FMN records strong revenue growth of 34% in Q2 2023/24 despite challenging market dynamics
NIGERIA – Flour Mills of Nigeria Plc, one of the largest foods and agro-allied groups has experienced continued strong revenue growth of 34% (Year on Year) for the period ending September 30th, 2023.
Revenue grew to N964.6 billion (US$1.2B) year-on-year while Gross profits rose 53% to N105.5 billion (US$131M).
Flour Mills Nigeria Plc is a flour milling company in Nigeria with business interests in food production, packaging, agricultural industries, port operations logistics, and real estate.
The company manufactures and sells past, noodles, edible oil, and refined sugar as well as livestock feeds; supplies fertilizer; manufactures and markets laminated woven polypropylene sacks and flexible packing material; and grows and processes sugar cane, oil palm, fresh tropical fruit, poultry, and cassava.
According to the report, the Group’s main revenue driver for Q2 23/24 was its Food segment, which grew by 50% and was driven by pasta, noodles, and semolina.
The Sugar business saw a 67% increase in revenue, attributed to increased demand for brown sugar and solid base demand.
FMN continued its strong cash generation, with cash balances soaring by an impressive 262% year-on-year, reaching N214.2 billion. This financial strength provides the company with the agility to reinvest in its operations and explore strategic growth opportunities.
These results were achieved despite challenging market dynamics and unfolding global events like inflationary strains and the aftermath of COVID-19 showing the strength of the Group’s business model and underscoring the Group’s ability to adapt to evolving market conditions while delivering value to its stakeholders.
In the face of Nigeria’s economic challenges, FMN’s ability to maintain growth and deliver value to its stakeholders is still based on its strategic positioning and careful financial management.
Beyond achieving these financial results, FMN maintains a strong commitment to contributing to Nigeria’s economic development.
The company’s prospects in the PowerCo setup is set to enhance expansion plans and operational capabilities, create jobs, and stimulate growth, for the betterment of the Nigerian economy.
Mr. Boye Olusanya, Group Managing Director/Chief Executive Officer of FMN, expressed his optimism for the future, stating,
“We are excited about the potential for Q2 23/24 and the foreseeable impact of this financial growth for the organization.”
“As we navigate through emerging marketing challenges, we will continue to work with all our stakeholders in driving the Group’s vision and propagating a sustainable business.”
The total indicative share trading liquidity for Flour Mills Nigeria PLC (FLOURM.ng) in the past 12 months, as of 4th October 2023, is US$16.69M (NGN9.78B). An average of US$1.39M (NGN815.32M) per month.
