Flour Mills of Nigeria Sales Revenue Crosses N1 Trillion
Following its acquisition of Honeywell, Flour Mills of Nigeria (FMN Plc) has joined the trillion naira revenue gang in the local bourse, according to its financial scorecard for the third quarter of 2023.
Detail shows that the food producer sales jumped to N1.114 trillion for the first time, demonstrating sustained momentum across all business segments, up 35% above N825 billion recorded in the comparable period in 2022, the company said in a statement.
The fast-moving consumer goods operator said the growth in its topline was driven by Food, Agro-Allied and Sugar all growing between 34 to 39% respectively.
FMN’s gross profit reached N103 billion in nine months of the financial year 2023, representing an increase of 29% compared to a similar period in 2022. On a quarterly basis, the food producer did 33%.
Operating profit grew by 28% in 9m-2023, supported by a 32% growth quarter on quarter. FMN said its total results were affected by the integration of Honeywell Flour Mills Plc (HFMP) integration.
Management explained that Honeywell’s integration into the group has been ongoing since the takeover on May 12th, 2022. As anticipated, the acquisition involved some initial integration costs and Honeywell posted a loss of N10.3 billion by at the end of December 2022.
“Honeywell is well on track to realize and exceed the anticipated benefits from the acquisition”, Flour Mills of Nigeria stated. It added that profit performance for FMN excluding HFMP was in line with last year, during a somewhat turbulent quarter 3 showing the strength of the overall underlying business model.
The detail showed that FMN’s food business recorded 36% top-line growth largely due to continued focus on retail expansion and proactive pricing to cushion steep input costs.
“Revenue in our Agro-Allied business grew by 39% driven by robust performance across its categories”, management said in a statement.
According to the group, the Fertilizer business recorded a 64% growth in revenues and 82% profit growth driven by the commissioning of a new fertilizer blending plant in May 2022.
Similarly, the oils and fat business grew by 54% driven by increased volumes due to intensified milling activities while the animal feeds business reported 20% topline growth owing to increased product availability.
Golden Sugar recorded an impressive 34% revenue growth; this was achieved due to increased volumes, various customer engagement and the popularity of our locally produced brown sugar.
Commenting on the result, Boye Olusanya, the Group Managing Director, said: “The Q3 earnings trend is a clear demonstration of the Group’s commitment to carrying out its overall long-term strategy of maintaining growth and sustaining profitability by significantly investing in the development of local content through product innovation across our core value chains”.
“Also, as is established by the significant increase in revenue and growth from the Agro-allied category of the Group’s touchpoints, we are committed to achieving economies of scale in food production via crop-specific value chain by increasing productivity and ultimately driving the nation’s attainment of food self-sufficiency”, Olusanya added. # Flour Mills of Nigeria Sales Revenue Crosses N1 Trillion
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