FLOUR MILLS OF NIGERIA PLC UNAUDITED RESULTS FOR THE FIRST QUARTER ENDED JUNE 30, 2019. STARTING STRONG WITH VOLUME GROWTH AND 17% AFTER TAX GROWTH

Lagos, Nigeria; July 25, 2019.

Flour Mills of Nigeria Plc (referred to as “Flour Mills “or “FMN”), Nigeria’s leading integrated food business and agro-allied Group, today announced its unaudited first quarter results for 2019, recording volume growth of 7% and improvements in PBT to N5.5 billion.

Key Highlights

  • The Group’s Profit Before Tax: N5.5 billion, compared to N5.2 billion in 2018 Q1 (6% - YoY growth)
  • The Group’s Profit After Tax: N4.2 billion, compared to N3.6 billion in 2018 Q1 (17%- YoY growth)
  • Finance cost: N4.5 billion, compared to N6.2 billion in 2018 Q1 (YoY). The Group’s deleveraging strategy achieves desired results as finance cost drops by 27%.
  • Groups earnings: N134 billion, compared to N133 billion in 2018 Q1 (1%YoY growth)


  • Operational Review

    The results for the First Quarter reveal a strong performance as the Group continues to make significant gains with its strategy to improve operational efficiency and implementing cost control measures across its operations. Deleveraging and active balance sheet management strategy achieved significant reductions in finance costs which dropped by 27%.

    Revenue, for the most part, remained stable, even in the light of strong economic headwinds and depressed consumer demand. Sales volumes appreciated by 7% while gross margins remained largely in line with figures from the previous year at 12.2%.

    The turnaround in the Agro-Allied Division remained on track with Profit Before Tax at break- even. This was largely due to significant improvement in Premier Feeds and robust growths recorded in Golden Fertilizer. After the recently concluded restructuring and optimization of the agro-allied division, the businesses are now properly positioned to pursue value accretive opportunities which we envisage will continue to yield positive results in the year.

    Commenting on the result, Paul Gbededo, the Group Managing Director, said:
    “The first quarter result is a good start to the year and a great reflection of the direction that the business is headed as we continue to push our strategy of operational efficiency and sustainable growth. We envisage even more organic growth across the food segments, with anticipated moderations in cost of sales, as global wheat prices reduce and our improved investments in aligning marketing, sales and distribution activities boost earnings and increase market gains.”

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    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. is one of Nigeria’s leading food and agro-allied companies. With a broad basket of food products, an iconic brand “Golden Penny” and a robust pan-Nigerian production, distribution, and supply chain network, FMN is a fully integrated and diversified food and agro-allied group.

    The FMN group strives in its mission 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.

    More information can be found at www.fmnplc.com