LAGOS, NIGERIA — Flour Mills of Nigeria reported on Aug. 24 that earnings for the first quarter were $1.18 billion naira ($6 million), down 66% from $3.54 billion naira ($17 million) in the same quarter of last year.

Revenue decreased 1.98% during the first quarter to $82.28 billion naira ($413, 680.92)

Flour Mills had reported a one-off gain after the disposal of an investment in the first quarter of 2014, which was not repeated this year, leading to the fall in profit Reuters reported.

On Aug. 12 the company announced its plan to restructure by merging five of its subsidiaries with its holding company.

Group Managing Director Paul Miyonmide Gbededo said the company has obtained the approval-in-principle of the Securities and Exchange Commission (SEC) to merge five of its wholly owned subsidiaries, Golden Noodles Nigeria Limited, Golden Transport Company Limited, FMN Cement Industries (Nigeria) Limited, New Horizon Flour Mills Limited and Quilvest Properties Limited with Flour Mills of Nigeria Plc.

According to Gbededo, the reason for restructuring is the need to streamline operations, reduce administrative costs, improve operating efficiency and derive full benefits of synergy in line with the company’s long-term strategic thrust.

“The enlarged FMN, upon completion of the restructuring, would be able to eliminate transfer costs of materials and operate at a higher level of efficiency which will drive down costs, make product pricing more competitive, improve profitability and enhance the bottom line of all stake holders,” Gbededo said.