NIGERIA – Nigeria’s leading integrated Food and Agro-allied group, Flour Mills of Nigeria Plc has reported a 45.3% rise in first quarter revenue to N339.6billion from N233.7billion reported in prior corresponding period.

The bullish top-line performance was supported by solid growth across all the company’s segments i.e., Food, Agro-Allied Sugar, and Supportive operations.

The Food segment attained 45% rise in revenue to N213.166 billion from N146.925 billion in 2021 while Agro-Allied segment registered a 37% growth to N65.652 billion from N47.688 billion.

Its sugar portfolio saw a 64% revenue with stabilized trading environments and strong demand for brown sugar which is locally produced at its farm in Sunti.

Meanwhile the animal feeds business attained 21% revenue growth, driven by investments in logistics infrastructure and farmer training extension services across the country.

The interim results which were released to the Nigerian Exchange Group (NGX) indicated that operating expenses increased by 52% to N14.7 billion, versus the prior period of 2021 which stood at N9.7billion.

Flour Mills of Nigeria continued to focus on investments enroute to consumer redistribution resulting in 8,000 new outlets in Q1 2022 and launched new SKUs in the starch and fertilizer business segments, and commenced operation of fertilizer blending plant in Kaduna with a 90 tonnes per hour capacity. Gross profit reached N33.2 billion in Q1’22, up from N25.7 billion in Q1 2021.

In the period under review, Flour Mills of Nigeria reported a nearly one per cent increase in profit before tax to N7.33billion in Q1 2022 from N7.26billion in Q1 2021, while profit after tax closed Q1 2022 at N5.49billion, representing an increase of one per cent from N5.45billion in Q1 2021.

The Group Managing Director, Flour Mills of Nigeria, Mr. Omoboyede Olusanya, in a statement, stated that despite the challenging socio-economic environment, the company continued to deliver strong business performance with resilience and operational excellence.

According to him, “Our increased operational efficiency with accelerated plans for our supply chain optimization, content localization, and cost optimization across our business segments has helped to cushion the sharp rise in the cost of raw materials.

“We would always be committed to our purpose of Feeding the Nation, Everyday through our offerings of quality products and services.

“The Group is dedicated to achieving sector strategic growth opportunities, both organic and inorganic with keen determination as we continue to create value for our shareholders.”

FMN forecasts future growth following the finalization of Honeywell Flour Mills Plc’s acquisition in May 2022 based on an enterprise value of N80 billion (US$193m).

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