Flour Mills of Nigeria (FMN) Plc released its audited financials for the year ended 31st March 2021 penultimate week showcasing record improvement in organic sales growth and profitability.
The Group delivered an impressive Financial Year (FY) topline growth across all business segments with average revenue growth of 34 percent, led by growth in Agro-allied combined with investments in route-to-market and accelerated expansion in the business to consumer (B2C) segment.
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Strong organic growth was seen with a sustained progress in product innovations and transformation in exciting markets as well as operational efficiencies.
Speaking to Daily Trust on the results, the Group Managing Director, Omoboyede Olusanya, said Flour Mills emerged 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 its 60 years history.
“FMN attained strong revenue growth, largely driven by the increase in volumes of production with a six percent increase compared to the previous year. Financial Year (FY) and Q4’21 Profit After Tax (PAT) more than doubled as it reached N25.7 billion, up from 11.4bn in 2019/2020 (127% YoY Growth).
PAT increased off the back of continued bottom-line expansion in the business to consumer (B2C) segments and agro-allied businesses,” Olusanya said.
“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,” Olusanya added.
Backward integration scheme
In the year under review, the group increased its focus on local content in group-wide supply chains and investments in backward integration as part of its long-term strategy to contribute to economic growth.
FMN Group’s 60-year heritage is driven by visionary leadership and a sustainable business and investment strategy. This positions the group as one of the most critical growth-drivers in Nigeria’s food and agriculture industry.
Presently, FMN is supporting local wheat development with a strategic partnership with the Flour Milling Association of Nigeria (FMAN).The group has aggregated over 800 tons of wheat across three states and has provided 493 farmers with mechanised harvesting and threshing services.
In the audited financials for the year ended 31st March 2021, the company successfully issued N30bn corporate bond with a tenor of five and seven years at 5.50% and 6.25% respectively to replace expensive short-term facilities
Contributing to nation dev’t
In one of the most challenging years in recent history, the FMN Group activated a comprehensive response and mobilised considerable resources including a resilient global supply chain to help the federal government manage the impact of the COVID-19 pandemic on the nation.
For instance, it supported vulnerable communities in 12 states with a NGN 400 million food donation programme, contributing an additional N1 billion to the CBN led Nigerian Private Sector Coalition against COVID-19; CaCOVID.
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