Flour Mills Shareholders Approve N2.03bn Dividend Payout

• Flour Mills Shareholders Approve N2.03bn Dividend Payout

The shareholders of Flour Mills of Nigeria Plc have approved a dividend payout of N1 for every ordinary share of 50 kobo, amounting to a total of N2.032bn, for the 2017 financial year.

The Chairman, John Coumantaros, said at the company’s Annual General Meeting that in spite of the challenging socio-economic environment, revenue grew by four per cent to N389bn, while profit before tax rose to N14bn from the N10bn recorded in 2016.

He said the profit after tax went down by six per cent to N9.2bn primarily due to the effect of deferred tax adjustment, following the company’s exit from pioneer status.

According to him, the strong performance of the company is in line with its strategy to continuously create value for stakeholders.

Coumantaros said, “Following the approval given by the shareholders at the 2015 Extraordinary General Meeting of the company to raise up to N40bn of additional equity by way of a rights issue, the rights issue was oversubscribed.

“The receipt of the net proceeds of approximately N39.2bn in March 2018 will significantly impact on the company’s financials and improve the capital structure, leverage and the health of the balance sheet.”

He added that the additional capital would be applied to repay part of the existing debts and other financial obligations, provide working capital support and help to strategically position the company for sustainable growth.