Flour Mills of Nigeria Plc, largest Agro-allied and food group in Africa, recently announced its audited financial performance for the 2019/2020.
The report released on Monday, 3 August, 2020 to the Nigerian Stock Exchange, highlights a number of remarkable achievements despite the prevailing economic headwinds and difficult operating terrain in Apapa, Lagos.
In line with the group’s management focus of developing Nigeria’s self-sufficiency within the agricultural value chain, FMN has invested heavily, over N150 billion, in recent years to ensure Nigeria has the infrastructure and capabilities to create its own raw materials to support the food sector.
This is now clearly paying off as the Agro-allied segments saw strong profit growth in Oil and Fat and Protein, with a gross profit doubling both segments on an annual basis.
The Group realized a revenue growth of 9% (YoY) to N574 billion, Profit Before Tax also increased by 72% (YoY) to N17.5 billion and a whopping 184% (YoY) Profit After Tax increase to N11.4 billion.
Commenting on the result, Paul Gbededo, the Group Managing Director said: “The 2019/20 financial year was a remarkable year for our Group and I am really pleased with the result. Our Profit Before Tax saw a remarkable increase of 72% to N17.5 billion, while our Profit After Tax nearly tripled from N4 billion last year to N11.4 billion in the current year.
“This is partly attributable to the improved performance of our Agro Allied Businesses and in line with our strategy to continue to grow the wealth of our shareholders.”
He further stated: “We will remain focused on increasing operational efficiency within the group as we continue to implement our accelerated cost optimization plans across all businesses to ensure profitability in the new operating environment.”