Flour Mills of Nigeria Plc posts strong performance in Q3, grows PBT by 23%.

Lagos, Nigeria; January 30, 2020.

Flour Mills of Nigeria Plc (referred to as “Flour Mills “or “FMN”), Nigeria’s leading integrated food business and agro-allied Group, owners of the iconic food brand – ‘Golden Penny,’ today announced its Q3 results for the year 2019/20 showing impressive growth with Profit Before Tax increasing by 23% to N3.7 billion in Q3, and by 9% to N12.3 billion YTD. The group continues to make progress in its purpose of ‘Feeding the Nation, Everyday.

Key Highlights

  • The Group’s revenue in Q3 2019/20 was N152.7 billion, compared to N130.9 billion in Q3 2018/19 (17% - YoY growth). For the nine months ended 31st December 2019, Group revenue was N423.5 billion representing a 6% increase compared to same period last year.
  • Gross profit increased by 11% in Q3 and by 3% YTD. YTD Gross Profit is N47.8 billion, compared to N46.6 billion last year.
  • Finance cost reduced to N4.3 billion, a significant drop (20%) compared to N5.3 billion in Q3 2018/19 (21% - YoY decline).
  • Profit Before Tax increased by 23% to N3.7 billion in Q3 and by 9% to N12.3 billion YTD.
  • Net cash generated YTD was N7.9 billion, compared to N7.2 billion in the prior year.


  • Operational review

    A review of Q3 2019/20 results shows impressive performance across key segments of the business. The Group recorded remarkable growth in its volumes from 6% during 1st HY to 8% in the period under review.

    The agro-allied, sugar and food value chains all had impressive results this quarter, with the food business now moving towards expected projections. Gains in the sector can be attributed to a combination of ongoing brand loyalty and refined regional strategies that are designed to increase market penetration. These strategies have been boosted by recent improvements in the domestic market as a result of gains from the boarder closure.

    The management’s strategy on increasing the efficiency of its balance sheet and improving working capital continues to yield the desired result, with finance cost recording a steady decline. The Group also plans to issue corporate bonds in Q4.

    Commenting on the result, Paul Gbededo, the Group Managing Director, said:
    “I am pleased with our Quarter 3 results. We have recorded impressive growth in our volumes, and profit before tax increased by 23%. In line with our purpose of ‘Feeding the Nation, Everyday,’ I am positive that we are on the right track as we continue to deliver sustainable value for our stakeholders. Going into the final quarter of the financial year, continued growth is envisaged as we continue to implement targeted strategies, invest in our branding and distribution network and reduce operational costs that will bring even more value in the long run for shareholders.

    - End –

    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.