Flour Mills of Nigeria(FMN) Plc recorded N41 billion Profit Before Tax(PBT) in its audited financials for the year ended 31st of March, 2022.
This translates to 11 per cent Year-on-Year(YoY) growth from N37 billion declared in the preceding year.
Having recorded an impressive top-line growth for the full year across all business segments with revenue growing by 51 per cent, the group continued to demonstrate resilience and strong performance across Food, Agro-Allied and Support Segments, delivering top-line growth of 57 per cent in Q4 and 51 per cent in FY22, behind strong volume growth and favourable mix.
There was continued investments in local content including remarkable improvements in the Agro-Allied business segment following increase in local demand and export operations, thereby, contributing 47 per cent (N19billion) to the group’s Profit Before Tax.
While its food segment grew by N270 billion due to higher B2B volumes and growth in core B2C categories as it expanded its focus on local content, the group also continued to increase and diversify investments in its B2C redistribution infrastructure with the rollout of 226 vans to enhance penetration of its new business partners, especially, into rural areas and to support the technology driven market channels.
“Our oil and fats business grew revenue by 58%, while pre-tax profit margin expanded by 141 per cent y-o-y, driven by improved export operations (revenue up 26 per cent),” it said.
The growing demand in the north and by other industrial customers, it stressed, propelled its introduction of brown sugar, which is locally grown on its farms in Sunti, to the market.
“At the same time, our Backward Integration project in sugar production recorded a 21 per cent improvement in revenue driven by increased volume. However, the rise in raw material costs largely impacted the sugar segment’s operating performance,” it stressed.
Commenting on the result, the group managing director, Omoboyede Olusanya, said: “we remain committed to implementing our long-term plan with further investments in local content via product innovation across our five major value chains. Our substantial underlying earnings demonstrate our commitment to achieving sustainability as we drive to achieve food security in the country, given the challenging operating environment over the years.
“With the acquisition of Honeywell Flour Mills Plc(HFMF) and the attendant differentiated offers, our portfolio continues to evolve, strategically positioning the Group for opportunities from the African Continental Free Trade Area (AfCFTA).”
He stated that the firm developed a local content, food security, and nutrition board committee to improve the well-being of our consumers, assist in regenerating and strengthening the farming communities in its supply chains, and promote local economic development.
Flour Mills of Nigeria Plc strengthened its position as the market leader in flour, semolina and pasta manufacture as it obtained approval for the acquisition of Honeywell Flour Mills Plc.