Flour Mills Nigeria Plc Reports a 126% Increase in Profit to N25.72Bn

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Flour Mills of Nigeria: Revenue from the sales of Sugar increased by 29.47% to ₦58.19bn

Flour Mills of Nigeria Plc (FMN) demonstrates a strong performance and resilience in a challenging year to capture first signs of economic recovery with accelerated Q4 growth vs last year (Q4’21 vs Q4’20: Revenue +44%, EBT +158% and PAT +211%).

The Group delivers impressive FY top-line growth across all business segments with an average revenue growth of 34%, led by growth in Agro-allied combined with investments in route-to-market and accelerated expansion in the B2C segments. Profit After Tax reached N25.7 billion, up from N11.4 billion in 2019/2020 (127% YoY Growth).

Flour Mills Leadership is consistently focused on strong discipline in operational and capital efficiency by increasing local content in group-wide supply chains and supporting backward integration programs across all value chains.

Flour Mills of Nigeria: Revenue from the sales of Sugar increased by 29.47% to ₦58.19bn

Acceleration in B2C segments with new product offerings such as Auntie B Spaghetti Slim and Spaghetti, as well as the introduction of new SKUs in key categories, along with investments in regional distribution.

Successfully issued N3Obn corporate bond with a tenor of 5 and 7 years at 5.50% and 25% respectively to replace expensive short-term facilities.

Operational Review

The Group achieved impressive topline growth for the year, aided by gains from our Agro-allied turnaround strategy. Our backward integration program has been expanded across all value chains, including strategic partnerships with smallholder farmers, resulting in an average revenue gain of 34% across all business sectors.

Our food business grew organically, driven by constant product innovation and transformation ‘new markets, as well as operational efficiency through route-to-market investments and rapid expansion in the B2C sectors.

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We successfully issued N30 billion incorporate notes with tenors of 5 and 7 years at 5.50 percent and 6.25 percent, respectively, to replace costly short-term facilities.

Commenting on the result, Omoboyede Olusanya, the Group Managing Director, said:

“Flour Mills emerges from the prevailing COVID-19 environment as a stronger, more resilient, flexible, and confident business as a result of the collective strategic actions made over our 60-year history. I want to thank all our employees for their patience and hard work as we consistently adapted to the year’s challenges and invested significantly in our purpose of feeding the nation every day.

FMN is now harvesting the fruits of these efforts and remains committed to braving a continuously uncertain environment with cautious optimism, innovation, portfolio advancement and other strategies outlined in our recent sustainability report.”