Flour Mills of Nigeria Plc has released its unaudited nine months (9M) financial results for the period ended December 31, 2021, showing impressive growth. The group’s revenue grew by 48.5percent to N824.980billion from N555.341 billion in 9M’2020. Persistent good operating performance in the Food segment; continuous improvement in the Agro-Allied and Support segments alongside strong volume growth resulted in an impressive Profit Before Tax (PBT) of N25billion in 9 months from N23.60billion in 9M’2020 and N9.8billion in Q3 – up 7percent and 8percent respectively.
Continuous product innovation, improved capacity utilization, and effective route to market strategies aided the Group’s outstanding financial performance across its core business segments. Flour Mills is Nigeria’s leading integrated food and agro-allied business and owners of the iconic brand, ‘Golden Penny’.
Flour Mills of Nigeria Plc in 9M demonstrated solid performance across Food, Agro-Allied and Support Segments delivering topline growth of 51percent in Q3 and 49percent in 9M, behind strong volume growth and mix.
Agro-Allied segment in 9M contributed 42percent (N10.7billion) to the Group’s Profit Before Tax following the increase in local demand and improved export operations.
The Group’s strong operating performance was also supported by the increase in CAPEX investments from N10billion to N33billion and enhanced sourcing of local raw materials during the harvest period in comparison to the previous year, evidencing strong focus on expansion while maximizing growth prospects.
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As part of its expansion plans to meet growth demands, the Group installed a new pasta line, concluded the construction of a soya plant in Agbara, and purchased sixty new trucks during the review period. The Kaduna Feed Mill is near completion and is projected to be operational in May 2022.
The food segment displayed increased momentum in retail, boosting profitability during the quarter. Top line improvement was driven by 18percent volume growth alongside sustained demand in the segment. B2C contributed 34percent to the segment revenue during the quarter.
Commenting on the quarter three (Q3) financials, Omoboyede Olusanya, the Group Managing Director, said: “The Group remains committed to executing its overall long-term strategy to maintain growth and sustain profitability by increasing local content through product innovation across our core value chains, as evidenced by the third quarter’s earnings trend.
In our new operating environment, our increased operational efficiency and accelerated optimization plans have resulted in competitive product offerings and profitability. We will continue to invest in production capacity and make investment decisions that will strategically position the group for the opportunities that will arise from the African Continental Free Trade Agreement.”
