Flour Mills of Nigeria Plc, a prominent Foods and Agro Allied company, announced a notable 5.32 percent increase in its profit to N29.504 billion by the end of the financial period in March 2023.
This growth is higher than the N28.015 billion recorded during the same period in 2022.
In its recently filed Annual Report with the Nigerian Exchange Limited on Tuesday, the company also reported a 32 percent surge in revenue from N1.163 trillion to N1.539 trillion.
However, the unaudited financial results for the three months ending on June 30, 2023, revealed a loss of N9.337 billion for FMN. This contrasts with the N5.812 billion gain reported in 2022.
In accompanying notes, FMN Plc attributed the significant drop in operating profit to a foreign exchange loss of N22.5 billion in the last quarter, leading to a loss before tax of N9.3 billion.
The report stated, “Without the devaluation of the exchange rate, the operating profit would have increased by an impressive 52 percent. Management remains optimistic that with the current government monetary policies aimed at stabilizing the forex market and ongoing efforts in sales and marketing activities focused on boosting our top line while maintaining cost control, we anticipate a substantial improvement in profit generation in the upcoming period.”
Dividend and Financial Growth
The company’s board proposed a total dividend payout of N9.225 billion to shareholders, representing a five percent increase from the N8.815 billion paid at the end of March 2022.
This translated to a dividend of N2.25 per ordinary share of 50 kobo each, up from N2.15 in 2022.
During the review period, the company’s assets witnessed significant growth, surging by 64.47 percent to N1.097 trillion, compared to N667 billion in 2022. Total liabilities also increased by 85.13 percent, reaching N872.171 billion from N471.107 billion.
In a strategic move on May 12, 2022, FMN acquired 77.75 percent of the voting rights of Honeywell Flour Mills Plc. The company explained that this transaction aligns with FMN Group’s global growth strategy, aiming to create a more robust and resilient national champion for Nigeria and enhance food security.
The acquisition combines the unique strategic strengths of both companies, providing customers with access to a wider range of innovative products and enabling FMN to expand its group operations.
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Dangote Industries Limited Reaffirms Commitment to Bolstering Employment Opportunities for Nigerians
Dangote Industries Limited has underscored its unwavering dedication to fostering employment opportunities and advancing the cause of decent work for the Nigerian populace.
Dangote Industries Limited has reiterated its steadfast investment in critical sectors of the nation’s economy to facilitate job creation and stimulate the growth of meaningful employment.
Speaking during the induction ceremony of a new cohort of graduate trainees, Mr. Aliko Dangote, the President of Dangote Group, highlighted the company’s transformative journey from a commodity trading entity to a manufacturing powerhouse.
This evolution is a testament to their unwavering mission to contribute significantly to Nigeria’s industrial development, consequently positioning the nation prominently in the African industrial landscape.
“The core mission of our group is to improve the lives of the people by addressing their fundamental needs. This noble objective can only be achieved through the production of essential goods that cater to the needs of our people. This is why we have made massive investments across various sectors of the economy,” stated Mr. Dangote.
Mr. Dangote further emphasized the pivotal role that manufacturing plays in meeting the needs of the populace and its potent ability to combat poverty by creating job opportunities.
He commended the ongoing graduate trainee program as a tangible manifestation of their commitment to employment generation, recognizing its positive impact on the lives of countless individuals.
In a strategic move aimed at fulfilling their goal of job creation and addressing the basic needs of the Nigerian people, Mr. Dangote revealed that his Group has expanded its business portfolio with three significant investments valued at over $20 billion.
These investments encompass the refinery, petrochemical, and fertilizer sectors, with the potential to not only bolster the nation’s economy but also reinvigorate Nigeria’s foreign exchange reserves.
Also, these initiatives are anticipated to generate approximately $16 billion in foreign exchange earnings and offer an impressive aggregate of 250,000 jobs, thereby contributing to the reduction of youth unemployment in the country.
Dangote Industries Limited remains unwavering in its commitment to making substantial contributions to Nigeria’s industrial landscape, and its dedication to providing employment opportunities that uplift the lives of Nigerians is undeniably resolute.
The Group’s continuous investments in critical sectors reflect a steadfast commitment to shaping a brighter future for both the nation and its people.
Gas Retailers Issue Warning: Cooking Gas Prices Could Soar to N18,000 by December
Gas retailers are sounding the alarm, cautioning that the price of a 12.5kg cooking gas cylinder may skyrocket to N18,000 by December if the Federal Government does not take swift action to regulate the activities of terminal owners.
Olatunbosun Oladapo, President of the Nigerian Association of Liquefied Petroleum Gas Marketers, disclosed this during an interview on Sunday.
He revealed that the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has increased substantially at terminals.
The cost has surged from a range of N9-N10 million per 20 metric tons to an alarming N14 million per 20 metric tons.
Olatunbosun warned, “There is an outrageous surge in gas prices happening right now, and I am apprehensive that if the Federal Government fails to intervene and oversee the activities of these terminal owners, prices could skyrocket to as high as N18 million per metric ton by December. This would mean that a 12.5kg cylinder could cost as much as N18,000.”
According to him, terminal owners are using the excuse of high foreign exchange rates to justify their price increases, ultimately adding to the burden of the masses.
Olatunbosun however stated that there is no justifiable reason for this price hike, as the Nigerian Liquefied Natural Gas Limited (NLNG) continues to supply the market.
He explained, “NNPCL currently purchases 59 percent of the gas produced by NLNG, even though NLNG has raised its prices from N6 million to N8 million. Now, due to NLNG’s price hike, NNPCL and terminal owners have pushed prices to N14 million.”
He also pointed out that the impending price increase is not the fault of retailers but rather lies with NLNG and terminal owners.
He revealed that just last week, gas was selling at N800 per kilogram at the terminal, but it has now risen to N1,200 and could potentially reach N1,500 by December if immediate action is not taken.
Olatunbosun lamented, “Now, the average person will struggle to afford gas. How many minimum wage earners can afford gas now? People are resorting to firewood and charcoal. What is surprising is that they met with President Tinubu last week and pledged to collaborate with his administration to improve lives. Now, they have gone back on their word. Where are the promised palliatives and buses? We have not seen anything.”
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