Flour Mills of Nigeria (FMN) Plc has reported strong revenue growth of 33% year-on-year, reaching N508.3 billion in the second quarter (Q2) ending on September 30, 2023.
This was revealed in the company’s unaudited results for the reviewed period, released on the Nigerian Exchange Limited.
According to the company, it recorded a gross profit growth of 53 percent to N55.2 billion. The Group reported a profit before tax of N1.2 billion, an increase from the previous year, with a profit after tax of N0.8 billion.
The Food segment remained the largest contributor, accounting for 68 percent of Q2 revenues. Food revenues grew by 50 percent, driven by volume growth in pasta, noodles, and other B2C categories.
The Sugar segment saw a 67 percent increase in revenue owing to higher sales of brown sugar and a strong base growth. The Agro-allied segment, on the other hand, recorded a 28% drop in revenues due to lower fertilizer sales.
Strong cash generation continued, with cash balances increasing by 262 percent year-on-year to N214.2 billion.
The Company stated that these results were achieved despite challenging market dynamics and unfolding global events like inflationary strains and the aftermath of COVID-19, showcasing the strength of the Group’s business model and its ability to adapt to evolving market conditions while delivering value to its stakeholders.
According to FMN, the main revenue driver for Q2 23/24 was its Food segment, which grew by 50 percent and was driven by pasta, noodles, and semolina.
The sugar business saw a 67 percent increase in revenue, attributed to increased demand for brown sugar and a solid base demand.
“FMN continued its strong cash generation, with cash balances soaring by an impressive 262% year-on-year, reaching N214.2 billion. This financial strength provides the company with the agility to reinvest in its operations and explore strategic growth opportunities.”
It added that “in the face of Nigeria’s economic challenges, FMN’s ability to maintain growth and deliver value to its stakeholders is still based on its strategic positioning and careful financial management.”
“Beyond achieving these financial results, FMN maintains a strong commitment to contributing to Nigeria’s economic development. The company’s prospects in the PowerCo setup are set to enhance expansion plans and operational capabilities, create jobs, and stimulate growth for the betterment of the Nigerian economy.”