allied companies, has started the year with a bang announcing a 51% growth in first quarter revenue.

According to the manufacturing giant, its revenue rose from N154.6 billion (US$375.7m) attained in Q1 of 2020/21 to N233.7 billion (US$567.9m).

The company attributed the growth to bullish performance across all business segments underpinned by sustained demand in agro-allied, particularly in its edible oils and fertilizer businesses, and continued improvements in the food segment.

In the Agro-allied division, the oils & fats value chain is seeing strong revenue growth driven by export sales, while volumes in the fertilizer segment have increased as a result of the extension of blending plants in Bauchi State and a significant increase in the number of dealers onboarded during the quarter.

“The first-quarter result shows a strong start to the year and a promising indication of the business’s future as we pursue our strategy of operational efficiency and long-term growth.”

Omoboyede Olusanya – Group Managing Director

“Strong B2C products continue to drive value across the value chains inspired by continuous product innovation to meet customer needs with a focus on local content,” said Flour Mills of Nigeria.

Also, the group undertook strategic decisions and investments in route to consumer redistribution, including further investments in vans, automation of redistribution performance tracking, and improved dealer inventory management.

Following the strong revenue growth, the owner of the iconic food brand Golden Penny, attained a 12% rise in Profit Before Tax to N7.3 billion (US$17.74m), and Profit After Tax is at N5.4 billion (US$13.12m), compared to N5.0 billion (US$12.15m) in Q1 2020/21, a 10% YoY growth.

Commenting on the result, Omoboyede Olusanya, the Group Managing Director, said, “The first-quarter result shows a strong start to the year and a promising indication of the business’s future as we pursue our strategy of operational efficiency and long-term growth. I am particularly pleased that we achieved an amazing top line growth and remained profitable, with Profit Before Tax increasing by 12% and Profit After Tax increasing by 10%.

“I envision even more organic growth across the group, fuelled by our expanding ethos of putting consumers at the heart of our business. As we continue to execute our long-term strategy of excellence-driven growth, I am optimistic that we will meet our year-end growth targets while improving operating efficiency, lowering finance costs, and ultimately increasing shareholder wealth.”

The company seeks to maintain or exceed the stellar performance exhibited in the year ended March 31, 2021, where its revenue rose by 34.5% from N573.77 billion (US$1.3 billion) of the previous corresponding period to N771.6 billion (US$1.8 billion).

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Its profit before tax jumped by 112 per cent to N37.19 billion (US$90m) from N17.50 billion (US$42.5m), while profit after tax grew faster by 126 per cent to N25.72 billion (US$62.54m) compared with N11.38 billion (US$27.67m) the preceding year.

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