The Nation|| The management of Flour Mills of Nigeria has assured that the company would consolidate its performance in the last quarter with a view to ensuring better returns to shareholders.
In a statement, the management of Flour Mills said it expects contributions to the group’s bottom line from a variety of investments that will come on stream.
“The company’s outlook for the last quarter of the financial year remains positive. Management will focus attention on its innovative routes to the market and distribution network to sustain the growth momentum and deliver good value to stakeholders,” Flour Mills assured.
According to the company, in spite of the challenging economic and tough business environment, it had posted an impressive result for the nine-month period ended December 31, 2013 as turnover rose by 28 per cent from N139.2 billion to N178.9 billion.
However, group’s earnings before tax for the nine months declined from N8.2 billion to N5.9 billion.
The company attributed the decline in bottom-line to operational ramping up and strong competition faced by its subsidiary- Golden Sugar Company Limited, which launched its products during the first quarter of the financial year.
It noted that increased production capacity and enhanced efficiency following completion of the ‘West Mills’-the company’s latest milling facility, contributed to the improved performance.
The statement stated that the company derived some benefits of synergy arising from internal restructuring and completion of merger with two former subsidiary companies, Niger Mills Company Limited and Nigerian Bag Manufacturing Company Plc.