Flour Mills of Nigeria (FMN) Plc has declared a revenue growth of N763.2 billion in its first quarter (Q1) financial period ended June 30, 2024.
The Food and Agro-allied company’s financial results released to the investing public of the Nigerian Exchange Limited showed impressive growth as the Company returned from a loss position to a pre-tax profit of N7.4 billion in the period under review.
Reviewing FMN’s Q1 results, the Group revenue grew by 67 per cent to N763.2 billion compared to N456.4 billion in the same period last year. The Group’s gross profit saw a 73 per cent increase to N86.9 billion and a 68 per cent growth in operating profit.
The profit before tax stood at N7.4 billion, reversing the Q1 loss last year and returning to the Q1 profit levels of two and three years ago.
Speaking on the results, group managing director/chief executive officer of FMN, Boye Olusanya said, “our Q1, 2024 results demonstrate FMN’s ability to deliver solid performance despite significant headwinds.
“We have shown remarkable agility in navigating the challenging macroeconomic environment, including persistent inflation and exchange rate volatilities. Our focus on cost optimization, strategic pricing, and operational efficiencies has enabled us to maintain our market leadership in the Food and Agro-Allied sector.”
He added that “the Food and Sugar segments both witnessed strong top line growth and returned to profitability in Q1 with solid improvements as against Q1, 2023. The Agro-Allied segment that witnessed a remarkable growth of 68 per cent was spurred by stronger performance in the fertiliser and oil and fats businesses, as well as enhanced capacity utilisation.”
Speaking on the Group’s financial position, Group chief finance officer of Flour Mills, Anders Kristiansson said, “our Q1 results reflect our commitment to creating value for our shareholders.”
According to him, the significant strengthening of our profitability, coupled with our strong cash position, provides us with the flexibility to invest in growth opportunities and navigate economic uncertainties. We remain focused on optimising our capital structure and reducing funding costs to improve profitability and deliver long-term value.
He pointed out that “the company’s solid financial foundation, coupled with its diversified business model, provides a strong platform for sustainable growth and value creation for all stakeholders.
“As FMN continues to navigate the dynamic market conditions, it remains dedicated to its purpose of ‘Feeding And Enriching Lives, Every Day’ while driving long-term shareholder value.”
