Flour Mills reports N1.5trn full year revenue, profit grows

Flour Mills of Nigeria Plc, a key player in Nigeria’s food and agro-allied sectors has announced its financial performance for the fiscal year 2022/2023.

The company also highlighted its unwavering commitment to local content and capacity development. It achieved impressive topline growth of 32percent in FY22/23 across Food, Agro-Allied, and Support segments, showcasing its unwavering market leadership.

The Group revenue grew by 32 percent to N1.539trillion from preceding year’s low of N1.163trillion. Profit before minimum tax of N42.75billion as against preceding year’s N41.118billion, up by 4percent. The group’s profit for the year rose by 5 percent to N29.504billion from N28.015billion recorded the preceding financial year.

Gross profit rose remarkably by 64percent, reaching N177.1billion. Honeywell came out of the integration phase and delivered a solid profit in fourth-quarter (Q4). The company’s overall profit after tax (PAT) increased by 5percent to N29.5billion with earnings per share growing by 16percent to N7.25.

Agro-Allied segment delivered exceptional performance, with 51percent and 58percent revenue and Profit Before Tax (PBT) growth for the Fertilizer business, respectively.

Oil and fats business achieved a substantial 38percent revenue growth through improved export operations and equipment optimisation. Sugar Segment returned to profitability, marking a remarkable 34percent revenue growth driven by local Sunti Sugar and brand loyalty.

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Flour Mills witnessed strong focus on operational efficiency, supply chain optimisation, and cost management. Flour Mills of Nigeria’s strategic growth opportunities, including the Honeywell Flour Mills Plc acquisition, highlight its determination to create value for shareholders.

Flour Mills of Nigeria’s consistent commitment to operational excellence paid off, as indicated by a 64percent increase in

gross profit, which reached N177.1 billion. Despite substantial hurdles such as rising international food prices, rising input costs, and currency depreciation, FMN’s adaptable approach enabled it to prosper.

The Agro-Allied section experienced remarkable growth, with revenue and Profit Before Tax increasing by 51percent and 58percent, respectively, in the fertilizer industry.

The Animal Feeds and Oil & Fats businesses grew by 14percent and 38percent, respectively, thanks to strategic expansion, collaborations, and cost savings. FMN’s overall impact was strengthened by the Sugar Segment’s successful return to profitability, which was marked by a 34percent revenue increase.

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Boye Olusanya, Group Managing Director/CEO, Flour Mills of Nigeria said “FY 22/23 has been a year of agile business strategy implementation”.

“Our ability to proactively manage both existing and emerging environmental challenges while progressively driving significant development across all our touchpoints is a testament to the Group’s commitment towards the actualization of self-sufficiency in the country and across the continent,” he said.

“Market impediments such as rising international food prices, input cost escalations, and currency devaluation, were effectively managed, thus the Group’s ability to achieve strong financial performance in FY22/23.

“As we continue to act as a source of livelihood for millions of Nigerian families, we would remain committed to significantly investing across our value chain to reduce the nation’s dependency on imported raw materials and externally generated resources,” Olusanya said.