The company said it achieved a strong performance despite increased challenges of doing business, particularly the recent gridlock in Apapa, Nigeria, which negatively affected operations. Roads into and out of the port city of Apapa are falling apart causing traffic to back up for days, according to media reports. Perishable goods are spoiling as they sit in trucks exposed to sun and rain. One driver reported it took two days to move 2 kilometers.
“Going forward, management is positive that with increased sales volumes and marketing activities geared at boosting our top line coupled with the relative stability in the foreign exchange market and continuous controls on overheads and financial expenses, the coming quarters should result in improved performance,” the company said.
Profit before tax was naira 6.2 billion, up from naira 5.9 billion. Revenue for the quarter was naira 149 billion, up from naira 119 billion.
Revenue for the Food Segment was naira 115.8 billion, up from naira 90.6 billion. Profit before tax also increased to naira 6.45 billion from naira 4.58 billion in the same quarter last year.
In the Agro Allied segment, Flour Mills of Nigeria reported quarterly revenue of naira 27.5 billion, up from naira 25.2 billion. The company reported a loss in the segment of naira 1.7 billion compared to a profit of naira 1.25 billion in the same quarter a year earlier.