Flour Mills surpasses expectations with robust Q1 financial performance
Flour Mills of Nigeria Plc has made a remarkable comeback, reporting a significant 67 per cent increase in revenue to N763.2bn for the first quarter ending June 30, 2024. .
This impressive growth marks a substantial rise from the N456.4bn reported in the same period last year.
The company’s gross profit also saw a substantial increase of 73per cent, reaching N86.9bn. Notably, Flour Mills reversed the previous year’s loss in Q1, achieving a net profit of N7.4bn. This return to profitability reflects a rebound to levels seen in the past two years, underscoring the company’s resilience and strategic management.
Operational efficiency played a crucial role in this recovery. The firm’s operating profit soared to N49.9bn, supported by robust revenue growth and effective cost management. This strong financial footing was further bolstered by a solid cash position of N159bn, equipping the company to explore new growth opportunities and mitigate economic risks.
Group Managing Director/Chief Executive Officer Boye Olusanya credited the company’s agility and strategic focus amid challenging economic conditions. He highlighted the firm’s adeptness in managing inflationary pressures and foreign exchange volatility, key challenges facing the Nigerian economy.
He said, “Our Q1’24/25 results demonstrate FMN’s ability to deliver solid performance despite significant headwinds.
We’ve shown remarkable agility in navigating the challenging macroeconomic environment, including persistent inflation and exchange rate volatilities.”
Olusanya emphasized the exceptional performance of the agro-allied segment, which experienced a 68per cent growth.
This was driven by strong results in the fertilizer and oil and fats sectors, alongside improved capacity utilization.
Chief Finance Officer, Anders Kristiansson added that the diverse business model of Flour Mills has been instrumental in maintaining steady growth and delivering value to stakeholders.
“Our Q1’24/25 results reflect our commitment to creating value for our shareholders. The significant strengthening of our profitability, coupled with our strong cash position, provides us with the flexibility to invest in growth opportunities and navigate economic uncertainties.”
As Flour Mills of Nigeria continues to adapt to the evolving market landscape, it remains committed to its mission of “Feeding and Enriching Lives, Every Day,” while focusing on long-term shareholder value through strategic investments and operational excellence.
