Flour Mills of Nigeria Plc (FMN) has announced a performance in the third quarter of the 2023 financial year, driven primarily by its consumer food segment and bolstered by strategic investments in affordable, regionally targeted brands.
The company’s flagship brand, Golden Penny, also showed solid growth, contributing to the overall success of the quarter.
In a recent press release, Boye Olusanya, FMN’s group managing director/CEO, expressed his satisfaction with the results. “The success and sustenance of the FMN Brand is a commitment to our shareholders and stakeholders,” he said. “Our focus remains on enhancing our global competitiveness and ensuring FMN’s resilience in the face of environmental changes. The recent launch of our Power Company is a step towards transforming our operational efficiencies.”
Key highlights of the quarter include a 58 percent increase in year-to-date volumes for Auntie B Pasta, Semovita, and MaiKwabo Pasta, compared to the previous year. This growth is a testament to the company’s effective marketing and product quality strategies. Furthermore, FMN’s gross profit and operating profit improved significantly, showcasing operational efficiencies and effective management of pricing strategies.
Anders Kristiansson, FMN’s chief finance officer, also commented on the company’s performance. “Our financial and operational resilience is evident in our consistent growth,” he noted. “As we continue to drive efficiencies across the group, we are confident in our ability to deliver sustained value, in line with our strategic goals.”
Despite a volatile economic environment and foreign exchange challenges, FMN’s Profit Before Tax in Q3 rose by 29% to N8.5 billion. The company’s focus on mix, operational efficiencies, and pricing strategies played a crucial role in moderating the impact of exchange rate fluctuations.
The FMN Group’s Agro-Allied segment also saw robust growth, particularly in the Animal Feeds business and an increase in export sales in the Oils and Fats business. Overall, the Food division, which accounts for over 60 percent of the Group’s revenue, expanded sales by 39 percent, further highlighting FMN’s strong market position.