FMN reports 97% dip in net profits during Q3, 2023, revenue sustains 40% jump
NIGERIA – Flour Mills Nigeria PLC, listed on the Nigerian Stock Exchange under the Food sector has reported a 97% decline in its profit for period ended in December 2023, according to the recently released interim report for the third quarter.
The firm’s unaudited financial results showed that profit after tax plunged to N257.99M (US$271000) in 2023 from N10.02bn (US$10.5M) in 2022.
According to the report, the company’s performance was affected by N120bn (US$126M) operating losses and N53.43bn (US$56.2M) finance costs it recorded during this period.
However, revenue grew 40% year-on-year to N1.56tn (US$1640M) and the gross profit improved by 123% to N230.66bn (US$242M).
In a statement accompanying the results, Umolu Joseph, the Company Group Director, Legal Services revealed that for the third quarter, the firm saw strong growth driven by investments into its regionally targeted affordable food brands.
YTD Auntie B Pasta, Semovita and Mai Kwabo Pasta volumes grew by 58% vs LY, with the main Golden Penny brand also showing solid growth backed by continuous investments into the consumer value propositions.
Additionally, Gross Profit and Operating Profit improved strongly through mix, operational efficiencies, and pricing, thereby moderating the exchange rate impact in Q3.
Profitability also remained resilient, with profit before tax increasing 29% to N8.5 billion despite a volatile macroeconomic climate and foreign exchange headwinds.
“In the agro-allied segment, FMN achieved strong growth, led by the resilience of its Animal Feeds business, and increase in Export sales in our Oils and Fats business,” Umolu said.
Speaking on the Group’s agile business strategy, Mr. Boye Olusanya, the Group Managing Director/Chief Executive Officer of FMN stated “The success and sustenance of the FMN Brand is a promise made to all our shareholders/stakeholders.
“Our collective action as a Group is therefore geared towards keeping this promise. Progressively, we shall continue to boost our global competitiveness and viability to ensure that FMN is positioned to thrive amidst unprecedented environmental changes.”
Also commenting on the group’s performance, the group’s Chief Finance Officer, Anders Kristiansson, said,
“Our consistent execution and growth underscores FMN’s financial and operational resilience. As we drive more efficiencies across the group, we expect to continue delivering value in line with our long-term strategic plan.”
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