Flour Mills of Nigeria Reports ₦5.4B Profit, Up 10% On Revenue Of ₦233.7B

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Flour Mills of Nigeria PLC Finishes Strong With A Record 184% Growth In After-Tax Profit

Flour Mills of Nigeria Plc (Flour Mills or FMN), Nigeria’s leading integrated foods and agro-allied Group, owners of the iconic food brand — ‘Golden Penny,’ today announced its Q1 results for the year 2021/22 showing consistent strong performance with strong revenue growth and Profit After Tax increasing by 10% (YoY) to N5.4 billion.

Key Highlights:

  • Flour Mills of Nigeria’s revenue was N233.7 billion, compared to N154.6 billion in Q1 2020/21 (51% – YoY growth) – performance was impressive across all business segments underpinned by sustained demand in Agro-allied, particularly in our Edible Oils and Fertilizer businesses, and continued improvements in the Food segment.
  • The Group’s Profit Before Tax was N7.3 billion, compared to N6.5 billion in Q1 2020/21 (12% – YoY growth). Volume and revenue continued to appreciate despite increases in international food prices and input costs during the review period.
  • Flour Mills of Nigeria’s Profit After Tax was N5.4 billion, compared to N5.0 billion in Q1 2020/21 (10% – YoY growth).
  • Strong B2C products continue to drive value across the value chains inspired by continuous product innovation to meet customer needs with a focus on local content.

Operational Review

Despite the current challenges in the operational climate, Flour Mills of Nigeria maintained an impressive performance with robust revenue growth and profit improvements across all segments.

Flour Mills of Nigeria PLC Finishes Strong With A Record 184% Growth In After-Tax Profit

Our food business continues to develop as a result of strategic decisions and investments in route to consumer redistribution, including further investments in vans, automation of redistribution performance tracking, and improved dealer inventory management.

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In the Agro-allied division, the oils & fats value chain is seeing strong revenue growth driven by export sales, while volumes in the fertilizer segment have increased as a result of the extension of blending plants in Bauchi State and a significant increase in the number of dealers onboarded during the quarter.

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

“The first-quarter result shows a strong start to the year and a promising indication of the business’s future as we pursue our strategy of operational efficiency and long-term growth. I am particularly pleased that we achieved an amazing topline growth and remained profitable, with Profit Before Tax increasing by 12% and Profit After Tax increasing by 10%.

I envision even more organic growth across the group, fueled by our expanding ethos of putting consumers at the heart of our business. As we continue to execute our long-term strategy of excellence-driven growth, I am optimistic that we will meet our year-end growth targets while improving operating efficiency, lowering finance costs, and ultimately increasing shareholder wealth.”