The Flour Mills of Nigeria(FMN) Plc’s overall revenue rose by 38 per cent to N721 billion as at Half Year 2023 when compared to what it was in half year 2022.
This, the company said, was propelled by a favourable mix and some exchange related pricing. adding that, strong revenue growth averaged 36 per cent across all business segments.
“Operating performance in the Food segment remained solid, notwithstanding a challenging environment with increased input prices and a somewhat softening volume base, even as Golden Sugar recorded double-digit growth in revenue (51 per cent) and a solid profit growth due to increase in volume and various customer engagement efforts to drive customer loyalty, “ FMN stressed.
Its gross profit, however, reached N33.2 billion, up from N25.7billion in H1’22.
While the group’s operating performance in the Food segment remained solid; profit before tax for Agro-Allied remained at the level achieved the previous year, with Sugar segment recording a significant rebound compared to Q2 2021 as anticipated due to a normalised competitive playing field, increased route to market expansion into both new and rural markets, and increased customer engagement.
The group is integrating the Honeywell business to realise the synergies anticipated with focus on restructuring the balance sheet to reduce FX exposure and ensure manufacturing stability, which is expected to lead to strong results in the long term.
Commenting on the result, the group managing director/CEO, Mr. Boye Olusanya, said: “FMN continues to meet the needs of the consumers with our sustainable route-to-market structure and new product initiatives across our touch-points.
“As we can see in the H1 22/23 report, the Sugar segment recorded a significant rebound compared to H1’21/22, a clear demonstration of the Group’s continuous and significant investment in the sugar value chain and across all our key value chains and sectors.”
As the group continues to make headway in its backward integration activities through various strategic efforts, he said, FMN remain committed to feeding the nation, every day.
The company’s investment in product innovation and supply chain optimisation, he said, was sustained in furtherance of the execution of its long-term strategy.
“As part of the Group’s strategic roadmap, FMN continues to put in place a business continuity plan to safeguard its supply chain and food production processes to ensure that Nigerians can continue to have access to their daily nourishment,” he pointed out.
