Adebayo Obajemu

Flour Mills of Nigeria Plc is a leading integrated food business and agro-allied group, owners of the iconic food brand “Golden Penny recently announced their Q3 results for the year 2020/21 showing resilience and continued growth in all segments.

Strongly committed to its culture of building value to customers and Nigeria as a whole, Flour Mills’ growth demonstrates its dedication to meet the country’s need and drive towards sustainable economic growth.

The Q3 2020/21 results show significant improvement across all key segments and reiterates the company’s commitment to meeting the growing needs of consumers and delivery of sustainable value for investors.

The Group’s business in the Agro- Allied segment continues to show impressive growth in the line with projections across the oil and fats, protein and starch value chain.

In the Food segment, the volume driven growth strategy remained underpinned by the resilience of the firm’s portfolio and the agility of teams to adapt to the changing market dynamics.  To broaden its reach, the Group have continued to invest in innovation by developing new products and strengthening its route to the market.

The Group recently completed the issuance of N29.9 billion bond (Series 4, Tranches A and B) in December 2020 which was oversubscribed by 405% within the price guidance. The new bond with the tenor of 5 and 7 years was issued at 5.50% and 6.25% respectively. The issue was strongly supported by the institutional investment community.

The management remains focused in increasing operational efficiency with accelerated plans for cost optimization across all business segments in the Group to ensure competitive product offerings and profitability in the new operating environment.

Commenting on the result, the Group Managing Director, Boye Olusanya said:

“Our ability to stay resilient, while growing organically in a rapidly changing environment, validates our investment strategy, and the strength of our diversified portfolio.

We are keeping in strides with the government’s vision to ensure food sufficiency and have delivered another truly remarkable result this year. Our priorities remain the same – feeding growth and productivity in Nigeria’s food and agro-allied sector, feeding communities with empowerment, and feeding Nigeria’s future with significant backward integration projects”.

Finacial Highlights of Q3 2020/21

The Group posted a 31% revenue growth in Q3 2020/21, and year to date at 31st December 2020, respectively with all segment growing by 25% plus. Q3 revenue N200 billion and year to date revenue as at 31st December 2020 was N555 billion.
Profit Before Tax at year to date December 2020 of N23.6 billion was ahead of the full year 2019/20 Profit Before Tax of N17.5 billion. This was primarily driven by investments in Agro- allied yielding returns, together with solid growth in the Food and Sugar segment.
Flour Mills for the nine months period achieved a profit after tax of N15.58 billion, up by 90.94% from N8.16 billion reported same period in the previous year.
Earnings per share increased to N3.8 from the earnings per share of N1.99 which translates to 90.94% growth year on year.
N50 billion of cash was generated from operations, and net debt decreased by 31% to N66 billion.
N29.9 billion bond issued at 5 and 7-year tenors with coupon rates at 5.50% and 6.25% respectively.
The group’s long term strategy of driving its food and B2C business while investing in agro allied and backward integration continued to generate strong