Flour Mills of Nigeria reports 126% increase in profit to N25.72bn


By Kayode Tokede

Flour Mills of Nigeria Plc (FMN) has reported 126 percent increase in profit after tax to N25.72billion in 2021 audited results for period ended March 31, 2021 as against N11.37billion reported in full year ended March 31, 2020.

The results released on the Nigerian Exchange Limited (NGX) on Wednesday also disclosed 113 percent increase in profit before tax to N37.19 billion in 2021 from N17.5billion reported in 2020.

Also from the profit and loss figures, revenue for the period rose by 34 percent to N771.61billion from N573.77billion reported in prior year audited result and accounts.

The management of FMN to recommended to shareholders at the forthcoming Annual General Meeting the declaration of a total of N6.77billion (2020: N5.74billion) representing a dividend of N1.65 (2020:N1.40) per ordinary share of 50kobo each.

The company in a statement stated that the results demonstrated a strong performance and resilience in a challenging year to capture first signs of economy recovery with accelerated Q4 growth against last year (Q1’21) vs Q4 ’20: revenue gained 44 percent, EBT added 158 percent and PAT rose by 211 percent.

“The group delivers impressive FY top-line growth across all business segments with an average revenue growth of 34 percent, 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 N11.4billion in 2019/ 2020 (127 percent 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.

“Acceleration in B2C segments with new products offerings such a 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 N30billion corporate bond with a tenor of 5 and 7 years at 5.50 percent and 6.27 percent respectively, to replace expensive short-term facilities.

“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 percent across all business sectors.”

Commenting on the results, the Group Managing Director, FMN, Mr Omoboyede Olusanya, in a statement 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.”