Flour Mills of Nigeria Boosts Performance, Profit Rises
Flour Mills of Nigeria (FMN) Plc and owners of the iconic brand, ‘Golden Penny, today announced its unaudited nine months financial 2021 results, showing a relative increase in revenue, and its bottom line, according to a statement.
The company said continuous product innovation, improved capacity utilization, and effective route to market strategies aided the Group’s outstanding financial performance across its core business segments.
According to the statement, it said 9 months (9M) result demonstrated solid performance across Food, Agro-Allied and Support Segments delivering topline growth of 51% in the third quarter (Q3) and 49% in 9M, behind strong volume growth and mix.
The consumer goods producer stated that persistent good operating performance in the food segment; continuous improvement in the Agro-Allied and Support segments alongside strong volume growth resulted in an impressive profit before tax of N25 billion in 9 months and N9.8 billion in Q3 – up 7% and 8% respectively.
The agro-Allied segment in 9M contributed 42% or N10.7 billion to the Group’s profit before tax following the increase in local demand and improved export operations. On the operational said, the Group’s strong operating performance was also supported by the increase in capital expenditure investments from N10 billion to N33 billion.
The company said it enhanced sourcing of local raw materials during the harvest period in comparison to the previous year, evidencing a strong focus on expansion while maximizing growth prospects.
It said as part of its expansion plans to meet growth demands, the Group installed a new pasta line, concluded the construction of a soya plant in Agbara, and purchased sixty new trucks during the review period.
The Kaduna Feed Mill is near completion and is projected to be operational in May 2022. The food segment displayed increased momentum in retail, boosting profitability during the quarter. Read: Flour Mills of Nigeria CEO Seeks to Rally Shareholders Wealth
Topline improvement was driven by 18% volume growth alongside sustained demand in the segment, the company said in the statement, adding that B2C contributed 34% to the segment revenue during the quarter.
Commenting on the result, Omoboyede Olusanya, the Group Managing Director, said: “The Group remains committed to executing its overall long-term strategy to maintain growth and sustain profitability by increasing local content through product innovation across our core value chains, as evidenced by the third quarter’s earnings trend.
“In our new operating environment, our increased operational efficiency and accelerated optimization plans have resulted in competitive product offerings and profitability. We will continue to invest in production capacity and make investment decisions that will strategically position the group for the opportunities that will arise from the African Continental Free Trade Agreement”, FMN Chief Executive said.
#Flour Mills of Nigeria Boosts Performance, Profit Rises
