The shareholders of Flour Mills of Nigeria (FMN) has approved N8.815 billion dividend payouts for 2021/2022 financial year end.
They gave their approval at the 62nd Annual General Meeting (AGM) in Lagos, which amounts to N2.15 per share. Also, part of the resolutions approved by the shareholders at AGM was to authorise the directors to raise additional capital for the company to the tune of N200 billion.
The shareholders commended the company’s 2022 performance as turnover crossed the N1 trillion mark.
Speaking to shareholders, the chairman of Flour Mills, Mr John Coumantaros, who was represented by vice- chairman, Mr. Paul Gbededo, said despite the prevailing challenges around the world especially as global economies struggled to recover amidst supply chain disruptions caused by the prolonged effect of the COVID-19 pandemic and worsened by the ongoing conflict between Ukraine and Russia, the Group has delivered another impressive performance.
Coumantaros noted that “the Group delivered solid performance across key business segments, with revenue growing by 51 per cent. The Food, Agro-Allied, and Support Segments showed impressive top-line growth of 57 per cent, 53 per cent and 56 per cent, respectively, in full year 2022 on the back of robust volume growth and a favourable product mix.
“Investments in local content continued to yield the desired results for our agro-allied business. Following an increase in local demand and export operations, the segment achieved significant improvements, contributing as much as 47 per cent to the Group’s profit before tax as overall, net profit increased to N28 billion in the year under review.”
He added that the group was also able to initiate and complete, through the course of the outgone year, the acquisition of Honeywell Flour Mills Plc, obtaining regulatory approvals to complete the transaction just as the financial year wrapped up, saying, this acquisition creates a more resilient national champion for Nigeria in the foods industry, setting the conditions for long-term job creation and strengthening food security.
He also noted that “in addition to expanding our presence in the market, broadening our customer base, and strategically positioning our business to capitalise on the potentials presented by the African Continental Free Trade Area, the acquisition will create a rise in shareholder value for both organisations.”
Looking ahead, he said, “Our goal is to build an integrated supply chain that gives us a competitive edge and access to high-quality, fair- priced products from cultivation to final consumption. This will speed up food processing, value addition, and the sustainable development of the food sector and ensure our business’s continuous profitability and growth.”
Also, the group managing director/chief executive officer, Flour Mills, Mr. Omoboyede Olusanya said despite an increasingly challenging business climate, including rising international food prices and input costs that reduced gross margins by five per cent to N108 billion, our business continued to show its resilience.
