By Onome Amuge.
Nigeria’s pioneer wheat miller, Flour Mills of Nigeria (FMN) Plc,recorded an impressive topline growth of 32 per cent to N1.539 trillion from preceding year’s low of N1.163 trillion across its food, agro-allied, and support segments for the fiscal year ended 31 March 2023, reflecting its unwavering market leadership.
The company’s financials showed that FMN prospered, supported by its unwavering commitment to local content and capacity development despite substantial hurdles such as rising international food prices, rising input costs, and currency depreciation.
This is as gross profit rose by 64 per cent to N177.1 billion,overall profit after tax (PAT) appreciated by 5 per cent to N29.5 billion,with earnings per share growing by 16 per cent to N7.25.
FMN, recognised as a key player in Nigeria’s food and agro-allied sectors,posted a profit before minimum tax of N42.75 billion as against preceding year’s N41.118 billion, while its profit for the year rose by 5 per cent to N29.504 billion against N28.015 billion recorded the preceding financial year.
Notably, the agro-allied segment achieved exceptional performance, with 51 per cent and 58 per cent revenue and Profit Before Tax (PBT) growth for the fertilizer business, respectively.
The company’s oil and fats business delivered a substantial 38 per cent revenue growth through improved export operations and equipment optimisation.
In a similar trajectory, the animal feeds business grew by 14 per cent, underpinned by strategic expansion, collaborations, and cost savings
The sugar segment also returned to profitability, gaining a 34 per cent revenue growth driven by local Sunti Sugar and brand loyalty.
On the flipside, the company suffered from an unusually huge foreign exchange loss following the country’s recent foreign exchange reforms.
This had a significant impact on cost of sales for the period under review
which jumped to N1.4 trillion, consuming 88.5 per cent of turnover, largely attributed to
an increased cost of raw and packing materials.
Meanwhile, net operating losses stood at N21.8 billion compared to N135.9 million recorded
in the preceding period.
Boye Olusanya, group managing director/CEO, Flour Mills of Nigeria, described FY 22/23 as a year of agile business strategy implementation.
“Our ability to proactively manage both existing and emerging environmental challenges while progressively driving significant development across all our touchpoints is a testament to the Group’s commitment towards the actualization of self-sufficiency in the country and across the continent,” he said.
Olusanya explained that market impediments such as rising international food prices, input cost escalations, and currency devaluation, were effectively managed, thus the Group’s ability to achieve strong financial performance in FY 22/23.
The group CEO reiterated the company’s commitment to significantly investing across its value chain to reduce the nation’s dependency on imported raw materials and externally generated resources, as it continues to operate as a source of livelihood for millions of Nigerian families.
