Nigeria’s leading integrated foods and agro-allied Group, Flour Mills of Nigeria Plc, owners of the iconic food brand – ‘Golden Penny,’ has announced an average revenue increase of 51 percent in its first quarter, driven by continuous improvement in the food category.
The Group’s first quarter results for the year 2021/22 showed further consistent remarkable performance with strong revenue growth and Profit After Tax increasing by 10% (YoY) to N5.4 billion despite headwinds.
Results from the first quarter which ended June 30, 2021 reflects FMN’s strong start with consistent topline growth and solid improvements in profit.
The Group’s revenue was N233.7 billion, compared to N154.6 billion in Q1 2020/21 (51% – YoY growth) – performance was impressive across all business segments underpinned by sustained demand in Agro-allied, particularly in Edible Oils and Fertilizer businesses, and continued improvements in the Food segment.
The Group’s Profit Before Tax was N7.3 billion, compared to N6.5 billion in Q1 2020/21 (12% – YoY growth). Volume and revenue continued to appreciate despite increases in international food prices and input costs during the review period. Profit After Tax was N5.4 billion, compared to N5.0 billion in Q1 2020/21 (10% – YoY growth).
FMN noted that increases in international food prices and input costs offset a 12 percent revenue group PBT over the review period, with a time lag to rectify the supply chain impact.
The Group further recorded an improved year-over-year growth earnings in its food division’s Edible oils and Fertilizers business, as well as a solid operational drive in its B2C segment. pledging to carry on with its long-term investment strategy in product development and route-to-market initiatives, with a strong emphasis on Backward Integration across all value chains.
Commenting on the result, Omoboyede Olusanya, the Group Managing Director, said: “The first-quarter result shows a strong start to the year and a promising indication of the business’s future as we pursue our strategy of operational efficiency and long-term growth. I am particularly pleased that we achieved an amazing topline growth and remained profitable, with Profit Before Tax increasing by 12% and Profit After Tax increasing by 10%.
“I envision even more organic growth across the group, fuelled by our expanding ethos of putting consumers at the heart of our business. As we continue to execute our long-term strategy of excellence-driven growth, I am optimistic that we will meet our year-end growth targets while improving operating efficiency, lowering finance costs, and ultimately increasing shareholder wealth.”
The Group attributed the steady development of its food business to strategic decisions and investments in route to consumer redistribution, including further investments in vans, automation of redistribution performance tracking, and improved dealer inventory management.
In the Agro-allied division, the oils & fats value chain continues to see strong revenue growth driven by export sales, while volumes in the fertilizer segment have increased as a result of the extension of blending plants in Bauchi State and a significant increase in the number of dealers onboarded during the quarter.