Flour Mills of Nigeria Plc (FMN) has reported an impressive operating profit of N31 billion in the first quarter of the fiscal year 2023/2024, as revealed by its unaudited financial performance.
Despite facing the headwinds of a challenging macroeconomic environment, FMN exhibited strong revenue growth across its various business segments, according to the newly disclosed Q1 2023/2024 unaudited report.
Notably, the company’s Overall Profit Before Tax was influenced by foreign exchange losses amounting to N22.5 billion during the quarter, ultimately resulting in a net loss of N9.3 billion. FMN attributed this setback to the timing of the currency devaluation that took place in mid-June.
The company expressed confidence in its ability to overcome these foreign exchange fluctuations, citing its history of resilience against such challenges.
The Q1’24 financial performance indicated an impressive 34% growth in revenue over the same period of the previous year (Q1’23).
This robust expansion was seen across all business segments, with the Food, Agro-Allied, Sugar, and Support Segments registering growth rates of 42%, 22%, 21%, and 10% respectively. This growth was fueled by volume expansion and a favorable product mix.
FMN reported an even more impressive 51% increase in overall gross profit during Q1’24, surpassing the rate of revenue growth.
The company’s diligent efforts towards inventory management played a significant role in driving a N31 billion improvement in Net Debt during Q1’24 compared to the fiscal year 2022/2023.
This reinforces FMN’s commitment to debt reduction and enhanced cash flow.
To further optimize financing costs, FMN issued N85 billion worth of commercial paper at an average rate of 11.75%.
This move is expected to contribute to lower financing costs for the remainder of the year and beyond.
Amid these financial achievements, FMN’s Agro-Allied segment, specifically its Oil and Fats business, launched the innovative Golden Penny Choco Spread with various SKUs, demonstrating the company’s commitment to product innovation and expansion into new markets.
Omoboyede Olusanya, the Group Managing Director of FMN, emphasized the organization’s dedication to nurturing local content and capabilities.
He highlighted the importance of delivering high-quality products while continuing to generate value for shareholders.
Olusanya acknowledged the current market volatility and underscored FMN’s adaptability and preparedness to navigate evolving challenges while maintaining a focus on providing essential products to enrich lives.
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