Flour Mills of Nigeria release positive audited financial performance report, finishes strong with a record 184% growth in after tax profit
FMN (Flour Mills of Nigeria PLC) the largest Agro-Allied and food group on the Continent of Africa, recently announced its audited financial performance for the 2019/2020. The report released on the 3rd August to the Nigerian Stock Exchange, highlights a number of remarkable achievements despite the prevailing economic headwinds and difficult operating terrain in Apapa, Lagos.
In line with the group’s management focus of developing Nigeria’s self-sufficiency within the agricultural value chain, FMN has invested heavily (over 150 billion Naira) in recent years to ensure Nigeria has the infrastructure and capabilities to create its own raw materials to support the food sector.
This is now clearly paying off as the Agro-allied segments saw strong profit growth in Oils and Fats and Proteins, with a Gross profit doubling both segments on an annual basis.
The Group realized a revenue growth of 9% (YoY) to N574 billion naira, Profit Before Tax also increased by 72% (YoY) to N17.5 billion Naira and a whopping 184% (YoY) Profit After Tax increase to 11.4 billion Naira.
Commenting on the result, Paul Gbededo, the Group Managing Director said: “The 2019/20 financial year was a remarkable year for our Group and I am really pleased with the result.
Our Profit Before Tax saw a remarkable increase of 72% to 17.5 billion Naira, while our Profit After Tax nearly tripled from 4.0 billion Naira last year to 11.4 billion Naira in the current year. This is partly attributable to the improved performance of our Agro Allied Businesses and in line with our strategy to continue to grow the wealth of our shareholders.”
He further stated: “We will remain focused on increasing operational efficiency within the group as we continue to implement our accelerated cost optimization plans across all businesses to ensure profitability in the new operating environment.”
Flour Mills of Nigeria Plc was incorporated in September 1960 as a private limited liability company and commenced operations in 1962 with an installed flour milling capacity of 500 metric tonnes per day. In 1978, Flour Mills of Nigeria was converted to a public limited liability company and its shares were subsequently listed on The Nigerian Stock Exchange. Today,
Flour Mills of Nigeria is the largest flour milling company in Nigeria, with an installed flour milling capacity of approximately 12,000 metric tonnes per day. The Company continuously strives in its purpose to “Feed the Nation, Everday” through its five core food value chains: Grains, Sweeteners, Oils and Fats, Proteins and Starches. The Company is increasing local content in a substantive and sustainable way with its “farm-to-table” model in order to further mitigate reliance on imports and exposure to external volatility in the food business.
Flour Mills of Nigeria remains Nigeria’s largest and oldest food and agro allied company, with a broad product portfolio and a robust pan-Nigerian distribution network. The Company’s three major business segments are constantly evolving to meet the diverse needs of all stakeholders.
