June 3, 2024/CSL Research

In its FY 2024 (FY ended 31 March 2024) result, Flour Mills of Nigeria Plc’s (Flourmill) Revenue was up 48.8% y/y to N2.29tn from N1.54tn in FY 2023. On a q/q basis, the company’s Revenue increased by 23.2% to N732.36bn in Q4 2024 from N594.55bn in Q3 2024. In FY 2024, the Flour milling giant sustained its upbeat topline growth with an all-round growth in all its Revenue segments as Revenue from its Food, Agro-Allied, Sugar and Support Services grew to N1.51tn (+50.9% y/y), N332.93bn (+17.2% y/y), N383.93bn (+84.3% y/y) and N65.00bn (+38.9% y/y) respectively.

The company’s Cost-of-Sales (adjusted for depreciation) increased to N1.99tn (+48.9% y/y) in FY 2024 from N1.34tn in FY 2023. Consequently, Flourmill recorded Gross Profit of N301.12bn (+48.5% y/y) in FY 2024 from N202.69bn in FY 2023 bringing its Gross Profit Margin to 13.1% in FY 2024 almost at par with 13.2% in FY 2023.

Flourmill’s total Operating Expense (adjusted for depreciation) grew 28.7% y/y to N63.86bn in FY 2024 from N49.61bn in FY 2023. This was largely driven by significant growth in its Selling and Distribution Expense (adjusted for depreciation), which was up 57.4% y/y to N21.85bn in FY 2024 from N13.88bn in FY 2023. Its Administrative Expense (adjusted for depreciation) also grew to N42.01bn (+17.6% y/y) from N35.73bn in the prior year.

Flour Mills Nigeria, FY 2024 (Nm)

EBITDA rose to N243.60bn (+51.1% y/y) while EBITDA margin increased marginally by 0.2ppts to 10.6% in FY 2024 from 10.5% in FY 2023. Flourmill’s Depreciation charge rose by 10.9% y/y to N35.47bn in FY 2024 from N31.99bn in FY 2023 bringing its Operating Profit to N208.13bn (+61.0% y/y) in FY 2024 from N129.25bn in FY 2023.

The company’s Finance Income increased significantly to N4.64bn in FY 2024 from N718m in FY 2023 driven by an increase in interest income on its short-term investments and bank deposits. On the flip side, Flourmill’s Finance Cost grew significantly to N208.82bn (+139.4% y/y) largely driven by a strong growth in its foreign exchange loss to N137.46bn in FY 2024 from N31.48bn in FY 2023. Additionally, rise in interest expense on its issued bonds and commercial papers to N21.30bn in FY 2024 from N5.33bn in FY 2023 further pressured the company’s Finance Cost in 2024. Overall, Net Finance Cost increased to N204.18bn in FY 2024 from N86.49bn in FY 2023.

Profit Before Tax came to N3.95bn in FY 2024, down from N42.75bn in FY 2023. However, the company’s Minimum Tax Expense of N4.19bn in FY 2024 led to a Loss of N237m in FY 2024 from N39.78bn in FY 2023. A Tax Credit of N3.78bn in FY 2024 brought the company’s Net Profit to N3.54bn in FY 2024 compared with N29.50bn in FY 2023.

The company’s management proposed a dividend of N1.80/share in FY 2024 from N3.22/share in FY 2023. Currently, Flourmill has a dividend yield of 4.74%.

We have a Buy recommendation on Flourmill with a target price of N49.82/s. Current Price: N38.00/s.

Kindly click on the below link to download the full report.

​Flourmill FY 2024 Quick Take.pdf​​​