Flour Mills of Nigeria Plc has reported a 97 per cent decline in its profit for the nine months ended December 2023.
The firm’s unaudited financial results filed with the Nigerian Exchange Limited showed profit after tax dropped to N257.99m in 2023 from N10.02bn in 2022.
The company’s performance was affected by N120bn operating losses and N53.43bn finance costs it recorded during this period.
However, revenue grew 40 per cent year-on-year to N1.56tn and the gross profit improved by 123 per cent to N230.66bn.
In a statement accompanying the results, the Company Secretary/ Group Director, Legal Services of FMN, Umolu, Joseph, revealed that for the third quarter, the firm saw strong growth driven by investments into its regionally targeted affordable food brands, YTD Auntie B Pasta, Semovita and MaiKwabo Pasta, whose volumes grew by 58 per cent compared to the previous year.
“For the quarter, profit before tax rose by 29 per cent to N8.5bn.
FMN launched a Power Company in Q3, thereby further optimising its structure and operational efficiencies.
Speaking on the group’s agile business strategy, the Group Managing Director/Chief Executive Officer, Mr Boye Olusanya stated, “The success and sustenance of the FMN Brand is a promise made to all our shareholders/stakeholders. Our collective action as a group is, therefore, geared towards keeping this promise.
“Progressively, we shall continue to boost our global competitiveness and viability to ensure that FMN is positioned to thrive amidst unprecedented environmental changes. In addition, the launch of the power company, will further improve the efficiencies and transform our structure/operations.”
Also commenting on the group’s performance, the group’s Chief Finance Officer, Anders Kristiansson, said, “Our consistent execution and growth underscores FMN’s financial and operational resilience. As we drive more efficiencies across the group, we expect to continue delivering value in line with our long-term strategic plan.”
Source: The Punch