UNAUDITED FINANCIAL RESULTS FOR THREE MONTHS ENDED 30TH JUNE 2017

Flour Mills of Nigeria records revenue growth of 25% to N149 billion from N119 billion, for three months ended 30th June 2017.

Lagos, Nigeria; August 3, 2017. Flour Mills of Nigeria Plc. (FMN) Group, the market leader in food and agro-allied products in Nigeria, today announces its unaudited 2017 first quarter results.

Key Highlights
- Group Revenue was N149 billion, compared to N119 billion in Q1 2016;
- Group Profit Before Tax was N6billion, compared to N5.8billion in Q1 2016;
- Group Profit After Tax was N4.5billion, compared to N4billion in Q1 2016;
- The Company, Flour Mills of Nigeria Plc recorded a revenue of N105billion, compared to N90billion in Q1 2016;
- The company recorded continuous topline growth (+25%), from volume and product mix;
- More focused and effective distribution brings its results in terms of growth and costs;
- Increase in administrative expenses mostly due to one-time charges.
- Net operating gains mostly as a result of FX hedges
- Finance cost increase (vs previous year) mostly due to higher interest rates. Alternative funding is main objective for funding
- Strong revenue growth from volume and product mix, was achieved across all main product segments with continuous growth of Foods and BAGO (Packaging material)
- Agro-allied results affected by our new Sunti Operation and Oil & fats business

Key Operational Highlights
- Continuous topline growth for the group (+25% vs previous year and +10% vs previous quarter) in most product categories
- Strong performance despite recent gridlock in Apapa which adversely affected our operations for a few weeks.
- Operating results in line with Management’s target for most of our businesses; costs are stable leading to improved margins.
- Acquisition of an additional 5% equity in ROM Oils Mills Limited in with our commitments towards the business
- Continuous focus on local aggregation

During the first quarter of 2017, FMN continued to make inroads in the Agro-allied sectors by increasing its already substantial investments in that sector with the commission of an ultra- modern Sorghum cereal mill in Kano.

The mill which is part of a strategic investment drive in Kano, was built at a cost of about N2 billion, has a capacity of 100, 000 metric tons per annum and will help advance the Group’s drive towards establishing an ambitious Pan-Nigerian network of grains aggregation and distribution centers.

Further Investments advances were also recorded during this quarter with the increase in shareholding of ROM Oil Mills limited in Ibadan, from 90% to 95%. This investment is expected to improve the already existing synergy in the Group which relies on the refined oils, and by-products as key inputs in Flour Mills’ animal feeds and associated products.

The business results for the First Quarter, 2017 reveals a strong performance, and this is in spite of the increase in challenges associated with doing business in the current environment, especially with the recent traffic gridlock in Apapa which has had an adverse effect on our operations.

Nevertheless, we are positive that with increased sales volumes and marketing activities that have been streamlined to boost our top line, coupled with the relative stability in the foreign exchange market, and the continuous controls on overheads and financial expenses, the coming quarters should see an improved performance.”

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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.