Foods and agro-allied company, Flour Mills of Nigeria Plc, has revealed that its revenue of N508.27bn for the second quarter of its 2023/2024 financial year was driven by its food segment which generated 68 per cent of its revenue for the period.
In a press statement accompanying its condensed consolidated and separate interim financial statements for the period ended September 30 which was filed with the Nigerian Exchange Limited, Flour Mills said that the food revenues grew 50 per cent driven by volume growth in pasta, noodles and semolina.
The sugar segment also saw an increase of 67 per cent increase in revenue owing to higher sales of brown sugar while the agro-allied segment recorded a 28 per cent dip in revenue due to lower fertilizer sales.
In the group’s Q2 results, the gross profit rose to N55.22bn from N35.54bn in the corresponding quarter 22/23 while the profit after tax stood at N816m from N204.11m marking about a 299.79 per cent increase.
However, for the six-month period ended September 2023, FMN recorded a loss of N8.521bn in contrast to a gain of N5.70bn in 2022. An increase in finance cost to N34.61bn from N22.32bn in 2022 partly led to the loss recorded. The company also blamed forex for the dip in its operating profit.
Its revenue for the six months stood at N964.65bn from N720.58bn
The board of FMN in explanatory notes signed by Company Secretary/Group Director, Legal Services, Joseph Umolu, said “FMN Plc has experienced continued strong revenue growth of 34 per cent (year-on-year) with the gross profit growth of 53 per cent ahead of revenue.
“The operating profit slightly dropped due to foreign exchange loss of N28.7bn in the quarter two leading to the Group loss before tax of N8.1bn. Management remains optimistic that with the current government monetary policies at stabilising the forex market, and management continues effort in sales and marketing activities geared towards boosting our top line while keeping costs under control, we expect to see improvement in our operations in the coming period.”
Commenting on the results, the Group Managing Director/Chief Executive Officer, said, “We are excited about the potential for Q2 23/24 and the foreseebale impact of this financial growth for the organisation. As we navigate through emerging marketing challenges, we will continue to work with all stakeholders in driving the Group’s vision and propagating a sustainable business.”
SOURCE: PUNCHNG
