Flour Mills’ revenue spikes 53% on price, volume increases

Flour Mills of Nigeria (FMN) Group’s profit for the 2016/2017 financial year surged by 53 per cent to N524 billion, despite macroeconomic challenges. The growth in revenue was driven by price and volume increases during the year.

According to a release signed by Joseph Odion Umolu, company secretary and head of legal services, it made a profit after tax of N8.8 billion, a substantial improvement over profit levels of the previous year.

The Group recorded an operational loss of N6.2billion in the 2014/2015 as profitability was restored only by profit of N13.9 billion from the sale of 50 per cent stake in UNICEM.

The group’s performance for the year was, however, dampened by foreign exchange problems and a devaluation of Nigeria’s currency, the Naira. Devaluation of the Naira by 40 per cent, uncertainties associated with persistent foreign exchange scarcity, and sharp fluctuations in rates adversely affected FMN’s performance, the company said

“After adjusting for the full impact of the exceptional foreign exchange loss of N6 billion, the company posted an After Tax Profit of N9.8 billion compared with N10.4 billion recorded last year,” the release said.

Flour Mills of Nigeria Plc (FMPlc), the Group’s flagship company, leveraged the strength and quality of the’Golden Penny’ brand to achieve 51 per cent growth in revenue to N375 billion.

FMPlc directors have indicated plans to pay, at its upcoming annual general meeting, dividend of N1.00 for each ordinary share of the company, similar to that paid last year.

“This is in line with the Company’s resolve to maintain consistency in annual payment of dividends to its esteemed shareholders,” the release said.

FMN continues its evolution from a food processing company to a fully integrated consumer foods business through substantial investment in its agro-allied businesses. This drive is supported by strong internal agro-allied supply chain oils and fats, Sweeteners, Feeds and Proteins, Starches, and agro-distribution.

The emerging macro-economic environment and government initiatives have necessitated a strong ‘local’ input and output drive and FMN is determined to be a part and major contributor to the Government’s backward integration policy, the released noted.

“As we strive to further restructure our operations, streamline our business operations to focus on core businesses, constantly monitor and manage our costs optimally, improve and re-engineer our existing product range, we will focus on innovation and develop new strategies for the market making our products more visible and available at points of sale while we continue to improve our sales, merchandising, redistribution personnel and activities, all geared at maintaining our promises in delivering sustainable gains to all stakeholders,” the Company said.

 

Ugochukwu Akobi, With wired Report