Lagos, Nigeria; October 27, 2020.

Flour Mills of Nigeria Plc (“Flour Mills” or “FMN”), Nigeria’s leading integrated food business and agro-allied Group (the “Group”), and owners of the iconic brand – ‘Golden Penny,’ today announced its unaudited 2020/21 half year financial results showing continued growth, with profit before tax of N14.6 billion and profit after tax of N9.9 billion for the six months ended 30th September 2020.

Key Highlights:

  • The Group’s revenue was N355.1 billion, compared to N270.8 billion in H1 2019/20 (31% - YoY growth) with a Q2 growth of 47% vs LY.
  • The Group’s profit before tax was N14.6 billion, compared to N8.6 billion in H1 2019/20 (69% - YoY growth) with a Q2 growth of 160%.
  • The increase in profit before tax was largely driven by the agro-allied segment, which generated a profit of N6.3 billion compared to a loss the previous year. The agro-allied segment saw very strong improvement in the edible oils and fats, protein and fertilizer businesses following the investments over the last few years.
  • The Group’s profit after tax was N9.9 billion, compared to N5.9 billion in H1 2019/20 (68% - YoY growth).

  • Operational Review

    Despite prevailing economic headwinds, the Group continued to show sustained growth in key segments, with the agro-allied segment taking the lead with a strong performance in edible oils and proteins supported by agro-inputs (fertilizer) and agro-distribution and aggregation structures.

    In line with FMN’s growth strategy, the edible oils and fats value chain saw a significant year- on-year increase of 32% in volume turning in a profit when compared to the loss in H1 2019/20. Volumes for the protein value chain also increased by 18% year-on-year, while the starch value chain was up by 31% year-on-year. In line with Management’s long-term strategy on innovation, the food segment continued to concentrate on enhancing local content and value addition while driving growth in B2C segments with multiple product offerings with a continued focus on route to market strategy.

    Following the impressive 2019/20 financial performance as well as the general improvement in profitability, cash flow, working capital and leverage metrics, Agusto & Co upgraded FMN’s credit rating from Bbb to A- with a stable outlook.

    Commenting on the result, Paul Gbededo, the Group Managing Director /CEO, stated that “with this result, our business has once again shown its resilience, by following the path of sustainable growth despite the prevailing challenges in both the local and global economy.”

    He further assured that “in line with our vision to continue to grow value for our investors, Management will for the remaining part of the financial year continue to concentrate on improving operational effectiveness through accelerated strategies for Group-wide cost optimization, which will ensure sustainability in the current market climate, while we continue to invest in growing the business further.”

    About Flour Mills of Nigeria Plc

    Incorporated in September 1960 and quoted on the Nigerian Stock Exchange since 1978, Flour Mills of Nigeria (FMN) Plc, owners of the iconic Golden Penny Food brand is one of Nigeria’s leading food and agro-allied companies. With a broad basket of food products and robust pan-Nigerian production, distribution, and supply chain network, FMN is a fully integrated and diversified food and agro-allied group.

    FMN group strives in its purpose to “Feed the Nation, Everyday” through its five core food value chains: Grains, Sweeteners, Oils and Fats, Proteins, and Starches. FMN creates value along the entire food chain with its “farm-to-table” model by providing inputs and know-how to farmers, aggregating and sourcing crops and raw materials to supply its world-class processing facilities across Nigeria, and distributing its innovative food brands to its customers.