Flour Mills of Nigeria reports 17% increase in PBT to N6.4bn


By Kayode Tokede

Golden Penny on Monday announced its unaudited first quarter (Q1) results for the June 30, 2020 showing solid and consistent growth.

The flour processing company reported Profit Before Tax (PBT) was N6.4billion, compared to N5.5billion in Q1 2019, 17 per cent YoY growth.

Profit After Tax increasing by 17 per cent to N4.9billion, primarily behind strong growth in its agro-allied division and local value-added products plus effective cost control.

Flour Mills of Nigeria’s revenue increased by 15 per cent to N154.6billion from N134.7billion in Q1 2019, while Gross profit closed Q1 2020 at N25.5billion from N16.47billion in Q1 2019.

The group’s operating Ratio was 4.5 per cent, compared five per cent. Lower operating ratio compared to the last previous two years.

From the financial position, Total assets closed June 30, 2020 at N475.65billion from N432.45billion reported in March 31, 2020.

The result for the first quarter revealed a remarkable performance as the Group starts the year strong and builds on the growth trends recorded in the Q4 2019/2020 financial year.

The company secretary/Director, legal services, Mr. Umolu Joseph in a statement said, “In line with strategy, our business remained resilient and continued to deliver value for shareholders while focusing on organic growth across all segments with continuous focus on our Agro-allied division and local value add with consumer-centric programs.

“Our Agro-alled business recorded solid improvements as part investments and increased focus on local inputs through both in-grower and out grower programs yield desire results.

“Profit Before Tax was N2.1billio, compared to a loss of N0.2billion in the previous year.”

Commenting on the results, the Group Managing Director, FMN, Mr. Paul Gbededo, said, “The year 2020/21 is unique in many respects, as the terrible outbreak of COVID-19 continues to affect the world in unprecedented ways.

“Recognising how important our business model is to the food value chain in Nigeria, we are honoured to have been able to take an active role in the fight against this virus, by ensuring our operations remained unhindered to produce food for Nigerians at such a trying time.

“While the first quarter of the financial year is perhaps one of the moist complex periods facing businesses in Nigeria and across the globe, I am happy that our business has continued to explore newer opportunities to create value and wealth for shareholders.

“Our earnings and profit After Tax figures both show impressive growth following strategy and expected projections.

“As we look into the future, we are positive that despite unprecedented prevailing uncertainties for businesses, we will remain focused on increasing operational efficiency with accelerated plans for cost optimisations across the Group to ensure profitability in the new operating environment during and post- COVID-19,” he added.