Flour Mills of Nigeria (FMN) Plc has reported strong revenue growth of 33% year-on-year, reaching N508.3 billion in the second quarter (Q2) ending on September 30, 2023.
This was revealed in the company’s unaudited results for the reviewed period, released on the Nigerian Exchange Limited.
According to the company, it recorded a gross profit growth of 53% to N55.2 billion. The Group reported a profit before tax of N1.2 billion, an increase from the previous year, with a profit after tax of N0.8 billion.
The Food segment remained the largest contributor, accounting for 68% of Q2 revenues. Food revenues grew by 50%, driven by volume growth in pasta, noodles, and other B2C categories.
The Sugar segment saw a 67% increase in revenue owing to higher sales of brown sugar and a strong base growth. The Agro-allied segment, on the other hand, recorded a 28% drop in revenues due to lower fertilizer sales.
Strong cash generation continued, with cash balances increasing by 262% year-on-year to N214.2 billion.
The Company stated that these results were achieved despite challenging market dynamics and unfolding global events like inflationary strains and the aftermath of COVID-19, showcasing the strength of the Group’s business model and its ability to adapt to evolving market conditions while delivering value to its stakeholders.
According to FMN, the main revenue driver for Q2 23/24 was its Food segment, which grew by 50% and was driven by pasta, noodles, and semolina. The Sugar business saw a 67% increase in revenue, attributed to increased demand for brown sugar and a solid base demand.
“FMN continued its strong cash generation, with cash balances soaring by an impressive 262% year-on-year, reaching N214.2 billion. This financial strength provides the company with the agility to reinvest in its operations and explore strategic growth opportunities.”
It added that “in the face of Nigeria’s economic challenges, FMN’s ability to maintain growth and deliver value to its stakeholders is still based on its strategic positioning and careful financial management.”
“Beyond achieving these financial results, FMN maintains a strong commitment to contributing to Nigeria’s economic development. The company’s prospects in the PowerCo setup are set to enhance expansion plans and operational capabilities, create jobs, and stimulate growth for the betterment of the Nigerian economy.”
Group Managing Director/Chief Executive Officer of FMN, Mr. Boye Olusanya, expressed his optimism for the future, stating, “we are excited about the potential for Q2 23/24 and the foreseeable impact of this financial growth for the organization. As we navigate through emerging marketing challenges, we will continue to work with all our stakeholders in driving the Group’s vision and propagating a sustainable business.”
Flour Mills of Nigeria, incorporated in September 1960 and quoted on the Nigerian Stock Exchange since 1978, is the owner of the iconic Golden Penny Food brand and is one of Nigeria’s leading food and agro-allied companies. With a broad basket of food products and a robust pan-Nigerian production, distribution, and supply chain network, FMN is a fully integrated and diversified food and agro-allied group.
