Flour Mills of Nigeria Grows Profit by 90% to $41m

Nigeria’s integrated food business and agro-allied group, Flour Mills of Nigeria Plc, has continued its strong performance, growing its profit after tax (PAT) for the third quarter ended December 2020/21 by 91 per cent.

The Group posted a revenue of 1.46 billion dollars in Q3, up from 1.11 billion dollars in the corresponding period of 2019/20. Profit after tax jumped from 21.47 million dollars to about 41 million dollars.

Commenting on the result, the Group Managing Director, FMN, Boye Olusanya, said: “Our ability to stay resilient, while growing organically in a rapidly changing environment, validates our investment strategy, and the strength of our diversified portfolio.

“We are keeping in stride with the government’s vision to ensure food sufficiency and have delivered another truly remarkable result this year. Our priorities remain the same – feeding growth and productivity in Nigeria’s food and agro-allied sector, feeding communities with empowerment, and feeding Nigeria’s future with significant backward integration projects.“

According to him, they are strongly committed to their culture of building value for their customers and Nigeria as a whole, while their growth demonstrates their dedication to meet the country’s need and drive towards sustainable economic growth.

“The Q3 2020/21 results show significant improvements across all key segments and reiterates our commitment to meeting the growing needs of our consumers, as we continue to deliver sustainable value for investors. Our businesses in the agro-allied segment continues to show impressive growth in line with projections across the oils and fats, protein and starch value chains. In the food segment, our volume-driven growth strategy remained underpinned by the resilience of our portfolio and the agility of our teams to adapt to the changing market dynamics. To broaden our reach, we have continued to invest in innovation by developing new products and strengthening our route to market,” the company added.

FMN recently completed the issuance of 78.68 million dollars’ bond (Series 4, Tranches A and B) in December 2020, which was oversubscribed by 405 per cent within the price guidance.

“Management remains focused on increasing operational efficiency with accelerated plans for cost optimisations across all business segments in the group to ensure competitive product offerings and profitability in the new operating environment,” the company stated.

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