Flour Mills of Nigeria Plc has released its audited financials for the year ended March 31, 2022, demonstrating solid performance across all key segments.
The Group recorded an impressive top-line growth for the full year across all business segments with revenue growing by 51percent year-on-year (Y-o-Y). The group revenue increased to N1.16trillion from N771.6billion in 2021. Profit before tax reached N41 billion, up from N37 billion in 2020/2021 (11percent YoY Growth).
The Group continued to demonstrate resilience and strong performance across Food, Agro-Allied and Support Segments delivering top-line growth of 57percent in fourth-quarter (Q4) and 51percent in full year (FY) 2022, behind strong volume growth and favourable mix.
It continued investments in local content including remarkable improvements in the Agro-Allied business segment following increase in local demand and export operations thereby contributing 47percent (N19billion) to the Group’s Profit Before Tax (PBT).
Flour Mills of Nigeria Plc strengthened its position as the market leader in flour, semolina and pasta manufacture as it obtained approval for the acquisition of Honeywell Flour Mills Plc.
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“The Group’s food segment grew by N270 billion due to higher B2B volumes and growth in core B2C categories as we expanded our focus on local content. The Group also continued to increase and diversify investments in our B2C redistribution infrastructure with the rollout of 226 vans to enhance penetration of our new business partners, especially into rural areas and to support the technology-driven market channels. Our oil and fats business grew revenue by 58percent, while pre-tax profit margin expanded by 141percent y-o-y, driven by improved export operations (revenue up 26%).
“The growing demand in the north and by other industrial customers propelled our introduction of brown sugar, which is locally grown on our farms in Sunti, to the market. At the same time, our Backward Integration project in sugar production recorded a 21percent improvement in revenue driven by increased volume. However, the rise in raw material costs largely impacted the sugar segment’s operating performance,” the company noted.
Commenting on the result, Omoboyede Olusanya, the Group Managing Director, said: “We remain committed to implementing our long-term plan with further investments in local content via product innovation across our five major value chains. Our substantial underlying earnings demonstrate our commitment to achieving sustainability as we drive to achieve food security in the country, given the challenging operating environment over the years. With the acquisition of Honeywell Flour Mills Plc. (HFMF) and the attendant differentiated offers, our portfolio continues to evolve, strategically positioning the Group for opportunities from the African Continental Free Trade Area (AfCFTA).”
“With the appointment of our third female board member and the promotion of gender diversity throughout our business segments, our sustainability agenda made more strides in line with our long-standing commitment to women’s empowerment. In addition, we developed a local content, food security, and nutrition board committee to improve the well-being of our consumers, assist in regenerating and strengthening the farming communities in our supply chains, and promote local economic development.
In line with our strategy, we will continue to increase operational efficiency with accelerated plans for cost optimizations across the Group. This will ensure that we are on course to continue to create value for our shareholders in the long run,” Olusanya added.
