Flour Mills of Nigeria Plc, a food and agro-allied company, increased its profit by 5.32 percent to N29.504 billion at the end of the fiscal period, March 2023, from N28,015 billion at the same time in 2022.
The Punch reported that the business also reported a 32% increase in income from N1.163tn to N1.539tn in its Annual Report, which was filed with the Nigerian Exchange Limited on Tuesday.
FMN also reported a N9.337 billion loss in its unaudited financial performance for the three months ended 30 June 2023. In 2022, the corporation made a profit of N5.812 billion.
FMN Plc stated in accompanying notes that its operating profit declined dramatically due to a foreign currency loss of N22.5 billion in the previous quarter, resulting in a loss before tax of N9.3 billion.
“Without the exchange rate depreciation, operating profit would have increased by 52%. With the current government’s monetary policies aimed at stabilizing the forex market, and management’s continued effort in sales and marketing activities aimed at boosting our top line while keeping costs under control, we expect to see significant improvement in profit generation in the coming period,” the report said.
The company’s board of directors requested a total dividend of N9.225 billion to be distributed to shareholders. This is 5% more than the N8.815 billion paid at the end of March 2022, corresponding to a dividend of N2.25 (2022: N2.15) per ordinary share of 50 kobo.
During the review period, the company’s assets increased by 64.47 percent to N1.097tn from N667bn in 2022, while total liabilities increased by 85.13 percent to N872.171bn from N471.107bn.
FMN bought 77.75 percent of Honeywell Flour Mills Plc’s voting rights on May 12, 2022. According to the firm, the deal was made as part of “FMN Group’s global growth strategy, to create a stronger and more resilient national champion for Nigeria and further enhance FMN Group’s global growth strategy.”
The purchase increased customers’ access to a wider variety of cutting-edge products and allowed FMN to grow its group operations by combining the strategic talents that are particular to each company.
The Group’s primary activities include flour milling, the production of pasta, noodles, edible oil, and refined sugar, the production of livestock feeds, farming, and other agro-allied activities, the distribution and sale of fertilizer, the manufacturing, and marketing of laminated woven polypropylene sacks and flexible packaging materials, etc
The corporation was established in Nigeria as a private limited liability company on September 29, 1960, and was converted to a public liability company in November 1978. Excelsior Shipping Business Limited, a Liberian business, is the ultimate holding company, with 2,597,314,890 shares representing a 63 percent interest.
