Flour Mills Q1 result shows good start to year 2019

Flour Mills of Nigeria Plc has released its unaudited first quarter (Q1) results for 2019, recording volume growth of 7percent. Key highlights of the results of the leading integrated food business and agro-allied group show Profit Before Tax (PBT) grew to N5.5billion, compared to N5.2billion in Q1 2018, which implies 6 percent year-on-year (YOY) growth.

The group’s Profit After Tax (PAT) at N4.2 billion in Q1 compared to N3.6billion in Q1 2018 represent 17percent YOY growth. The company’s finance cost decreased to N4.5billion in Q1’19 compared to N6.2 billion in Q1’ 2018.

The results for the first quarter reveal an improved performance as the group continues to make significant gains with its strategy to im

prove operational efficiency and implementing cost control measures across its operations.

The Group’s deleveraging strategy achieves desired results as finance cost drops by 27percent. The group’s earnings of N134billion compared to N133billion recorded in Q1’ 2018 represents 1percent year-on-year growth. Deleveraging and active balance sheet management strategy achieved significant reductions in finance costs which dropped by 27percent.

Revenue, for the most part, remained stable, even in the light of strong economic headwinds and depressed consumer demand. Sales volumes appreciated by 7percent while gross margins remained largely in line with figures from the previous year at 12.2percent.

The group’s turnaround in the agro-allied division remained on track with Profit Before Tax at break-even. This was largely due to significant improvement in Premier Feeds and robust growths recorded in Golden Fertilizer. After the recently concluded restructuring and optimization of the agro-allied division, the businesses are now properly positioned to pursue value accretive opportunities which we envisage will continue to yield positive results in the year.