Flour Mills Posts 184% Increase in Profit After Tax for FYE March 2020

Flour Mills Nigeria Plc on Monday posted a 184 percent increase in profit after tax for the year ended 31 March 2020.

In the audited financial statements released through the Nigerian Stock Exchange (NSE), Nigeria’s leading integrated food business and agro-allied Group said revenue grew by 9 percent year-on-year from N527 billion posted in 2018/19 full year to N574 billion.

While profit before tax rose by 72 percent year-on-year to N17.5 billion, up from the N10.2 billion filed in the same period of 2018/19 full year.

The company grew profit after tax by 184 percent year-on-year to N11.4 billion, according to the audited financial statements.

Flour Mills proposed a final dividend of N1.40 for every ordinary share of 50 kobo, representing an increase of 17 percent.

The company said despite “prevailing economic headwinds and the difficult operating terrain of Apapa, the Group had a prosperous and successful year. In line with management’s strategy to continue to stimulate organic growth in all segments of the business, Agro-allied division reached profitability in 2019/20 behind the consistent and focused investments that have been made in this locally sourced segment over the last few years. The Agro-allied segments saw strong profit growth in Oils and Fats and Proteins with Gross Profits more than doubling in both segments on an annual basis.

“Our food business recorded accelerated growths within the business-to-consumer (B2C) segments in line with projections, as our focus to improve customer experience saw the introduction of a range of new products and our strategic marketing and promotional activities to win over new market segments yielded the desired result.”

Speaking on the performance, Paul Gbededo, the Group Managing Director, said “The 2019/20 financial year was a remarkable year for our Group and I am really pleased with the result. Our Profit Before Tax saw a remarkable increase of 72 percent to 17.5 billion Naira, while our Profit After Tax nearly tripled from 4.0 billion Naira last year to 11.4 billion Naira in the current year. This is partly attributed to the improved performance of our Agro Allied Businesses and in line with our strategy to continue to grow the wealth of our shareholders.”

He added that “We will remain focused on increasing operational efficiency within the group as we continue to implement our accelerated cost optimization plans across all businesses to ensure profitability in the new operating environment.“