July 30, 2024/CSL Research

In its Q1 2025 (3M ended 30-June-2024) earnings result, Flour Mills of Nigeria Plc’s Revenue was up 67.2% y/y and 4.2% q/q to N763.19bn from N456.38bn and N732.36bn in Q1 2024 and Q4 2024 respectively. This growth in revenue was driven by price increases across all product segments, while production volumes remained relatively stable. Specifically, the company’s revenue segments experienced the following growth:

§ Food: Increased to N489.37bn, up 61.2% y/y.

§ Agro Allied: Grew to N134.21bn, a rise of 68.0% y/y.

§ Sugar: Surged to N127.81bn, an impressive 92.2% y/y increase.

§ Support Services: Reached N11.80bn, up 85.4% y/y.

Flour Mills of Nigeria Plc reported an adjusted Cost of Sales of N663.46bn for Q1 2025, marking a 68.9% increase from N392.78bn in Q1 2024. This increase in costs resulted in a Gross Profit of N99.73bn for the quarter, up from N63.60bn in the same period last year. However, the company’s Gross Profit Margin decreased slightly to 13.1% in Q1 2025 from 13.9% in Q1 2024.

The company’s Operating Expenses, excluding depreciation, rose significantly to N26.31bn in Q1 2025, compared to N13.96bn in Q1 2024. This increase was driven by higher Selling and Distribution Expenses, which grew to N12.65bn from N5.14bn in Q1 2024, and Administrative Expenses, which increased to N13.66bn from N8.82bn in Q1 2024.

Flour Mills Nigeria, Q1 2025 (Nm)

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Though Flourmills reported an increase in net losses from its operations to N6.74bn in Q1 2025, higher than the loss of N3.25bn reported in Q1 2024, the company’s EBITDA increased to N65.99bn (+42.6% y/y) in Q1 2025 from N46.27bn in Q1 2024 while its EBITDA margin declined to 8.6% in Q1 2025 from 10.1% in Q1 2024. The company’s Depreciation was down by 3.3% y/y to N16.07bn in Q1 2025 from N16.63bn in Q1 2024. Overall, the company’s Operating Profit increased significantly by 68.4% y/y to N49.92bn in Q1 2025 from N29.65bn in Q1 2024.

The company’s Finance Income surged to N1.59bn in Q1 2025 from N168m in Q1 2024, however, its Net Loss on FX of N28.07bn (+24.6% y/y from N22.53bn in Q1 2024) and Finance Cost of N16.07bn (-3.3% y/y from N16.63bn in Q1 2024) brought its Net Finance Cost to N42.56bn in Q1 2025 from N38.99bn in Q1 2024. Despite the moderate rise in the company’s Net Finance Cost, Flour Mills of Nigeria Plc returned to profitability, reporting a Profit Before Tax of N7.36bn and a Profit After Tax of N6.98bn in Q1 2025, compared to a Pre- and Post-Tax loss of N9.34bn in Q1 2024.

We have a Hold recommendation on Flourmill with a target price of N49.82/s. Current Price: N46.00/s.

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

​Flourmill Q1 2025 Quick Take.pdf​​​​​

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