LAGOS, NIGERIA — With solid performance across all of its segments, Flour Mills of Nigeria posted gross profit of N33.2 billion ($7.9 million) for the first quarter ended June 30, up from N25.7 billion a year ago.
The company said despite the increase in input prices, the food segment had consistently good operation performance along with solid performance in the Agro-allied segment following penetration into new and rural markets.
“Despite the challenging socio-economic environment, we continue to deliver strong business performance with resilience and operational excellence,” said Omoboyede Olusanya, group managing director. “Our increased operational efficiency with accelerated plans for our supply chain optimization, content localization, and cost optimization across our business segments has helped to cushion the sharp rise in the cost of raw materials.
“The Group is dedicated to achieving sector strategic growth opportunities, both organic and inorganic with keen determination as we continue to create value for our shareholders.”
Profit before tax was up 1% on an absolute basis and 15% on an operational basis (excluding transitional costs) to N7.3 billion. FMN attributed the increase to investment toward customer redistribution and improved customer interface engagement.
The animal feeds business saw a 21% increase in revenue growth driven by investments in logistics infrastructure and farmer training extension services across the country.
During the quarter, FMN completed the acquisition of Honeywell Flour Mills PLC, which resulted in a N1.1 billion deficit for Honeywell and a N0.4 billion one-off transactional cost for FMN.