A leading food and Agro-allied company, Flour Mills of Nigeria Plc (FMN), has achieved an impressive 49% rise in revenue, totalling ₦2.3 trillion in its latest financial statement for the fiscal year concluded on March 31, 2024. This outstanding performance reflects the company’s ability to adapt and thrive in a constantly changing economic environment. The increase in Revenue to ₦2.3 trillion for the group was a result of continuous demand in every business sector, surpassing the ₦1.5 trillion earned in the prior year. A significant rise in gross profit of 54% was achieved, amounting to ₦273 billion.
This increase was attributed to successful portfolio management, innovative product development, strategic pricing, and effective cost optimization strategies. The Operating Profit also experienced a substantial growth of 61% as a result. Furthermore, Profit Before Tax, as well as foreign exchange impact, also saw a notable improvement, increasing by 90% to ₦141 billion. The group amassed a substantial amount of cash, with a strong net cash balance of ₦176 billion, allowing for the flexibility to pursue growth prospects and meet debt repayment commitments.
Innovative products and efficient operations make them stand out.
Boye Olusanya, Group Managing Director/Chief Executive Officer of FMN, expressed satisfaction with the company’s strong performance. He emphasized FMN’s financial and operational strength, attributing it to consistent execution and growth. Despite tough economic conditions, FMN has maintained its position as a leading market player in the Food and Agro-allied sector due to innovative products and efficient operations. The Agro-allied sector experienced a significant improvement, with a revenue increase of 17% and profit before Tax growth of 4Z%.
The sector’s boost was due to higher Export quantities, slight price changes, and the addition of new products in the Fertilizer division. In regards to the financial performance of the group, Anders Kristiansson, the Group’s Chief Finance Officer, expressed that by increasing efficiencies within the group, they anticipate ongoing value creation aligned with their strategic plan. This led to the approval of 180 kobo dividends for shareholders by the Board, a decision rooted in their commitment to delivering value.
Capitalizing on opportunities makes them adapt to economic uncertainties.
They have been able to generate significant cash flow and decrease their net debt, which gives them the ability to adapt to economic uncertainties and capitalize on opportunities for growth. The company is dedicated to its strategic goals, which include incorporating more local content, expanding its production lines, and maintaining a strong Pipeline of innovative projects. With a solid financial foundation and a diversified business approach, the company is well-prepared to take advantage of new possibilities and foster long-term growth.
Established in September 1960 and listed on the Nigerian Stock Exchange in 1978, Flour Mills of Nigeria (FMN) Plc is a prominent food and Agro-allied company in Nigeria. FMN, known for the renowned Golden Penny Food brand, has a wide range of food products and a strong production, distribution, and supply chain network across Nigeria. The company is fully integrated and diversified in the food and Agro-allied sector. The group is dedicated to nourishing the nation every day through its five essential food categories: Grains, Sweeteners, Oils and Fats, Proteins, and Starches.
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By implementing a holistic farm-to-table approach, FMN adds value throughout the entire food supply chain. This includes offering support and knowledge to farmers, sourcing crops and raw materials for its state-of-the-art processing facilities nationwide, and delivering innovative food brands directly to customers. They are focused on driving sustainable growth by investing in new technologies, improving operational efficiencies, and expanding its product offerings. The company is committed to promoting the development of the agricultural sector in Nigeria, enhancing food security, and contributing to the country’s overall economic development.