- Flour Mills Profit After Tax Drops by 40.4%
Flour Mills of Nigeria announced a substantial drop in its profit after tax for the nine months ended December 31, 2018.
The unaudited financial statement showed the company’s profit after tax dropped from N13.247 billion in 2017 to N7.895 billion in 2018.
According to the report, total revenue of N400.6 billion was generated during the period under review, down from the N427.508 recorded in the same period of 2017.
The company attributed the difference in revenue to the logistic gridlock at Apapa. The same traffic, according to the company, pushed company expenses to N5.933 billion from N4.037 billion, while administrative expenses also jumped to N14.937 billion from N13.311 billion.
Nonetheless, finance cost showed a 34 per cent drop from the N25.2 billion filed in 2017 to N16.5 billion in 2018. A reduction, which was attributed to the settlement of overdraft facilities and replacement of high yielding loans with more favourable loans.
Speaking on the report, the Group Managing Director, Paul Gbededo, said: “The results are largely a reflection of our focus on driving volume growth while improving operational efficiency and ramping up strategic marketing and promotional activities to win over new market segments in our food business. despite the devastating effect of the traffic congestions in Apapa on our operations, we are quite positive that we will see improvements across major business segments before the close of the financial year, as we continue to focus on delivering on our promise of quality to our consumers.”