FLOUR Mills of Nigeria (FMN) Plc, a leading integrated food business and agro-allied group, in its 2019 Half Year result has posted 16 per cent increase in its profit after deduction of tax.
According to the unaudited financial statement released to the Nigerian Stock Exchange (NSE), FMN Plc’s profit after tax increased by 16 per cent to N5.9 billion when compared to corresponding period of year 2018 where N5.1 billion was reported.
The group showed a volume growth of six per cent as its profit before tax grew by four per cent to N8.6 billion, compared to N8.3 billion in H1, 2018.
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The company’s deleveraging strategy and lowered interest rates continue to achieve desired results as it reduced its finance cost by 21 per cent to N8.8 billion, compared to N11.2 billion in H1, 2018.
Commenting on the result, Paul Gbededo, the Group Managing Director, said: “We have posted an impressive result for the first half of the year with profit after tax increasing by 16 per cent to N5.9 billion when compared to last year. I am confident that we are on track to achieve our growth targets for the year as we continue to improve operational efficiency, reduce our finance cost and ultimately grow the wealth of our shareholders by increasing earnings per share.”
In a statement, the company noted that despite the challenging operating environment and continuing pressures on the profitability of most companies in the fast-moving consumer goods sector, FMN Plc’s unaudited half year result reflects the management’s strategy and commitment to growth and value creation.
“Although the revenue from some of our food businesses was adversely impacted by lower volumes, pasta and noodles recorded positive growth in base products, and the sugar business continued to show remarkable growth in line with projections, it said.