The Flour Mills of Nigeria Plc has reported a 127 per cent increase in its profit after tax for the year ended March 31, 2021.
The company said its after-tax profit rose from N11.4bn in 2020 to N25.7bn in 2021.
In a statement by the company, Flour Mills of Nigeria said its average revenue across its business segment grew by 34 per cent, led by growth in its agro-allied businesses.
The company said it had successfully issued a N30bn corporate bond with a tenor of five years at 5.50 per cent and 6.25 per cent respectively to replace expensive short-term facilities.
Commenting on the results, Flour Mill’s Group Managing Director, Omoboyede Olusanya, said, “Flour Mills emerges from the prevailing COVID-19 environment as a stronger, more resilient, flexible, and confident business as a result of the collective strategic actions made over our 60-year history.
“I want to thank all our employees for their patience and hard work as we consistently adapted to the year’s challenges and invested significantly in our purpose of feeding the nation every day.
“FMN is now harvesting the fruits of these efforts and remains committed to braving a continuously uncertain environment with cautious optimism, innovation, portfolio advancement and other strategies outlined in our recent sustainability report.”
While commenting on the company’s performance, analysts at Cordros Capital Limited said they appreciated the company’s maintenance of broad-based improvements across all its business units, which reflected positive results from product innovations, investments in its route to market strategy and operational efficiencies.
They said, “Similarly, the company completed the restructuring of its agro-allied segment, which in our opinion, will continue to support revenue growth. However, we note that the reopening of land borders, weak macroeconomic fundamentals, and elevated operating cost remains a significant headwind to volume growth and profitability.
“From a market standpoint, we expect investors to react positively to the company’s solid earnings. Our estimates are under review.”
Punch