• Friday, September 29, 2023
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Flour Mills declares N6.8bn final dividend as H1 profit jumps 90%

Flour Mills declares N6.8bn final dividend as H1 profit jumps 90%

The Board of Flour Mills of Nigeria Plc (FMN), has announced the payment of N6.8 billion to its shareholders as the final dividend for the period ended 31st of March 2021.

The miller is expected to pay a final dividend of N1.65 per share on all the outstanding 4,100,379,605 ordinary shares of the company. This brings the total dividend payout to qualified shareholders to N6.8 billion, as compiled from a notice filed with the Nigerian Exchange Limited (NGX).

“A final dividend of N1.65k per 50k share, being declared from pioneer profit, shall not be subject to withholding tax and if approved will be paid to shareholders whose names appear in the register of members as at the close of business on Friday, August 13th,” the company said in a notice signed by Umolu Joseph, company secretary, director, legal adviser.

On Thursday 9 September 2021, the company said the dividends will be paid electronically to shareholders whose names appear on the Register of Members and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

According to the miller, the Register of Shareholders will be closed from Monday 16 August 2021 to Friday August 20.

Shareholders with dividend warrants and share certificates that have remained unclaimed or yet to be presented for payment or returned for validation are advised to complete the e-dividend registration or contact the Registrar, Flour Mills said.

Read also: Northern Nigeria Flour Mills proposes 50kobo interim dividend amid 21% profit increase

The proposed dividend payment by Northern Nigeria Flour Mills Plc is coming on the back of remarkable first half 2021 financial results for the period ended June 30 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 highest by any fast-moving consumer goods company in the review period.

The firm also recorded growth in revenue by 48 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’ 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.

“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.

The company’s annual general meeting is scheduled to be held at Eko hotel on the 8th of September 2021.