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FMN’s innovation in food production drives up first-quarter revenue by 51%

Financial Times lists FMN among fastest growing companies in Africa

Flour Mills of Nigeria (FMN), the country’s leading integrated and agro-allied group, saw a 51 percent jump in its revenue growth, driven mainly by innovation in its food segment in the first quarter of 2021.

FMN revenue for the period rose from N154.6 billion to N233.7 billion in the corresponding period in 2020/2021, a 51percent year-on-year growth.

Its financial performance was impressive across all business segments underpinned by sustained demand in agro-allied, particularly in edible oils and fertilizer businesses, and continued improvements in the food segment.

Similarly, FMN first-quarter results for the year 2021/22 showed further consistent remarkable performance with strong revenue growth and profit after tax increasing by 10percent year-on-year to N5.4 billion despite headwinds.

Results from the first quarter which ended June 30, 2021, reflect FMN’s strong start with consistent top-line growth and solid improvements in profit.

“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,” said Omoboyede Olusanya, group managing director, FMN in a statement while commenting on the financial result.

“I am particularly pleased that we achieved an amazing top-line growth and remained profitable, with profit before tax increasing by 12percent and profit after tax increasing by 10percent,” he said.

He noted that as the group continues with its long-term strategy of excellent drive growth, its year-end driven growth targets are realizable.

Read also: FMN’s 126% profit credited to product innovation, backward integration drive

Nigeria’s biggest miller by market value, profit before tax was N7.3 billion, compared to N6.5 billion in Q1 2020/21, a 12percent annual growth. Volume and revenue continued to appreciate despite increases in international food prices and input costs during the review period.

Revenue from food, agro-allied, sugar, and support services subsidiaries grew by 61percent, 44percent, 24percent, and 63.3percent respectively, compared to a year ago, indicating that there were improved sales for the period.

According to FMN, the increase in international food prices and input costs offset 12 percent in revenue of the organisation’s profit before tax, with a time lag to rectify the supply chain impact.

The top food producers further recorded improved year-over-year growth earnings in its food division’s Edible oils and Fertilizers business, as well as a solid operational drive in its B2C segment.

FMN attributed the steady development of its food business to strategic decisions and investments in route to consumer redistribution, including further investments in vans, automation of redistribution performance tracking, and improved dealer inventory management.

In the agro-allied division, the oils & fats value chain continues to see 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.