Flour Mills of Nigeria Records N1.1trn Revenue in Nine Months

Flour Mills of Nigeria Plc (FMN), Nigeria’s leading food and agro-allied business yesterday released of its unaudited  financial results  for the nine months((9M) ended December 31, 2022. The 9M results show remarkable revenue growth, from N825 billion to N1.114 trillion.

Overall revenue grew by 35 per cent across all business segments, with Food, Agro-Allied and Sugar all growing between 34 per cent and  39 per cent respectively. Gross profit stood at N103 billion, up 29 per cent   from N80.22 billion.

According to the company, total  results were affected by the integration of Honeywell Flour Mills Plc (HFMP) integration, which has been successfully ongoing since the takeover on May 12th, 2022. As anticipated, the acquisition involved some initial integration costs and Honeywell posted a loss of N10.3 billion by at the end of December 2022.

But the company, however,  noted that  Honeywell is well on track to realise and exceed the anticipated benefits from the acquisition.

Commenting on the  performance, the Group Managing Director, Boye Olusanya,  said:“The Q3 earnings trend is a clear demonstration of the Group’s commitment to carrying out its overall long-term strategy of maintaining growth and sustaining profitability by significantly investing in the development of local content through product innovation across our core value chains.

Also, as is established by the significant increase in revenue and growth from the Agro-allied category of the Group’s touch-points, we are committed to achieving economies of scale in food production via crop-specific value chain by increasing productivity and ultimately driving the nation’s attainment of food self-sufficiency.”

A further analysis of the results showed that FMN’s Food business recorded 36 per cent top-line growth largely due to continued focus on retail expansion and proactive pricing to cushion steep input costs.

Revenue in our Agro-Allied business grew by 39 per cent driven by robust performance across its categories. The Fertilizer business recorded a 64 per cent growth in revenues and 82 per cent profit growth driven by the inauguration of new fertilizer blending plant in May 2022. The oils and fat business grew by 54 per cent driven by increased volumes due to intensified milling activities while the animal feeds business reported 20 per cent top-line growth owing to increased product availability.

Golden Sugar recorded an impressive 34 per cent revenue growth; this was achieved due to increased volumes, various customer engagement and popularity of our locally produced brown sugar.