Flour Mills of Nigeria Plc has announced a performance for the 2023 half-year in its unaudited financial statement, showing impressive revenue growth across business segments, rising above the challenging macroeconomic environment.
Highlights of the half-year performance include 38% overall revenue increase in the reporting period to N721 billion, propelled by a favorable mix and some exchange related pricing.
Recorded revenue growth significantly averaged 36% across all business segments, while operating performance in the Food segment remained solid, notwithstanding a challenging environment with increased input prices and a somewhat softening volume base.
Golden Sugar recorded double-digit growth in revenue (51%) and a solid profit growth due to increase in volume and various customer engagement efforts to drive customer loyalty.
Notably the Group’s gross profit hit N33.2 billion, up from N25.7billion in H1’22 Commenting on the result and the Group’s strategic imperatives in the years ahead, Mr. Boye Olusanya, the Group Managing Director/Chief Executive Officer, said:
“FMN continues to meet the needs of the consumers with our sustainable route-to-market structure and new product initiatives across our touchpoints. As we can see in the H1 22/23 report, the Sugar segment recorded a significant rebound compared to H1’21/22, a clear demonstration of the Group’s continuous and significant investment in the sugar value chain and across all our key value chains and sectors. As the Group continues to make headway in our backward integration activities through various strategic efforts, we remain committed to feeding the nation, every day.”
In other highlights, the group’s operating performance in the Food segment remained solid; profit before tax for Agro-Allied remained at the level achieved the previous year; Sugar segment recorded a significant rebound compared to Q2 2021 as anticipated due to a normalized competitive playing field, increased route to market expansion into both new and rural markets, and increased customer engagement.
The Group noted that it is integrating the Honeywell business to realise the synergies anticipated with focus on restructuring the balance sheet to reduce FX exposure and ensure manufacturing stability. This is expected to lead to strong results in the long term.
Olusanya further disclosed that FMN’s investment in product innovation and supply chain optimization, was sustained in furtherance of the execution of the company’s long-term strategy.
“As part of the Group’s strategic roadmap, FMN continues to put in place a business continuity plan to safeguard its supply chain and food production processes to ensure that Nigerians can continue to have access to their daily nourishment” he said.
and then