NIGERIA – Flour Mills of Nigeria (FMN) has said it is well positioned to enhance profitability and deliver long term value to its numerous stakeholders.
This, according to the company, is in furtherance to strategic acquisitions it made in its core business areas in 2013.
Managing Director of the company, Paul Gbededo, who made this known while presenting the ‘Facts Behind the Figures’ of the company to stock brokers in Lagos, explained that new investments made by the company last year are nearing conclusion.
On the back of the N246 billion turnover and profit after tax of N10.47 billion achieved in its last financial year, Gbadedo said, the company is poised to continue to deliver consistent top and bottom line growth.
According to him, “We are commissioning and improving our capacity utilisation. Our new investments and projects are reaching maturity. We would start production at the 350,000 metric tons per annum edible oil processing company in Ibadan by the end of this year, our snack business is reaching maturity with the completion of Golden snack facility in Agbara, the $250million Golden sugar investment, our oil palm processing , all these investments would start impacting on the bottom line moving forward.”
He explained that the company’s investments in the food and agro- allied business constitute 95 per cent of its revenue.
On why the $250million Golden Sugar Company did not generate revenue for the financial year, Gbadedo said: ‘’For such a huge investment, you will not expect to make profit in the first year but we have positioned it for growth. We just commissioned the plant and the first year was difficult, we could not produce enough.”
“Again, we commenced production last year and the sugar that was selling at N9,000 dropped to N5,500 but we are strong enough to stay in that business and we are looking beyond what we have today. We are currently at 48 per cent capacity utilisation and in the years to come, it will add proper value to all shareholders.”
He said as part of its strategy to align with government backward integration initiative, the company has acquired 500 hectares of land in Niger state for rice cultivation.