Flour Mills of Nigeria Reports 5.32% Profit Growth Amidst N9.3 Billion Forex Harmonization Loss

Flour Mills of Nigeria Plc, a prominent Foods and Agro Allied company, has demonstrated resilience in its annual financial results, achieving a commendable 5.32% profit growth to reach N29.504 billion by the end of the financial period in March 2023.

This marked an increase from N28.015 billion recorded during the same period in 2022.

The company’s Annual Report, unveiled on Tuesday and filed with the Nigerian Exchange Limited, showcased a remarkable 32% surge in revenue, soaring from N1.163 trillion to an impressive N1.539 trillion.

However, the journey wasn’t without its challenges.

 The unaudited financial results for the three months ending June 30, 2023, revealed a loss of N9.337 billion. 

This was a stark contrast from the gain of N5.812 billion achieved in 2022.

Flour Mills attributed a significant drop in its operating profit to a foreign exchange loss of N22.5 billion during the last quarter.

 This led to a loss before tax of N9.3 billion. The company noted that without the exchange rate devaluation, the operating profit could have seen an impressive 52% growth.

In the face of these hurdles, the management of Flour Mills remains confident in the government’s monetary policies aimed at stabilizing the forex market.

Coupled with proactive sales and marketing strategies to boost top-line growth while maintaining cost control, the organization anticipates a substantial improvement in profit generation in the upcoming period, as outlined in their report.

The board of directors has proposed a total dividend of N9.225 billion to be disbursed to shareholders. 

This represents a five percent increase compared to the N8.815 billion paid in March 2022, translating to a dividend of N2.25 (2022: N2.15) per ordinary share of 50 kobo each.

Notably, Flour Mills saw a robust 64.47% expansion in assets, reaching N1.097 trillion from N667 billion in 2022.

However, total liabilities experienced an even more significant surge of 85.13% to N872.171 billion from N471.107 billion.

Highlighting a strategic move, Flour Mills acquired 77.75% of the voting rights of Honeywell Flour Mills Plc on May 12, 2022. 

This transformational transaction aligns with FMN Group’s global growth strategy and aims to enhance food security while expanding its range of innovative products. 

The transaction has set the stage for an even stronger national champion in the food industry.

Founded in 1960 as a private limited liability company and later converted to a public liability company in 1978, Flour Mills has evolved into a multifaceted Group involved in diverse sectors including flour milling, pasta production, edible oil, refined sugar, livestock feeds, agro-allied activities, and more.

 The company’s ultimate holding company, Excelsior Shipping Company Limited, holds 63% stake, owning 2,597,314,890 units of shares.

With a presence in Liberia, Flour Mills is committed to providing essential products and services, encompassing real estate development, shipping, and logistics, further solidifying its position as a key player in Nigeria’s economic landscape

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