Flour Mills finishes year strong with record 184% profit growth

Flour Mills of Nigeria Plc, Nigeria’s leading integrated food business and agro-allied Group, on Monday August 3 announced its audited 2019/20 financial results, showing remarkable growths in all three key segments of Food, Agro-Allied and Sugar.

The results

The Group’s revenues grew by 9 percent year-on-year (YoY) to N574 billion. Profit Before Tax (PBT) increased by 72percent (YoY) to N17.5 billion, whereas Profit After Tax increased by 184percent (YoY) to N11.4 billion.

Key highlights of the result showed Group Revenues was N574 billion, compared to N527 billion in 2018/19 Full year (9percent YoY growth); Profit Before Tax was N17.5 billion, compared to N10.2 billion in 2018/2019 (72percent YoY growth); Profit After Tax was N11.4 billion with a 184percent YoY growth. Proposed final dividend represents increase of 17percent to N1.40 for every ordinary share of 50 kobo. This is subject to shareholders’ approval at the company’s AGM.

READ ALSO: Flour Mills of Nigeria: Reaping investment benefits as Agro-allied business reached profitability(Opens in a new browser tab)

Operational review

Despite prevailing economic headwinds and the difficult operating terrain of Apapa, the Group had a prosperous and successful year. In line with management’s strategy to continue to stimulate organic growth in all segments of the business, Agro-Allied division reached profitability in 2019/20 behind the consistent and focused investments that have been made in this locally sourced segment over the last few years. The Agro-allied segments saw strong profit growth in Oils and Fats and Proteins with Gross Profits more than doubling in both segments on an annual basis.

Our Food business recorded accelerated growths within the business-to-consumer (B2C) segments in line with projections, as our focus to improve customer experience saw the introduction of a range of new products and our strategic marketing and promotional activities to win over new market segments yielded the desired result.

Management speaks

Commenting on the result, Paul Gbededo, the Group Managing Director, said: “The 2019/20 financial year was a remarkable year for our Group and I am really pleased with the result. Our Profit Before Tax saw a remarkable increase of 72% to 17.5 billion Naira, while our Profit After Tax nearly tripled from 4.0 billion Naira last year to 11.4 billion Naira in the current year. This is partly attributable to the improved performance of our Agro Allied Businesses and in line with our strategy to continue to grow the wealth of our shareholders.”

He further stated: “We will remain focused on increasing operational efficiency within the group as we continue to implement our accelerated cost optimization plans across all businesses to ensure profitability in the new operating environment.”

Flour Mills plans bond issuance to refinance existing debt

Get real time updates directly on you device, subscribe now.