…As Pasta, Noodles, Semolina Drives 68% of Q2 Revenue
Flour Mills of Nigeria Plc (FMN) has reported its revenue increased by 34% year-on-year to N964.6 billion in the first half of the year.
Recorded in its financial result, the company also reported strong revenue growth of 33% year-on-year, reaching N508.3 billion in the second quarter (Q2) ending on September 30, 2023.
According to the company, it recorded a gross profit growth of 53% to N55.2 billion. The Group reported a profit before tax of N1.2 billion, an increase from the previous year, with a profit after tax of N0.8 billion.
The Group’s main revenue driver for Q2 23/24 was its Food segment, which grew by 50% and was driven by pasta, noodles, and semolina. FMN noted that the Food segment remained the largest contributor, generating 68% of Q2 revenues.
The Sugar segment saw a 67% revenue increase owing to higher sales of brown sugar and strong base growth. The Agro-allied segment recorded a 28% drop in revenues due to lower fertilizer sales.
Strong cash generation continued with cash balances up 262% year-on-year to N214.2 billion.
FMN is setting up a dedicated power company, along with other initiatives, to optimize costs and boost competitiveness.
FMN continued its strong cash generation, with cash balances soaring by an impressive 262% year-on-year, reaching N214.2 billion. This financial strength provides the company with the agility to reinvest in its operations and explore strategic growth opportunities.
These results were achieved despite challenging market dynamics and unfolding global events like inflationary strains and the aftermath of COVID-19 showing the strength of the Group’s business model and underscoring the Group’s ability to adapt to evolving market conditions while delivering value to its stakeholders.
In the face of Nigeria’s economic challenges, FMN’s ability to maintain growth and deliver value to its stakeholders is still based on its strategic positioning and careful financial management.
Beyond achieving these financial results, FMN maintains a strong commitment to contributing to Nigeria’s economic development. The company’s prospects in the PowerCo setup, is set to enhance expansion plans and operational capabilities, create jobs, and stimulate growth, for the betterment of the Nigerian economy.
Mr. Boye Olusanya, Group Managing Director/Chief Executive Officer of FMN, expressed his optimism for the future, stating, “We are excited about the potential for Q2 23/24 and the foreseeable impact of this financial growth for the organisation. As we navigate through emerging marketing challenges, we will continue to work with all our stakeholders in driving the Group’s vision and propagating a sustainable business.”