Flour Mills of Nigeria Hits 52-Week High as Investors Sentiment Improves
Flour Mills of Nigeria (FMN) Plc market value increased by about 23% due to latest positioning by investors with interest in consumer goods stock with upside potential.
The fast moving consumers goods company rose to 52-week high on the Nigerian Exchange (NGX) due to improved investors sentiment. FMN Plc returned to profitability in the first quarter of financial 2025 after downbeat earnings scorecards worsened by FX exposure and rising costs.
With expectation that the consumer goods company will maintain earnings uptrend, its share price jerked up by about 23% in the local bourse to settle at N54.50, up from N44.50 at the beginning of the previous week,
At the current market price, investors has now repriced Flour Mills of Nigeria’s 4.1 billion shares outstanding at N223.47 billion, which represents 22.5% surge in its valuation.
In its Q1 2025 earnings result, Flour Mills of Nigeria Plc’s revenue grew by 67.2% year on year to N763.19 billion. Analysts said its revenue growth was driven by price increases across all product segments, while production volumes remained relatively stable.
The company experienced an increase in net losses from its operations to N6.74 billion in Q1 2025, higher than the loss of N3.25 billion reported in Q1 2024,
Overall, Flour Mills’ operating profit increased significantly by 68.4% year on year to N49.92 billion in Q1 2025 from N29.65 billion in Q1 2024.
In the period, FMN reported a surge in finance income, which settled at N1.59 billion in Q1 2025 from N168 million in Q1 2024. However, net loss on foreign exchange liabilities increased by about 25% year on year to N28.07 billion from N22.53 billion in Q1 2024.
Its finance cost was down by 3.3% to N16.07 billion from N16.63 billion in Q1 2024. This brought net finance cost to N42.56 billion in Q1 2025 from N38.99 billion in Q1 2024.
Despite the moderate rise in net finance cost, Flour Mills of Nigeria Plc returned to profitability, reporting N7.36 billion pretax profit in Q1-2025. Its profit after tax came at N6.98 billion in Q1 2025, compared post tax loss of N9.34 billion in Q1 2024. #Flour Mills of Nigeria Hits 52-Week High as Investors Sentiment Improves
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