Flour Mills of Nigeria Plc, Nigeria’s leading integrated food and agro-allied group, owners of the iconic food brand, ‘Golden Penny,’ announced its unaudited half-year (H1) results for the year 2021/22 showing consistent growth, with revenue increasing by 47 percent and Profit After Tax (PAT) growing by 6percent compared to the same period last year.
The Group’s revenue was N523 billion, compared to N355 billion in H1 2020/21 (47percent year-on-year (YoY) growth. Performance was consistent across all key business segments in the Group with the food, agro-allied and support segments all growing by more than 35percent.
The Group’s Profit Before Tax (PBT) was N15.5 billion and increased by N0.9 billion versus H1 2020/21 (6percent YoY growth). This performance was underpinned by continued strong operating performance in the food segment; continuous improvement in the agro-allied segment and a significant growth in the support segment lead by the Bagco local packaging solutions, which showed a remarkable growth.
The Group’s Profit After Tax (PAT) was N10.5 billion, compared to N9.9 billion in H1 2020/21 (6percent – YoY growth). The Group’s solid operational performance was stimulated by strong organic growth, supported by product innovation, and continued momentum in retail sales.
In accordance with management’s long-term strategy for product innovation, the Group continued to source raw materials sustainably to ensure high product quality and value addition in its product offerings, while driving growth in B2C segments and investing in route to market activities.
Read also: Nigerians groaning under galloping staple food prices
“Our food businesses recorded volume growth across flour, ball food, pasta, and noodle categories in line with projections introducing smaller SKUs across some products to address cash outlay considerations for medium consumption customer and outlets, and further improving the reach of the products.
In furtherance to our growth strategies the food division commenced the installation of new pasta, noodles, and breakfast cereal lines to increase capacity and meet demand.”, Flour Mills noted.
It also noted that the division has commenced an expansion plan to further deepen market penetration in Northern markets through enhanced distribution and development of new point of sale outlets, adding that, “In the agro-allied division, the Group continued its goal of driving local content inclusion throughout the value chain and have seen strong growth, especially in edible oils and fertilizer.
The Group’s cost-optimization initiatives continue to bear fruit as evidenced by the lower operating ratio reported. Over the years, deliberate actions had been taken to minimize financial leverage through debt restructuring while maintaining an appropriate leverage.”
Commenting on the result, Omoboyede Olusanya, the Group Managing Director, said:
“I am very pleased with our half year results. Despite prevailing economic challenges and tough business environment, our Group has continued to show resilience by achieving significant progress across operations and further strengthened the bottom line.
In furtherance of FMN’s purpose of ‘Feeding the Nation, Everyday,’ and our goal to continue to create value for our esteemed stakeholders, we will remain focused on maintaining growth and sustaining profitability by increasing local content through product innovations and investing in production capacity to strengthen the value chain. We will also continue to focus on achieving operational efficiency and ensuring cost optimization across our operations.”
