Flour Mills of Nigeria Plc, a food and agro-allied company has approved N2.15 as a dividend payment for the 2022 fiscal year.
Arising from its 62nd Annual General Meetings (AGM) in Lagos, the company’s chairman who was represented by the Vice Chairman, Paul Gbededo said the group’s increased earnings was a result of the company’s resiliency as well as shareholders’ support.
Gbededo further disclosed that Flour Mills has completed the acquisition of Honeywell Flour Mills.
Apart from the N2.15 dividend approved by the shareholders, the shareholders also approved the request of the company’s board of directors to raise an additional N200 billion in the capital market.
Gbededo said this acquisition (Of Honeywell Flour Mills) created a more resilient national champion for Nigeria in the food industry, laying the groundwork for long-term growth and food security.
“Our food division’s strategic priorities are motivated by the need to become Africa’s leading consumer and business-to-business (B2B) food brand, with the goal of more than doubling earnings before interest, taxes, depreciation, and amortization (EBITDA).”
Flour Mills announced its unaudited result for the period ended June 2022 to include a 45.3 per cent increment in revenue which stand at N339.601 billion from N233.703 billion reported in 2021.
This increase in revenue was amide the effect of rising inflation on the price of goods and services, the disruption in the supply chain due to insecurity, and the rising cost of diesel among other challenges.
A closer look at the company’s financial statement shows that its food segment contributed 63 percent growth of the revenue, from N146.925 in 2021 to N213.166. The agro-allied also saw a revenue increase from N47.58 million in 2021 to N65.65 billion, while profit after tax rose marginally by 0.80 percent from N5.446 billion in 2021 to N5.495 in 2022.