FMN reports 38% growth in revenue for H1 23
By Philemon Adedeji
Flour Mills of Nigeria plc has released it unaudited results for the half year 2023, reporting it’s Overall revenue which increased significantly by 38 per cent to N721 billion, propelled by a favourable mix and some exchange related pricing
Result shows strong revenue growth across business segments, despite the challenging macroeconomic environment.
The breakdown of the revenue showed that, the revenue generated from the golden sugar increased in double-digit to 51 per cent and a solid profit growth due to increase in volume and various customers engagement efforts to drive customer loyalty, As the strong revenue growth averaging by 36 per cent across all business segment
Operating performance in the food segment remained solid notwithstanding a challenging environment with increase input prices and some what softening volume base
The gross profit recorded for the period inched weight by 29.2 per cent to N33.2 billion up from 25.7 billion in H1 2022
The group’s operating performance in the Food segment remained solid; profit before tax for Agro-Allied remained at the level achieved the previous year; Sugar segment recorded a significant rebound compared to Q2 2021 as anticipated due to a normalized competitive playing field, increased route to market expansion into both new and rural markets, and increased customer engagement.
The Group is integrating the Honeywell business to realise the synergies anticipated with focus on restructuring the balance sheet to reduce FX exposure and ensure manufacturing stability. This is expected to lead to strong results in the long term.
Commenting on the result and the Group’s strategic imperatives in the years ahead, Mr. Boye Olusanya, the Group Managing Director/Chief Executive Officer, said:
“FMN continues to meet the needs of the consumers with our sustainable route-to-market structure and new product initiatives across our touchpoints. As we can see in the H1 22/23 report, the Sugar segment recorded a significant rebound compared to H1’21/22, a clear demonstration of the Group’s continuous and significant investment in the sugar value chain and across all our key value chains and sectors. As the Group continues to make headway in our backward integration activities through various strategic efforts, we remain committed to feeding the nation, every day.
Also, our investment in product innovation and supply chain optimization was sustained in furtherance of the execution of our long-term strategy. As part of the Group’s strategic roadmap, FMN continues to put in place a business continuity plan to safeguard its supply chain and food production processes to ensure that Nigerians can continue to have access to their daily nourishment”.
