The Flour Mills of Nigeria Plc has recorded a top-line growth for the full year across its business segments with revenue growing by 51 percent Y-o-Y.
This was made open in its audited financials for the year ended March 31, 2022.
Noting that the outcome demonstrates solid performance across all key segments, the group continues to demonstrate resilience and strong performance across food, agro-allied and support segments delivering top-line growth of 57 percent in Q4 and 51 percent in FY22, behind strong volume growth and favourable mix.
Continued investments in local content including remarkable improvements in the agro-allied business segment following increase in local demand and export operations, contributed 47per cent (N19bn) to the group’s Profit Before Tax (PBT).
PBT reached N41 billion, up from N37 billion in 2020/2021 (11% YoY growth).
FMN strengthened its position as the market leader in flour, semolina and pasta manufacture as it obtained approval for the acquisition of Honeywell Flour Mills Plc (HFMF).
Omoboyede Olusanya, Group Managing Director, said FMN remains committed to implementing its long-term plan with further investments in local content via product innovation across its five major value chains. “Our substantial underlying earnings demonstrate our commitment to achieving sustainability as we drive to achieve food security in the country, given the challenging operating environment over the years. With the acquisition of HFMF and the attendant differentiated offers, our portfolio continues to evolve, strategically positioning the group for opportunities from the African Continental Free Trade Area (AfCFTA).He said with the appointment of the company’s third female board member and the promotion of gender diversity throughout the business segments, “our sustainability agenda made more strides in line with our long-standing commitment to women’s empowerment. In addition, we developed a local content, food security and nutrition board committee to improve the well-being of our consumers, assist in regenerating and strengthening the farming communities in our supply chains and promote local economic development..
In line with our strategy, we will continue to increase operational efficiency with accelerated plans for cost optimizations across the Group. This will ensure that we are on course to continue to create value for our shareholders in the long run.”
Our food segment grew by N270 billion due to higher B2B volumes and growth in core B2C categories as we expanded our focus on local content. The Group also continued to increase and diversify investments in our B2C redistribution infrastructure with the rollout of 226 vans to enhance penetration of our new business partners, especially into rural areas and to support the technology driven market channels.
Our oil and fats business grew revenue by 58%, while pre-tax profit margin expanded by 141% y-o-y, driven by improved export operations (revenue up 26%).
The growing demand in the north and by other industrial customers propelled our introduction of brown sugar, which is locally grown on our farms in Sunti, to the market. At the same time, our Backward Integration project in sugar production recorded a 21% improvement in revenue driven by increased volume. However, the rise in raw material costs largely impacted the sugar segment’s operating performance.