Flour Mills of Nigeria Assures Stakeholders of Better Value

The Group Managing Director of Flour Mills of Nigeria Plc, Mr. Paul Gbededo, has said that the company’s focus remains on growing and building long-term value for stakeholders.

Gbededo stated this while commenting on the success the company recorded with its recent Rights Issue where it raised N39.9 billion.

Flour Mills of Nigeria Plc had in January made a Rights Issue of 1,476,142,418 ordinary shares of 50 kobo each at N27.00 per share on the basis of nine new shares for every 16 shares to shareholders.

The issue, which is the first and only share issuance under Flour Mills’ N40 billion rights issue programme, was well received by the company’s broad retail and institutional shareholder base, with a subscription level of 111 per cent.

Commenting on the success of the issue, Gbededo said the strong appetite exhibited by shareholders was a vote of confidence in the company.

“The Rights Issue is aimed at strengthening our balance sheet and positioning the Company for sustainable growth. We value the strong level of support shown by our shareholders and our focus remains on growing and building long-term value for all stakeholders,” he said.

He explained that Flour Mills of Nigeria will use the proceeds from the rights issue to settle part of its outstanding overdraft and short term debt obligations.

“The significant investor demand demonstrates the strength of the Flour Mills’ brand, thriving shareholder goodwill and robust access to the equity capital market,” the MD said.

The company recently released its results for the nine months ended December 31, 2017 with impressively performance.

Group revenue was N427.5 billion in 2017, up by 10 per cent from N389.9 billion recorded in the corresponding period of 2016. Profit before tax (PBT) rose 89 per cent from N10.3 billion in 2016 to N19.50 billion in 2017, while profit after tax (PAT) rose by 80 per cent from N7.39 billion to N13.27 billion. Earnings per share improved from 250 kobo to 456 kobo.

Commenting on the results, Gbededo said: “We are delighted to report another quarter of solid performance, despite harsh operational environments, which have been compounded further by traffic congestions in Apapa. Our food business has continued to show impressive results, in line with our strategy to lead the market in all major categories. We shall continue to drive efficiency and grow our footprints in the Agro-allied segments also in achieving our core focus of feeding the nation, everyday.”