FMN records 33% growth in revenue to N508.3bn
Flour Mill of Nigeria has reported strong revenue growth of 33 percent year-on-year to N508.3 billion at the end of Q2 23/24. The key factor contributing to the growth in revenue are revenue from food segment, Sugar segment, the Agro Allied Segment
However, the breakdown reveals that revenue generated from the Food segment remained the largest contributor, generating 68 percent of Q2 revenues. Food revenues grew 50 percent driven by volume growth in pasta, noodles, and other B2C categories.
The Sugar segment saw a 67 percent revenue increase owing to higher sales of brown sugar and strong base growth. The Agro-allied segment recorded a 28 per cent drop in revenues due to lower fertilizer sales.
Strong cash generation continued with cash balances up 262 percent year-on-year to N214.2 billion while Gross profit grew 53 percent to N55.2 billion.
The Group reported a profit of N1.2 billion, which is up versus last year, with a profit after tax of N0.8 billion.
FMN is setting up a dedicated power company, along with other initiatives, to optimize costs and boost competitiveness.
Operational Review
Flour Mills of Nigeria Plc (FMN) reported its financial results for H1’24, showing strong revenue growth of 34 percent year-on-year to N964.6 billion. Gross profits rose 53 percent to N105.5 billion for the period ending September 30th, 2023.
These results were achieved despite challenging market dynamics and unfolding global events like inflationary strains and the aftermath of COVID-19 showing the strength of the Group’s business model and underscoring the Group’s ability to adapt to evolving market conditions while delivering value to its stakeholders.
The Group’s main revenue driver for Q2 23/24 was its Food segment, which grew by 50 percent and was driven by pasta, noodles, and semolina. The Sugar business saw a 67 percent increase in revenue, attributed to increased demand for brown sugar and solid base demand.
FMN continued its strong cash generation, with cash balances soaring by an impressive 262 percent year-on-year, reaching N214.2 billion. This financial strength provides the company with the agility to reinvest in its operations and explore strategic growth opportunities.
In the face of Nigeria’s economic challenges, FMN’s ability to maintain growth and deliver value to its stakeholders is still based on its strategic positioning and careful financial management.
Beyond achieving these financial results, FMN maintains a strong commitment to contributing to Nigeria’s economic development. The company’s prospects in the PowerCo setup, is set to enhance expansion plans and operational capabilities, create jobs, and stimulate growth, for the betterment of the Nigerian economy.
Group Managing Director/Chief Executive Officer of FMN, Mr. Boye Olusanya, expressed his optimism for the future, stating, “We are excited about the potential for Q2 23/24 and the foreseeable impact of this financial growth for the organisation. As we navigate through emerging marketing challenges, we will continue to work with all our stakeholders in driving the Group’s vision and propagating a sustainable business.”
