Providing an in-depth assessment of its market’s current performance, Flour Mills of Nigeria Plc. has revealed that it recorded an impressive growth with a revenue rise of N508.27bn for the second quarter of its 2023/2024 financial year driven by noodles and semolina segments of its portfolios.
The “home of food” company said this was propelled by some positive market dynamics around some of its food segment, which generated 68 per cent revenue for the period.
Information made available by the company through the Nigerian Exchange Limited, showed that Flour Mills’ food revenue grew 50 per cent and was driven by volume growth in pasta, noodles and semolina.
Joseph Umolu, the Company Secretary/Group Director, Legal Services, said, on behalf of the board in an explanatory note, that the company has experienced continued strong revenue growth of 34 per cent (year-on-year) with the gross profit growth of 53 per cent ahead of revenue.
“The operating profit slightly dropped due to foreign exchange loss of N28.7bn in the Q2 leading to the Group’s loss before tax of N8.1bn. Management remains optimistic that with the current government monetary policies at stabilizing the forex market, and management continuing effort in sales and marketing activities geared towards boosting our top line while keeping costs under control, we expect to see improvement in our operations in the coming period,” Umolu said.
Flour Mills also added that its sugar segment also saw an increase of 67 per cent increase in revenue owing to higher sales of brown sugar while the agro-allied segment recorded a 28 per cent dip in revenue due to lower fertilizer sales.
He added, “We are excited about the potential for Q2 23/24 and the foreseeable impact of this financial growth for the organization. As we navigate through emerging marketing challenges, we will continue to work with all stakeholders in driving the Group’s vision and propagating a sustainable business.”
The analysis also showed that in the Q2 results, the gross profit rose to N55.22bn from N35.54bn in the corresponding quarter 22/23 while the profit after tax stood at N816m from N204.11m marking about a 299.79 per cent increase.
Meanwhile, it stated that, for the six-month period ended September 2023, FMN recorded a loss of N8.521bn in contrast to a gain of N5.70bn in 2022. An increase in finance cost to N34.61bn from N22.32bn in 2022 partly led to the loss recorded. The company also blamed forex for the dip in its operating profit. Its revenue for the six months stood at N964.65bn from N720.58bn.