By InvestAdvocate
Lagos (INVESTADVOCATE)-Flour Mills of Nigeria Plc on Thursday reported a group profit after tax (PAT) of N14.4 billion for the period ended March 31, 2016 compared to N8.47 billion recorded a year ago.
Similarly, profit before tax (PBT) of the consumer goods firm grew to N11.49 billion from N7.72 billion posted the same period of 2015.
Revenue of the company increased from N308.75 billion in 2015 end compared to N342.58 billion declared in the review period of 2016 end.
“The strong improvement in revenue and profitability was primarily driven by volume growth and efficiency gains, while benefits arising from the sale of investment in our associate company – UNICEM helped to improve the bottom line,” Paul Gbededo CEO of the company said.
According to him, the good news is that Management is determined to further restructure our operations, streamline our business operations to focus on core businesses and constantly monitor and manage our costs optimally to hedge against further economic challenges which might evolve. It is also noteworthy that Management is resolute in ensuring that sustainable returns and dividends from the Group’s agro allied investments are properly harnessed by maximizing local content in the Group’s products, bye- products and processes.
“Our confidence in the future prospect of our Company is demonstrated by the fact that despite daunting economic challenges to our business, our directors are proposing to our shareholders at the forthcoming Annual General Meeting, the declaration of a total of N2.62 billion (2015- NO.5 billion) representing Dividend payment of NI.00 (2015 – N2.10) per ordinary share of 50 kobo each subject to Withholding Tax ac appropriate rate. We wish to assure our esteemed shareholders of our commitment to delivering superior shareholder value.
During the year FMN increased its already substantial investment in its Agro allied businesses where it now grows and processes maize, soy beans, sorghum, sugar cane, palm oil, rice, cassava and poultry and our dom1nanc supply of Fertilizer and Agra Sacks to the Nigerian market. FIRM continues to be one of the major promoters of the Agricultural Transformation Agenda of the Federal Government which its on-going agro-allied investments aimed at creating jobs and stimulating economic activities in urban and rural areas. FMN’s goal is to be involved at all stages of the food value chain where a profitable and sustainable Agro-Allied platform of cultivating and processing locally produced raw materials wi\I ensure the growth and success of our Food Business. We are mindful of the importance for our agricultural operations to be profitable, sustainable and environmentally friendly.
“We shall continue to leverage on the unassailable quality of our flagship product, Golden Penny Flour; the growing popularity and market acceptability of our sugar brand; our continuous investment in new milling technology; our major investments In Agro Allied businesses; development and introduction of new products in response to evolving consumer expectations; and, our strengthened Pan Nigerian products distribution network to generate Improved earnings and deliver superior shareholder value,” Gbededo CEO of the company said.
Shares of Flour Mills at the close of trading on the domestic bourse declined 0.92 percent to N21.50 from N21.70 posted the previous session; losing 0.20 kobo per share.
Click here to download Flour Mills of Nigeria Plc Results for the Year Ended March 31, 2016
