- Flour Mills Posts N9.8bn Profit After Tax
Flour Mills Nigeria Plc has reported a profit after tax of N9.8bn compared with N10.4bn recorded last year.
The company’s revenue grew by 51 per cent from N248bn to N375bn; and after adjusting for the full impact of the exceptional foreign exchange loss of N6bn, it posted an after-tax profit of N9.8bn.
The FMN Group, in a statement, said it achieved an increase in turnover which rose by 53 per cent to N524bn, in spite of the challenge and the unfavourable environment, stressing, “We were able to achieve a solid performance owing to our resilience and managerial capabilities.”
In the statement signed by its Head, Legal Services and Company Secretary, it said the growth was driven by a combination of volume increase, enhanced operating efficiencies coupled with commensurate increases in prices.
“The group’s financial performance was adversely affected by the impact of over 40 per cent devaluation of the naira as well as the uncertainties associated with persistent foreign exchange scarcity and sharp fluctuations in rates which we have been able to successfully hedge,” it explained.
Compared with the last two financial years, it said the performance was very impressive, adding,“In 2014/15, the group recorded an operational loss of N6.2bn only made good by the profit on sale of 50 per cent of our equity in Unicem, amounting to N13.9bn, which ensured a final profit before tax of N7.7bn.
“In 2015/16, the group also returned an operational loss of N12.7bn, but with sale of investment gain of N23.7bn of the remaining 50 per cent of our equity in Unicem giving a profit before tax of N11.5bn.”
The company said it was able to navigate the difficult waters leveraging the strength and quality of its brand -Golden Penny.
Thus, the directors of the company will be proposing to shareholders at the forthcoming annual general meeting, the declaration of a total of N2.62bn dividend of N1 per ordinary share of 50 kobo each consistent with payment made in 2016.