January 26, 2021 – Flour Mills of Nigeria Plc, Nigeria’s leading integrated food business and agro-allied group, owners of the iconic food brand – ‘Golden Penny,’ today announced its Q3 results for the year 2020/21 showing resilience and continued growth in all segments.
Key Highlights
- The Group’s long term strategy of driving its Food and B2C business while investing in Agro-allied and backward integration continued to generate strong returns.
- The Group posted a 31% revenue growth in Q3 2020/21, and year to date at 31st December 2020, respectively, with all segments growing by 25% plus. Q3 revenue was N200 billion and year to date revenue at 31% December 2020 was NSSS billion.
- Profit Before Tax at the year to date December 2020 of N23.6 billion was ahead of the full year 2019/20 Profit Before Tax of N17.5 billion. This was primarily driven by the investments in Agro-allied yielding returns, together with solid growth in the Food and Sugar segments.
- NSO billion of cash was generated from operations, and net debt decreased by 31% to N66 billion.
- N29.9 billion bonds issued at 5 and 7-year tenors with coupon rates at 5.50 and 6.25% respectively.
Operational review
Strongly committed to our culture of building value for our customers and Nigeria as a whole, our growth demonstrates our dedication to meet the country’s need and drive towards sustainable economic growth.
The Q3 2020/21 results show significant improvements across all key segments and reiterate our commitment to meeting the growing needs of our consumers, as we continue to deliver sustainable value for investors.
Our businesses in the agro-allied segment continue to show impressive growth in line with projections across the oils and fats, protein and starch value chains.
In the food segment, our volume-driven growth strategy remained underpinned by the resilience of our portfolio and the agility of our teams to adapt to the changing market dynamics. To broaden our reach, we have continued to invest in innovation by developing new products and strengthening our route to market.
We recently completed the issuance of our N29.9bn bond (Series 4, Tranches A and 8B) in December 2020, which was oversubscribed by 405% within the price guidance. The new bond (N29.9bn) with the tenor of 5 and 7 years was issued at 5.50% and 6.25% respectively. The issue was strongly supported by the institutional investor community.
Management remains focused on increasing operational efficiency with accelerated plans for cost optimizations across all business segments in the group to ensure competitive product offerings and profitability in the new operating environment.
Commenting on the result, Boye Olusanya, the Group Managing Director, said:
“Our ability to stay resilient, while growing organically in a rapidly changing environment, validates our investment strategy, and the strength of our diversified portfolio.
“We are keeping in stride with the government’s vision to ensure food sufficiency and have delivered another truly remarkable result this year. Our priorities remain the same = feeding growth and productivity in Nigeria’s food and agro-allied sector, feeding communities with empowerment, and feeding Nigeria’s future with significant backward integration projects.“