Flour Mills records N29.504 billion profit
By Felicia Nwosu
Flour Mills of Nigeria Plc. has released the report of its financial performance on the floor of the Nigerian Exchange Limited, with a profit growth of 5.32 percent to N29.504bn at the end of the financial period, March 2023, against N28.015bn which was previously recorded in the same period in 2022.
The annual report of the indigenous Foods and Agro Allied Company revealed that it also recorded a 32 per cent growth in its revenue from N1.163tn to N1.539tn.
The food giant noted that it was a mixed bag of economic swings as its unaudited financial results for the three months, which ended 30 June 2023, witnessed various pressures that led to a loss of N9.337bn, despite recording a higher performance of N5.812bn in 2022 as gain.
Reacting to its financial report, FMN noted that macroeconomic factors, exacerbated by the upward forces driving the movement of foreign exchange markets, caused a harsh reduction in its operating profit due to foreign exchange loss of N22.5bn in the last quarter as well as N9.3bn.
The company in its report added that without the devaluation of the exchange rate, the operating profit would have increased by 52 percent. It remains optimistic that, with the current government monetary policies at stabilising the forex market, and the management’s continued effort in sales and marketing activities, the company will see significant improvement in profit generation in the coming period.
Also, with reinforced hope for continued progress, the board of the company proposed that a total dividend of N9.225bn be paid to shareholders. Comparing this with the previous year, it said this is five percent higher than N8.815bn paid at the end of March 2022, which represented a dividend of N2.25 (2022: N2.15) per ordinary share of 50 kobo each.
Meanwhile, FMN added that within the period under review, the company’s assets grew by 64.47 percent to N1.097tn compared to N667bn in 2022, while total liabilities surged by 85.13 percent to N872.171bn from N471.107bn.
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