The board of Flour Mills of Nigeria Plc has recommended the payment of N5.74 Billion to shareholders of the company as a dividend for the financial year ended June 30, 2020.
The cash reward to its shareholders, amounting to 1.40 NGN per ordinary share of 50 kobo, would be paid to those whose names appear in the register of members as at the close of business on September 18, 2020, a disclosure from the organisation’s Twitter page stated.
The director’s proposal is that dividend amount to 5.74 Billion Naira be declared. The dividend is to be paid by Monday, September 14, 2020 to shareholders registered in the books of the company by Close of Business on Friday, August 14, 2020.
— @TheFMNgroup (@theFMNGroup) September 10, 2020
The director’s proposal is that dividend amount to 5.74 Billion Naira be declared. The dividend is to be paid by Monday, September 14, 2020, to shareholders registered in the books of the company by Close of Business on Friday, August 14, 2020.
Flour Mills of Nigeria Plc reported rather impressive figures for its FY’20 financial year. The Group recorded growth on both its topline and bottom line. Specifically, revenue grew by 9% year-on-year (YoY) from N527.41bn in FY’19 to N573.77bn in FY’20.
Some of the factors that accounted for the revenue growth include the introduction of new products with improved packaging and accelerated distribution.
Flour Mills of Nigeria‘s revenues grew by 9% (YoY) to N574 billion Naira. Profit Before Tax increased by 72% (YoY) to N17.5 billion Naira, whereas Profit After Tax increased by 184% (YoY) to 11.4 billion Naira.
- Group Revenues was N574 billion, compared to N527 billion in 2018/19 Full-year (9% YoY Growth)
- Profit Before Tax was N17.5 billion, compared to N10.2 billion in 2018/2019 (72% YoY Growth)
- Profit After Tax was N11.4 billion Naira with a 184% YoY Growth
- Proposed final dividend increase of 17% to N1.40 for every ordinary share of 50 kobo. This is subject to shareholders’ approval at the company’s AGM.
Notably, the Group sold more of its high-margin brands, relative to what was obtainable in the previous year where the Group downtraded its products. In our view, we believe that the ability of the Group to successfully sell its higher-margin brands was on the back of an increased market share during the year, following the land border closure that limited the influx of cheap smuggled competing products in the market.