The Flour Mills of Nigeria (Group) announces a revenue of N299.44 Billion in its unaudited 2017 half-year report. The figure is a 17% increase from N255.30 billion for the same period the previous year. The Report also shows a profit before tax at 13.48 Billion and profit after tax at 9.36 Billion a significant increase from 8.88 Billion and 6.46 billion respectively for the previous year.
The Flour Mills of Nigeria (Company) also recorded a 16% increase in revenue of compared to the same period last year in 2016. It also achieved a 51% increase in Profit compared to same period last year.
Commenting on the results, the Group Managing Director, Paul M. Gbededo, stated, “Our half-year results show continued growth through most segments of our business, especially in the food business, delivering strong top and bottom line financials in line with our objectives. The Group recorded growth from volume and product mix. This growth was despite what continued to be challenging business environment. Overall, the business shows an impressive performance in the first half of the year. We are positive that we are on track to meet our growth targets for the remaining part of 2017/18 financial year.”
Based on the Operational review, the Food business value chain has an increase of 40bn of its group’s turnover. The Group’s Chief Finance Officer, Mr. Jacques Vauthier, said that the Management of the Company is confident that this sector will record even stronger performance as the year progresses. In his words, “to this end, we are enhancing our marketing activities to push the brand’s presence into newer outlets while strengthening present market share.”
Mr. Sadiq Usman, Head of FMN Group Corporate Business Development said that for the Agro-allied division, the Group’s focus will remain on developing competencies and improving execution capacity to backwardly integrate its core value chains; sugar sweeteners, edible oils, feeds & proteins and cassava starches. He further stated: “the Group will leverage its significant resources and continue to build the capacity of local farmers and farming groups, who are an integral part of our strategy to develop sustainable, locally-focused supply chains.”
As part of a strategic measure to consolidate operations, create value for shareholders and enhance administrative and operating efficiencies, the company in Q2 2017, announced the completion of a merger and absorption of Golden Penny Rice Ltd, a wholly owned subsidiary into Flour Mills of Nigeria Plc. It is expected that the restructuring will meaningfully improve the synergies of the Group, reduce costs and improve the competitiveness of the company’s products, with the aim of advancing the profitability of the Group.
The Company is in the process of issuing the first tranche of the Shelf Registered Rights Issue fundraising program. The program which was registered in 2016 is to raise up to N40 Billion in equity funds. In addition, the CFO informed that the Company has started the registration of a N70 billion Medium-Term Notes program to refinance debts and lower the cost of borrowing.
Despite the challenging economic realities, FMN Group’s commitment to feeding the nation has led to an impressive and continuous growth in most segments of its business as revealed by the unedited half-year results.