Flour Mills of Nigeria (FMN) Plc said it recorded double-digit revenue growth of 38% up to N720.5 billion from N522.8 billion recorded in the similar period of 2021 by taking advantage of exchange-related pricing and a favorable mix of its operations.
The company’s unaudited half-year financial figures for September 2022 show that the company’s advances in the food and agro-allied business, as well as a favorable mix and some exchange-related pricing, supported the half-year growth.
The food industry provided N445.6 billion, or 61.8 percent of the total sales, with a strong performance. Similar to that, the business’s agro-allied division provided N153. 9 billion, or 21.35 percent of the overall income.
The company claims that despite the difficult macroeconomic environment and pressure from purchasing power inflation, the performance was caused by a pushed effort for higher market penetration and increased consumer participation.
The company’s cost of sales climbed by 39% to N651.8 billion from N468.4 billion during the same time in 2021, according to the financial report. The company’s profit after tax decreased by 46% to N5.7 billion from N10.5 billion in 2021 as a result of the rise in the cost of sales.
Boye Olusanya, Group Managing Director of FMN Plc, commented on the outcome, stating that the group is integrating the Honeywell business to achieve the anticipated synergies with a focus on restructuring the balance sheet to reduce FX exposure and ensure manufacturing stability, adding that this is anticipated to produce strong results over the long term.
He said, “FMN continues to meet the needs of the consumers with our sustainable route-to-market structure and new product initiatives across our touchpoints.
“As we can see in the H1 22/23 report, the Sugar segment recorded a significant rebound compared to H1’21/22, a clear demonstration of the Group’s continuous and significant investment in the sugar value chain and across all our key value chains and sectors. As the Group continues to make headway in our backward integration activities through various strategic efforts, we remain committed to feeding the nation, every day.
“Also, our investment in product innovation and supply chain optimisation was sustained in furtherance of the execution of our long-term strategy. As part of the Group’s strategic roadmap, FMN continues to put in place a business continuity plan to safeguard its supply chain and food production processes to ensure that Nigerians can continue to have access to their daily nourishment.”