Flour Mills Nigeria Plc has recorded 68.26 percent, year-on-year growth in its profit after tax in the first half (H1), of its financial year ended September 30, 2020.
The company’s unaudited six months results released to the Nigerian Stock Exchange (NSE), yesterday, showed that the group net profit moved from N5.903 billion as at H1, 2019 to N9.933 billion under the period review, increasing by 68.26 percent. Also, earnings per share increased by 52.12 percent to N2.33 from N1.53 in H1, 2020.
Revenue grew by 31.15 percent to N355.109 billion as against N270.762 billion in H1, 2019, cost of sales up by 27.55 percent from N238.985 billion in H1, 2019 to N304.819 billion in H1, 2020, while gross profits stood at N50.29 billion, higher than N31.777 billion in H1, 2020. Also, operating profit grew to N23.732 billion from N16.821 billion in H1, 2019.
Total assets rose by 14.80 percent to N496.454 billion in H1, 2020, compared to N436.454 billion in 2019, while total shareholders’ funds stood at N159.998 billion as against N155.808 billion in H1, 2019.
The company said despite prevailing economic headwinds, the group continued to show sustained growth in key segment, with the agro-allied segment taking the lead with a strong performance in edible oils and proteins supported by agro-input (fertilizer) and agro-distribution and aggregation structure.
“In line with FMN’s growth strategy, the edible oils and fats value chain saw a significant year-on-year increase of 32 percent in volume turning in a profit when compared to the loss in H1, 2019/20. Volumes for the protein value chain also increased by 18 percent year-on-year, while the starch value chain was up by 31percent year-on-year.
“In line with management’s long-term strategy on innovation, the food segment continued to concentrate on enhancing local content and value addition while driving growth in B2C segment with multiple products offering with a continued focus on route to market strategy.
“Following the impressive 2019/20 financial performance as well as the general improvement in profitability, cash flow, working capital and leverage metrics, Agusto and Co upgrade FMN’s credit rating from Bbb to A- with a stable outlook,” the company said.
Speaking on the result, the group managing director /CEO, Paul Gbededo, stated that, “with this result, our business has once again shown its resilience, by following the path of sustainable growth despite the prevailing challenge in both the local and global economy.”