MON, 01 AUG, 2022-theGBJournal| Flour Mills of Nigeria Plc, Nigeria’s leading integrated food business and agro-allied group, published its unaudited financial statements for the first quarter of 2022 weekend, reporting topline growth of 45% in Q1’22.
Flour Mills of Nigeria Plc showed solid performance across all segments (Food, Agro-Allied Sugar, and Support Segments), which was supported by volume growth and a favourable mix.
Gross profit reached N33.2 billion in Q1-22, up from N25.7billion in Q1-21.
Investment in route to customer redistribution and improved customer interface engagement resulted in N7.3bn Profit Before Tax up by 1% on an absolute basis and 15% on an operational basis when excluding the transitional costs.
The company’s sugar segment saw a 64% revenue with stabilized trading environments and strong demand for brown sugar which is locally produced in Sunti.
The animal feeds business attained 21% revenue growth, driven by investments in logistics infrastructure and farmer training extension services across the country.
Commenting on the result, Omoboyede Olusanya, the Group Managing Director, said: “Despite the challenging socio-economic environment, we continue to deliver strong business performance with resilience and operational excellence. Our increased operational efficiency with accelerated plans for our supply chain optimization, content localization, and cost optimization across our business segments has helped to cushion the sharp rise in the cost of raw materials. We would always be committed to our purpose of Feeding the Nation, Everyday through our offerings of quality products and services”.
He said the Group is dedicated to achieving sector strategic growth opportunities, both organic and inorganic with keen determination as they continue to create value for their shareholders.
The Group completed the acquisition of Honeywell Flour Mills Plc (HFMP) in May 2022 and the transitional process resulted in an N-1.1bn deficit for HFMP and N0.4bn one-off transactional cost for FMN.
Earnings before tax growth net of transitional costs would have been 15% compared to the previous year.
‘’The Group is very comfortable with the Honeywell investment, and the long-term projections are very positive after having managed the operations since the middle of May,’’ management said.
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