Flour Mills of Nigeria
Company's food business performed in line with objectives and agro-allied businesses were profitable. Photo courtesy of Flour Mills of Nigeria.
LAGOS, NIGERIA — Flour Mills of Nigeria Plc posted group operating profit of naira 48.4 billion ($134 million) in the fiscal year ended March 31, up nearly 17% from naira 41 billion a year ago. Group revenue climbed to a record high of naira 542.7 billion, up 3.5% from naira 524.5 billion a year ago.

The company said its food business performed in line with its objectives on both the top and bottom lines. Additionally, the results of the company’s agro-allied businesses reflect a combination of both profitable and growing businesses, while Flour Mills of Nigeria’s latest entry into the category has yet to fully deliver according to expectations.

“Our 2017 year-end result shows a remarkable growth in the group’s revenue of N542 billion, which represents an impressive 3.5% year-on-year growth,” said Paul Gbededo, group managing director. “This was achieved through a combination of resilience in the face of a challenging environment, volume growth and product mix from our food and agro-allied businesses. The results are a clear indication that our efforts to continually push for improved efficiency and synergy in the group are yielding the expected results.”

Profit before tax was naira 16.5 billion, up from naira 10.5 billion.

Jacques Vauthier, chief financial officer, said the company has decided to accelerate the depreciation period of some support services assets, resulting in a one-time expense of naira 1.2 billion.

“In an effort to strengthen the company’s capital base, deleverage our balance sheet, and support our working capital needs, we embarked on, and have completed, a Rights Issue program during the past months,” Vauthier said. “With the successful completion of the Rights Issue program we have now positioned the company to exploit value-accretive opportunities, whilst giving greater operational and financial flexibility to ensure business growth and continuity.”

Flour Mills of Nigeria is engaged in flour milling, production of pasta, noodles, edible oil and refined sugar, production of livestock feeds, farming and other agro-allied activities.