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Flour Mills Revenues up 51% in 2021 on Robust Demand Across Segments

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Flour Mills of Nigeria Group recorded an impressive top-line growth for the full year 2021 period across all business segments with revenues growing by 51% year on year.

The Group continued to demonstrate resilience and strong performance across Food, Agro-Allied and Support Segments.

It 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% (N19bn) to the Group’s Profit Before Tax.

Profit before tax reached N41 billion, up from N37 billion in 2020/2021 (11% YoY Growth).

Flour Mills of Nigeria Plc 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.

Flour mills revenues for the food segment grew by N270 billion due to higher B2B volumes and growth in core B2C categories as we expanded our focus on local content.

The Group also continued to increase and diversify investments in its 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 grew revenue by 58%, while pre-tax profit margin expanded by 141% y-o-y, driven by improved export operations (revenue up 26%).

The growing demand in the north and by other industrial customers propelled introduction of brown sugar, which is locally grown on farms in Sunti, to the market. At the same time, the Backward Integration project in sugar production recorded a 21% improvement in revenue driven by increased volume.

However, the rise in raw material costs largely impacted the sugar segment’s operating performance.

Commenting on the result, Omoboyede Olusanya, the Group Managing Director, 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.”

Incorporated in September 1960 and quoted on the Nigerian Stock Exchange since 1978, Flour Mills of Nigeria (FMN) Plc, owners of the iconic Golden Penny Food brand is one of Nigeria’s leading food and agro-allied companies.

With a broad basket of food products and robust pan-Nigerian production, distribution, and supply chain network, FMN is a fully integrated and diversified food and agro-allied group.

FMN group strives in its purpose to “Feed the Nation, Everyday” through its five core food value chains: Grains, Sweeteners, Oils and Fats, Proteins, and Starches. FMN creates value along the entire food chain with its “farm-to-table” model by providing inputs and know-how to farmers, aggregating and sourcing crops and raw materials to supply its world-class processing facilities across Nigeria, and distributing its innovative food brands to its customers.

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