Lagos, Nigeria; October 28, 2021

Flour Mills of Nigeria Plc (referred to as “Flour Mills,” “FMN” or the “Group”), Nigeria’s leading integrated food and agro-allied group, owners of the iconic food brand, ‘Golden Penny,’ today announced its unaudited half-year results for the year 2021/22 showing consistent growth, with revenue increasing by 47% and Profit After Tax (PAT) growing by 6% compared to the same period last year.

Key Highlights:

  • The Group’s revenue was N523 billion, compared to N355 billion in H1 2020/21 (47% - YoY growth). Performance was consistent across all key business segments in the Group with the food, agro-allied and support segments all growing by more than 35%.
  • The Group’s Profit Before Tax (PBT) was N15.5 billion and increased by N0.9 billion vs H1 2020/21 (6% - YoY growth). This performance was underpinned by continued strong operating performance in the food segment; continuous improvement in the agro-allied segment and a significant growth in the support segment lead by the Bagco local packaging solutions, which showed a remarkable growth.
  • The Group’s Profit After Tax (PAT) was N10.5 billion, compared to N9.9 billion in H1 2020/21 (6% - YoY growth). The Group’s solid operational performance was stimulated by strong organic growth, supported by product innovation, and continued momentum in retail sales.

  • Operational Review
    In accordance with management's long-term strategy for product innovation, the Group continued to source raw materials sustainably to ensure high product quality and value addition in our product offerings, while driving growth in B2C segments and investing in route to market activities.

    Our food businesses recorded volume growth across flour, ball food, pasta, and noodle categories in line with projections introducing smaller SKUs across some products to address cash outlay considerations for medium consumption customer and outlets, and further improving the reach of the products.

    In furtherance to our growth strategies the food division commenced the installation of new pasta, noodles, and breakfast cereal lines to increase capacity and meet demand. The division has commenced an expansion plan to further deepen market penetration in Northern markets through enhanced distribution and development of new point of sale outlets.

    In the agro-allied division, the Group continued its goal of driving local content inclusion throughout the value chain and have seen strong growth, especially in edible oils and fertilizer.

    The Group's cost-optimization initiatives continue to bear fruit as evidenced by the lower operating ratio reported. Over the years, deliberate actions had been taken to minimize financial leverage through debt restructuring while maintaining an appropriate leverage.

    Commenting on the result, Omoboyede Olusanya, the Group Managing Director, said:
    “I am very pleased with our half year results. Despite prevailing economic challenges and tough business environment, our Group has continued to show resilience by achieving significant progress across operations and further strengthened the bottom line.

    In furtherance of FMN’s purpose of ‘Feeding the Nation, Everyday,’ and our goal to continue to create value for our esteemed stakeholders, we will remain focused on maintaining growth and sustaining profitability by increasing local content through product innovations and investing in production capacity to strengthen the value chain. We will also continue to focus on achieving operational efficiency and ensuring cost optimization across our operations.”

    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.