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Flour Mills declares N4.368bn profit after tax

By BusinessNews Staff on November 7, 2014

Flour Mills of Nigeria Plc said it made a profit after tax of N4.368bn and the profit before tax of N5.773bn in the six months ended September 30, 2014.

The figures, however, represented a decline from the N7.332bn PBT and N5.831bn PAT that the company reported in the corresponding period of 2013.

The group’s result for the six months under review, which it filed with the Nigerian Stock Exchange, showed that it generated a revenue of N165.540bn in the review period.

The group also declared a gross profit of N17.438bn and operating profit of N12.411bn.

Its total assets at N325.499bn represented a 9.5 per cent growth on the N297.249bn it posted at the end of December 2013.

Flour Mills had paid its shareholders a dividend of N5bn for the financial year ended March 31, 2014.

The figure, which was five per cent higher than the dividend paid for the previous year, translated into N2.10 per share to shareholders.

The Group Managing Director, Flour Mills, Mr. Paul Gbegedo, had explained that the dividend payment followed an annual performance, which was in line with the group’s objectives.

He said, “FMN group performed in line with our objectives. Our sales went up by 10 per cent. The group’s profit for the year excluding Golden Sugar Company went up 22 per cent year-on-year.

“We have strong volume growths in our core divisions (food and agro-allied), while enhanced overhead expenses management impacted positively on our bottom line. Improved results mostly from UNICEM where we have about 30 per cent stake are also impacting positively on our group result.”

In September, Gbededo explained during a ‘Facts behind the figures’ presentation at the NSE that the group was confident of stronger returns after restructuring.

He had said the restructuring, strategic business acquisition and investment in its core food business and backward integration programme were in furtherance of the group’s long-term business model and growth strategy.

For instance, he said the group had in April 2013 successfully inaugurated a 750,000 metric tons per year sugar refinery built at a cost of $250m.

Gbededo, who said Flour Mills “is built on three major pillars – food, agro-allied and support services,” told stakeholders at the event that it would soon begin optimum production of locally grown rice in the country.

The move, he explained, was in line with the group’s vision of becoming a market leader in its businesses.

He said, “Nigeria consumes about four million metric tonnes of rice and we need about one million acres of land to achieve that. We want to start aggregating by involving others in the supply chain.”

[Punch]

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