Flour Mills of Nigeria PLC, the largest Agro-Allied and food group on Africa Continent, recently announced its audited financial performance for the 2019/2020.
The report released on the 3rd August to the Nigerian Stock Exchange, highlights a number of remarkable achievements despite the prevailing economic headwinds and difficult operating terrain.
In line with the group’s management focus of developing Nigeria’s self-sufficiency within the agricultural value chain, Flour Mills invested over N150 billion in recent years.
According to a statement by CIG, made available to OpenLife, the company’s key persuasion for the wholesome investment is to ensure Nigeria has the infrastructure and capabilities to create its own raw materials to support the food sector.
This, according to the statement, is now clearly paying off as the Agro-allied segments saw strong profit growth in Oils and Fats and Proteins, with a Gross profit doubling both segments on an annual basis.
The statement further disclosed that the Group realized a revenue growth of 9% (YoY) to N574 billion.
The breakdown shows that its Profit Before Tax increased by 72% (YoY) to N17.5 billion and a whopping 184% (YoY) Profit After Tax increase to N11.4 billion.
Commenting on the result, Paul Gbededo, the Group Managing Director said: “The 2019/20 financial year was a remarkable year for our group and I am really pleased with the result.
“Our Profit Before Tax saw a remarkable increase of 72% to N17.5 billion, while our Profit After Tax nearly tripled from N4.0 billion in 2019 to N11.4 billion in 2020.”
According to him, this is partly attributable to the improved performance of our Agro Allied Businesses and in line with our strategy to continue to grow the wealth of our shareholders.”
He further stated: “We will remain focused on increasing operational efficiency within the group as we continue to implement our accelerated cost optimization plans across all businesses to ensure profitability in the new operating environment.”
Flour Mills of Nigeria Plc was incorporated in September 1960 as a private limited liability company. The company commenced operations in 1962 with an installed flour milling capacity of 500 metric tonnes per day.
In 1978, Flour Mills converted to a public limited liability company and its shares were subsequently listed on the Nigerian Stock Exchange.
At the moment, Flour Mills is the largest flour milling company in Nigeria, with an installed flour milling capacity of approximately 12,000 metric tonnes per day. The Company continuously strives in its purpose to ‘Feed the Nation, Everyday’ through its five core food value chains: Grains, Sweeteners, Oils and Fats, Proteins and Starches.