Flour Mills records 51% increase in revenue

Flour Mills of Nigeria (FMN) has recorded an annual revenue increase of 51 per cent across all business segments.

The company’s audited financial statement for the year ended March 31, which showed that the group continued to demonstrate resilience and strong performance across food, agro-allied and support segments, “delivering top-line growth of 57% in Q4 and 51% in FY22, behind strong volume growth and favourable mix”.

In a statement on Wednesday, Flour Mills noted that it recorded continued investments in local content, including remarkable improvements in the agro-allied business segment following increase in local demand and export operations thereby contributing 47 per cent (N19 billion) to the group’s profit before tax.

Profit before tax reached N41 billion, up from N37 billion in 2020/2021 (11 percent year-on-year growth).

The company added that it strengthened its position as the market leader in flour, semolina and pasta manufacture as it obtained approval for the acquisition of Honeywell Flour Mills Plc.

According to the statement, the food segment grew by N270 billion due to higher B2B volumes and growth in core B2C categories as the company expanded focus on local content.

The group also continued to increase and diversify investments in B2C redistribution infrastructure with the rollout of 226 vans to enhance penetration of new business partners, especially into rural areas and to support the technology driven market channels.

The oil and fats business of the company grew its revenue by 58 per cent, while pre-tax profit margin expanded by 141 percent, year-on-year, driven by improved export operations (revenue up 26 per cent).

Commenting on the result, Omoboyede Olusanya, group managing director, Flour Mills of Nigeria, said: “We remain committed to implementing our long-term plan with further investments in local content via product innovation across our five major value chains. Our substantial underlying earnings demonstrate our commitment to achieving sustainability as we drive to achieve food security in the country, given the challenging operating environment over the years.”

“With the acquisition of Honeywell Flour Mills Plc. (HFMF) and the attendant differentiated offers, our portfolio continues to evolve, strategically positioning the Group for opportunities from the African Continental Free Trade Area (AfCFTA).

“With the appointment of our third female board member and the promotion of gender diversity throughout our business segments, our sustainability agenda made more strides in line with our long-standing commitment to women’s empowerment. In addition, we developed a local content, food security, and nutrition board committee to improve the well-being of our consumers, assist in regenerating and strengthening the farming communities in our supply chains, and promote local economic development.

“In line with our strategy, we will continue to increase operational efficiency with accelerated plans for cost optimizations across the Group. This will ensure that we are on course to continue to create value for our shareholders in the long run.”