NIGERIA – Flour Mills of Nigeria Plc, Nigeria’s leading integrated food and agro-allied group, has attained a 47% rise in revenue in the first six months of the year 2021/22 to N523 billion (US$1.27 billion), compared to N355 billion (US$859.97m) recorded in the corresponding previous period.
According to the owner of the iconic food brand, Golden Penny, the positive performance was consistent across all key business segments in the group with the food, agro-allied and support segments all growing by more than 35%.
“I am very pleased with our half year results. Despite prevailing economic challenges and tough business environment, our Group has continued to show resilience by achieving significant progress across operations and further strengthened the bottom line,” said Omoboyede Olusanya, the Group Managing Director.
The company’s food businesses recorded volume growth across flour, ball food, pasta, and noodle, courtesy of its introduction of smaller SKUs across some products to address cash outlay considerations for medium consumption customer and outlets, and further improving the reach of the products.
In furtherance to its growth strategies, the food division commenced the installation of new pasta, noodles, and breakfast cereal lines to increase capacity and meet demand.
The division has kick-started an expansion plan to further deepen market penetration in Northern markets through enhanced distribution and development of new point of sale outlets.
Meanwhile, in the agro-allied division, the FMN continued its goal of driving local content inclusion throughout the value chain and have seen strong growth, especially in edible oils and fertilizer.
In accordance with management’s long-term strategy for product innovation, the Group continued to source raw materials sustainably to ensure high product quality and value addition in its product offerings, while driving growth in B2C segments and investing in route to market activities.
During the period under review, the company’s cost-optimization initiatives continued to bear fruit with the agri-commodity processor registering 6% growth in Profit Before Tax (PBT) to N15.5 billion (US$37.55m).
This performance was also attributed to the significant growth in the support segment lead by the Bagco local packaging solutions, which showed a remarkable growth.
The Group’s Profit After Tax (PAT) was N10.5 billion (US$25.44m), compared to N9.9 billion (US$23.98m) in H1 2020/21, reflecting a 6% – YoY growth.
“In furtherance of FMN’s purpose of ‘Feeding the Nation, Everyday,’ and our goal to continue to create value for our esteemed stakeholders, we will remain focused on maintaining growth and sustaining profitability by increasing local content through product innovations and investing in production capacity to strengthen the value chain.
“We will also continue to focus on achieving operational efficiency and ensuring cost optimization across our operations,” concluded Olusanya.