Flour Mills Reports 82% Rise in Nine-month Profit

• Flour Mills Reports 82% Rise in Nine-month Profit

Food and agro-allied products player in Nigeria, Flour Mills of Nigeria Plc, has reported an 82 percent rise in its profit for the nine months ended December 31, 2017.

This was contained in its unaudited financial statements released on Wednesday.

At the group level, it recorded revenue of N427.5bn, up from N389.9bn in 2016, giving a 10 per cent year-on-year growth.

The group profit before tax stood at N19.5bn, compared to N10.3bn in 2016, depicting a year-on-year growth of 89 per cent profit after tax was N13.27bn, compared to N7.39bn in 2016, representing a year-on-year increase of 80 per cent.

Earnings per share of 456 kobo was announced, up from 250 kobo in 2016, showing a 82 per cent year-on-year growth

The food business was responsible for an increase of N44.7bn of the group’s turnover, coming from its flour, pasta and noodles product portfolio.

The packaging business of the group contributed N1bn to the group’s profit, representing an increase of 150 per cent.

The group recorded a net operating gain position of N5.5 as at December 31, 2017, attributed to lower foreign exchange rates during the period in review.

Flour Mills of Nigeria Plc (the company) recorded a turnover of N303bn, up from N278bn, depicting a year-on-year increase of nine per cent. The increase in revenue was attributed mainly to better price management and improved price control.

Profit before tax at the company level stood at N18.2bn, compared to N10bn, representing a year-on-year growth of 82 per cent while profit after tax hit N13.15bn, compared to N7.21bn in 2016, which is a year-on-year growth of 82 per cent.

With a view to significantly improve on working capital while reducing debts, the company recently proceeded with its rights issue programme. It is expected that the programme will strategically position the company for sustainable growth.

Commenting on the result, the Group Managing Director of the firm, Paul Gbededo, said, “We are delighted to report another quarter of solid performance, despite harsh operational environments, which have been compounded further by traffic congestions inApapa. “