Flour Mills returns to profit in H1’24 performance

Flour Mills of Nigeria Plc (FMN), Nigeria’s leading Food and Agro-allied company, has announced its financial results for the half-year (H1) ended September 30, 2024.

The Group’s Profit Before Tax (PBT) returned to historical levels with N19.7 billion in H1’24, from a loss position in H1’23.

While demonstrating a solid performance and resilience in a challenging economic environment, the group’s gross profit saw a significant 53 percent increase to N161.1 billion, reflecting good performance in food and sugar.

Operating profit grew by 40 percent to N105.9 billion, driven by operational efficiency and cost optimisation. FMN achieved exceptional revenue growth of 76 percent to N1.697trillion for H1’24, compared to N964.6 billion in the same period last year.

Commenting on the H1’24 results, Boye Olusanya, Group Managing Director/Chief Executive Officer, FMN, said, “At the core of our business operations and commitment is to build a sustainable business that is big in local content development and utilisation”.

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“This commitment is what we leverage as a Group in withstanding both existing and emerging volatility in the business environment. Despite the complex macroeconomic environment, including significant FX volatility and high interest rates, we have maintained solid growth in the H1’24 across all our business segments while managing our costs and operational efficiency,” Olusanya said.

The Food segment recorded a 74 percent increase in revenue to N1.140trillion, with improved profitability driven by optimised material costs. The Sugar segment achieved an 84 percent revenue growth to N274.2 billion.

Speaking on the Group’s financial position, Anders Kristiansson, Group Chief Finance Officer, FMN said, “Our H1’24 results reflect our commitment to maintaining strong financial performance while building resilience”.

“With a robust cash position of N149 billion we have maintained the financial flexibility needed to support our operations and future growth initiatives, despite the increased cost of financing,” Kristiansson said.

Looking ahead, FMN said it remains focused on its strategic initiatives, including new product innovations, cost optimisation, and strategic alliances to foster growth across Africa.

The company maintains a positive outlook while acknowledging the continuing challenges in the macroeconomic environment, and remains committed to its purpose of “Feeding and Enriching Lives, Every day” while creating sustainable value for all stakeholders”.