Flour Mills of Nigeria Plc (FMN), Nigeria’s leading integrated Food and Agro-allied group, owners of the iconic brand – ‘Golden Penny’ has released unaudited nine months financial results for the period ended December 31, 2021 with 7% growth in profit before tax to N25.255 billion in nine months from N23.608 billion in 2020 and 8% growth to 9.8 billion in three months.
The group’s revenue grew by 48.5 percent to N824.980 billion from N555.341 billion in 2020.
The Company in a statement said, “Persistent good operating performance in the Food segment; continuous improvement in the Agro-Allied and Support segments alongside strong volume growth resulted in an impressive profit before tax of N25.255 billion from N23.608 billion in 2020.
“Continuous product innovation, improved capacity utilization, and effective route to market strategies aided the Group’s outstanding financial performance across its core business segments. Flour Mills is Nigeria’s leading integrated food and agro-allied business and owners of the iconic brand, ‘Golden Penny.”
The statement further showed that Flour Mills results demonstrated solid performance across Food, Agro-Allied and Support Segments delivering topline growth of 51 percent in Q3 and 49 percent in nine months, behind strong volume growth and mix.
Agro-Allied segment in nine months contributed 42 percent (N10.7billion) to the Group’s profit before tax following the increase in local demand and improved export operations.
The Group’s strong operating performance was also supported by the increase in CAPEX investments from N10 billion to N33 billion and enhanced sourcing of local raw materials during the harvest period in comparison to the previous year, evidencing strong focus on expansion while maximizing growth prospects.
As part of its expansion plans to meet growth demands, the Group said it installed a new pasta line, concluded the construction of a soya plant in Agbara, and purchased sixty new trucks during the review period. The Kaduna Feed Mill is near completion and is projected to be operational in May 2022.
NewsBeatng reports that the food segment displayed increased momentum in retail, boosting profitability during the quarter. Top line improvement was driven by 18 percent volume growth alongside sustained demand in the segment. B2C contributed 34 percent to the segment revenue during the quarter.
Commenting on the quarter three (Q3) financials, Omoboyede Olusanya, the group managing director, said: “The Group remains committed to executing its overall long-term strategy to maintain growth and sustain profitability by increasing local content through product innovation across our core value chains, as evidenced by the third quarter’s earnings trend.
“In our new operating environment, our increased operational efficiency and accelerated optimization plans have resulted in competitive product offerings and profitability. We will continue to invest in production capacity and make investment decisions that will strategically position the group for the opportunities that will arise from the African Continental Free Trade Agreement.”