Tuesday, May 18, 2021

Flour Mills of Nigeria Plc Reports 184% Growth In After-Tax Profit

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Godwin Okaforhttps://naija247news.com
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

Nigeria’s biggest Miller, Flour Mills of Nigeria Plc (referred to as “Flour Mills “or “FMN”), Nigeria’s leading integrated food business and agro-allied Group, today announced its audited 2019/20 financial results, showing remarkable growths in all three key segments of Food, Agro-Allied and Sugar.

The Group’s revenues grew by 9% (YoY) to N574 billion Naira. Profit Before Tax increased by 72% (YoY) to N17.5 billion Naira, whereas Profit After Tax increased by 184% (YoY) to 11.4 billion Naira.

Key Highlights
Group Revenues was N574 billion, compared to N527 billion in 2018/19 Full-year (9% YoY Growth)
Profit Before Tax was N17.5 billion, compared to N10.2 billion in 2018/2019 (72% YoY Growth)
Profit After Tax was N11.4 billion Naira with a 184% YoY Growth
Proposed final dividend increase of 17% to N1.40 for every ordinary share of 50 kobo. This is subject to shareholders’ approval at the company’s AGM.
Operational Review

Despite prevailing economic headwinds and the difficult operating terrain of Apapa, the Grow had a prosperous and successful year.

In line with management’s strategy to continue to stimulate organic growth in all segments of the business, Agro-Allied division reached profitability in 2019/20 behind the consistent and focused investments that have been made in this locally sourced segment over the last few years.

The Agro-allied segments saw strong profit growth in Oils and Fats and Proteins with Gross Profits more than doubling in both segments on an annual basis.

Read Also: Flour Mills to Open Application for N39.9B Rights Issue
Our Food business recorded accelerated growths within the business-to-consumer (82C) segments in line with projections. as our focus to improve customer experience saw lhc

introduction of a range of new products and our strategic marketing and promotional activities to win over new market segments yielded the desired result.

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 Agra 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 provides food and agricultural products and services. The Company offers flour, noodles, pasta, oil and spreads, and sugar, as well as feeds, fertilizers, and logistics and support services.

Flour Mills of Nigeria serves customers in Nigeria.

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