Flour Mills finishes year strong with record 184% profit growth

Flour Mills of Nigeria Plc, Nigeria’s leading integrated food business and agroallied Group, on Monday August 3 announced its audited 2019/20 financial results, showing remarkable growths in all three key segments of Food, Agro-allied and Sugar.

The results

The Group’s revenues grew by 9 percent year-on-year (YOY) to N574 billion. Profit Before Tax (PBT) increased by 72percent (YOY) to N17.5 billion, whereas Profit After Tax increased by 184percent (YOY) to N11.4 billion.

Key highlights of the result showed Group Revenues was N574 billion, compared to N527 billion in 2018/19 Full year (9percent YOY growth); Profit Before Tax was N17.5 billion, compared to N10.2 billion in 2018/2019 (72percent YOY growth); Profit After Tax was N11.4 billion with a 184percent YOY growth. Proposed final dividend represents increase of 17percent to N1.40 for every ordinary share of 50 kobo. This is subject to shareholders’ approval at the company’s AGM.

Operational review

Despite prevailing economic headwinds and the difficult operating terrain of Apapa, the Group had a prosperous and successful year. In line with management’s strategy to continue to stimulate organic growth in all segments of the business, Agro-allied division reached profitability in 2019/20 behind the consistent and focused investments that have been made in this locally sourced segment over the last few years. The Agroallied segments saw strong profit growth in Oils and Fats and Proteins with Gross Profits more than doubling in both segments on an annual basis.

Our Food business recorded accelerated growths within the business-to-consumer (B2C) segments in line with projections, as our focus to improve customer experience saw the introduction of a range of new products and our strategic marketing and promotional activities to win over new market segments yielded the desired result. Management speaks Commenting on the result, Paul Gbededo, the Group Managing Director, said: “The 2019/20 financial year was a remarkable year for our Group and I am really pleased with the result.