Flour Mills of Nigeria (FMN), the country’s biggest flour miller by market value beats peers in the Fast-moving consumer goods (FMCGs ) industry to post the highest jump in profit in the first half of 2021.
The miller’s profit soared 90 percent to N15.5 billion in H1 2021 compared to N8.1 billion reported in the same time last year.
The firm also recorded growth in revenue by N48 percent to N450 billion in the period from N304.8 billion in June 2020.
Analysis of the company’s financial results for the last seven years showed that the half-year profit reported in 2021 was the highest in the period.
“Similar to the performance over the last few quarters, our business has been able to sustain the strong performance despite the increasingly difficult terrain and uncertainties,” the company said in its financials.
The company’s financials also revealed how efficient the miller was in the first six months of 2021 compared to the same period of the previous year. Flour Mills’s gross profit was up by 37.92 percent in the review period, from N43.51 billion in H1 2020 to N60.01 billion in H1 2021.
The company’s remarkable growth in the period of tough economic environment is rooted in its strategic actions. Omoboyede Olusanya, group managing director of FMN, said the company adapted consistently to the year’s challenges and invested significantly in the food segment of the business.
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“FMN is now harvesting the fruits of these efforts and remains committed to braving a continuously uncertain environment with cautious optimism, innovation, portfolio advancement and other strategies outlined in our recent sustainability report,” he said.
One of the company’s key growth drivers is the big gains from its agro-allied strategy. With a broad basket of food products and robust pan-Nigerian production, distribution, and supply chain network, Flour Mills of Nigeria has in the past few years invested in its route-to-market strategy and rapid expansion in the B2C sectors.
“Management remains optimistic that with continued efforts in sales and marketing activities geared at boosting our top line while keeping the costs under control we should be able to sustain the good performance for the remaining period,” FMN said.
Dangote Sugar also made the gainer’s chat. The company reported profit growth of 9 percent to N12.6 billion in H1 2021 compared to N11.5 billion in the same time last year. Its revenue surged 28 percent to N132 billion compared to N103.2 billion in the period.
Unilever turned the corner to post a profit of N714.7 million in H1 2021 from a loss of N519 million in the first half of 2020 to secure a seat on the list of industry top performers in the review period. Unilever also grew its sales by 43 percent to N39.1 billion from N27.3 billion in the periods under review.
However, Nestle and Nascon recorded a 0.4 percent and 3 percent decline in profits respectively during the periods but their revenue grew 21.6 percent and 21 percent respectively.