Flour Mills grew nine-month profit by 9.6% with record revenue
Flour Mills of Nigeria, the country’s biggest flour miller by market value, saw a 9.6 percent jump in profit as revenue from its businesses hit a record-high.
The leading provider of food and agricultural products and services saw profit rise to N17 billion in the nine-month period ended December 2021 compared to N15.5 billion in the same period of 2020.
The miller’s revenue jumped 48.5 percent to N824.9 billion in the nine-month period of 2021, up from N555.3 billion in 2020. This is the highest the company has recorded.
The company’s revenue comes from 4 main businesses; Food, Agro-allied, Sugar value chain and support services.
Support services jumped 62.1 percent to N25.3 billion, food grew 55.4 percent to N534.4 billion, Agro-allied and the Sugar value chain grew 48.9 percent and N19.6 percent respectively.
Flour mills’ shares are up 0.70 percent to N28.55 percent since the year began.
“Similar to the performance over the last few quarters, our business has been able to sustain the strong performance in spite of the increasingly difficult terrain and uncertainties,” the company said in its financial statement.
“Management remains optimistic that with continued efforts in sales and marketing activities geared at boosting our top line while keeping the costs under control we should be able to sustain the good performance for the remaining period,” the company said in its financial statement,” they said.
The company struggled to keep costs down as sales cost jumped 54 percent to N744.7 billion compared to N482.8 billion in the periods under review.
Gross profit grew by 10 percent to N80.2 billion from N72.4 billion in the nine-month period of 2020.
The company’s finance cost rose 8 percent to N16.1 billion in the nine-month period of 2021 compared to N14.9 billion in 2020 while finance income grew 8 percent to N16.1 billion in the nine-month’s period of 2021.
Investment income plunged to N935 million from N3.32 billion in 9M’ 2020.
The consumer goods firm saw its selling and distribution expenses rise 42.8 percent to N9.64 billion in 9M’21 compared to N6.75 billion in 9M’ 2020.
Administrative expenses also jumped 17.4 percent to N21.5 billion from N18.3 billion in the periods under review.
The miller recorded a net operating profit of N40.4 billion in 9M ’21, up 14.7 percent from N35.2 billion recorded in the nine-month period of 2020.
Earnings per share rose 3.85 percent to N400 per share in 9M’21 compared to N385 per share in 9M’20.
Tax expense grew 2.4 percent to N8.2 billion in the nine-month period of 2021 compared to N8 billion in the same period of 2020.
Flour Mill of Nigeria is an industry leader with a market share of 32 percent according to a KPMG wheat sector report and controls over 70 percent of the market; it is also currently the world’s second-largest flour miller and doubles as Nigeria’s largest importer of soft red wheat, hard red winter, and hard white wheat type.