Flour Mills earns N1.2trn revenue, posts N28bn profit

Flour Mills of Nigeria Plc has reported 51 percent growth in revenue, year-on-year, for the year ended March 31, 2022, from N772billion in 2021 to N1.2trillion.

The is according the company’s audited financial report.

Similarly, profit before tax went up by 11 per cent from N37billion in the previous year to N41 billion in the year under review, while profit for the year stood at N28billion.

According to the financial statement, the company’s performance was aided by continued investments in local content, including remarkable improvements in the agro-allied business segment following an increase in local demand and export operations thereby contributing N19bn to the Group’s Profit Before Tax.

The food segment grew by N270 billion due to higher B2B volumes and growth in core B2C categories as the company expanded its focus on local content.

The oil and fats business grew revenue by 58 per cent, while the pre-tax profit margin expanded by 141 per cent y-o-y, driven by improved export operations. Export operations revenue went up by 26 per cent.

The company’s backward integration project in sugar production recorded a 21 per cent improvement in revenue, driven by increased volume.

Commenting on the result, Omoboyede Olusanya, the Group Managing Director, said: “We remain committed to implementing our long-term plan with further investments in local content via product innovation across our five major value chains. Our substantial underlying earnings demonstrate our commitment to achieving sustainability as we drive to achieve food security in the country, given the challenging operating environment over the years. With the acquisition of Honeywell Flour Mills Plc. (HFMF) and the attendant differentiated offers, our portfolio continues to evolve, strategically positioning the Group for opportunities from the African Continental Free Trade Area (AfCFTA).

“With the appointment of our third female board member and the promotion of gender diversity throughout our business segments, our sustainability agenda made more strides in line with our long-standing commitment to women’s empowerment. In addition, we developed a local content, food security, and nutrition board committee to improve the well-being of our consumers, assist in regenerating and strengthening the farming communities in our supply chains, and promote local economic development.

“In line with our strategy, we will continue to increase operational efficiency with accelerated plans for cost optimizations across the Group. This will ensure that we are on course to continue to create value for our shareholders in the long run.”