31st August, 2023
Flour Mills of Nigeria Plc (FMN), a key player in Nigeria’s food and agro-allied sectors, has thrown light on its strong financial performance for 2022/2023, as it raked in a gross revenue of N1.5 trillion.
Gross profit increased by 64 percent to hit N177.1 billion. FMN prospered despite substantial hurdles such as rising international food prices, rising input costs, and currency depreciation.
The company also announced a dividend of N2.25k to its shareholders.
Managing director/CEO Boye Olusanya, in a report sent to the Nigerian Exchange on Wednesday said the performance was undergirded by the company’s unwavering commitment to local content and capacity development.
The Key highlights:
*Achieved solid topline growth of 32% ni FY22/23 across Food, Agro-Allied, and Support segments, showcasing its unwavering market leadership.
*Gross Profit improved by an impressive 64%, reaching N177.1 billion.
*Honeywell came out of the integration phase and delivered a solid profit in quarter 4
*The overall profit after tax increased by 5% to 29.5b with earnings per share growing by 16% to N7.25 per share.
*Agro-Allied segment delivered exceptional performance, with 51% and 58% revenue and Profit Before Tax growth for the Fertilizer business, respectively.
*Oil and fats business achieved a substantial 38% revenue growth through improved export operations and equipment optimization.
*Sugar Segment returned to profitability, marking a remarkable 34% revenue growth driven by local Sunti Sugar and brand loyalty.
*Strong focus on operational efficiency, supply chain optimization, and cost management.
*FMNs’ strategic growth opportunities, including the Honeywell Flour Mils Pl acquisition, highlight its determination to create value for shareholders.
FMN’s consistent commitment to operational excellence paid off, as indicated by a 64% increase in gross profit, which reached N177.1 billion. Despite substantial hurdles such as rising international food prices, rising input costs, and currency depreciation, FMNs’ adaptable approach enabled ti to prosper.
Notably, the Agro-Allied section experienced remarkable growth, with revenue and Profit Before Tax increasing by 51% and 58%, respectively, ni the fertilizer industry.
The Animal Feeds and Oil &Fats businesses grew by 14% and 38%, respectively, thanks to strategic expansion, collaborations, and cost savings.
FMNs’ overall impact was strengthened by the Sugar Segment’s successful return to profitability, which was marked by a 34% revenue increase.
Group Managing Director, Boye Olusanya commented: “FY 22/23 has been a year of agile business strategy implementation.
“Our ability to proactively manage both existing and emerging environmental challenges whilst progressively driving significant development across all our touch points is a testament to the Group’s commitment towards the actualization of self-sufficiency in the country and across the continent.
“Market impediments such as rising international food prices, input cost escalations, and currency devaluation, were effectively managed, thus the Group’s ability to achieve strong financial performance in FY22/23.
“As we continue to act as a source of livelihood for millions of Nigerian families, we would remain committed to significantly investing across our value chain to reduce the nation’s dependency on imported raw materials and externally generated resources”.