Flour Mills of Nigeria Plc. today released its unaudited financial statements for the nine months ended 31st December 2018.
Flour Mills Group (The Group):
- Volume growth accelerated in Q3 driving the overall revenue growth for the quarter. Group revenue was N401 billion, for the nine months ended 31st December 2018, a decline of 6% when compared to N428 billion, of the same period last year, driven by the first 6 months, with Q3 returning to top line growth.
- Finance cost, stood at N16.5 billion, a significant drop of 34% when compared to N25.2 billion of the same period last year.
- The reduction is due to the settlement of overdraft facilities and replacement of high interest yielding loans with more favorable loans.
- The Group has announced its intent to carve out its fertilizer business from Flour Mills of Nigeria Plc and registered same as an independent company to hold its Agro-allied businesses. This is expected to position this business segment for further growth and ensure optimal financial structures for the related businesses.
The holding company will be fully owned by Flour Mills of Nigeria Plc. The arrangement is, however, subject to the approval of the Securities and Exchange Commission.
Flour Mills of Nigeria Plc (The Company):
- The Company, Flour Mills of Nigeria Plc recorded revenue of N297 billion for nine months ended 31st December 2018, representing a marginal decline of 2%, when compared to N304 billion recorded in the same period last year.
- The 2% drop in revenue is disappointedly related to the logistic upheavals posed by the traffic challenges in Apapa.
- Gross profit declined by (-18%) at N34 billion, compared to N41 billion (Q3 2017)
- Profit Before Tax declined by (-25%) at N13.56 billion, compared to N18.20 billion (Q3 2017)
Commenting on the result, Paul Gbededo, the Group Managing Director said:
“The results are largely a reflection of our focus on driving volume growth while improving operational efficiency and ramping up strategic marketing and promotional activities to win over new market segments in our food business. Despite the devastating effect of the traffic congestions in Apapa on our operations, we are quite positive that we will see improvements across major business segments before the close of the financial year, as we continue to focus on delivering on our promise of quality to our consumers.”
Nigeria needs urgent economic diversification – AfDB
The AfDB said that the diversification of the Nigerian economy had become important for it to respond favourably to the emerging challenges of the 21st century.
The African Development Bank has stated that Nigeria, Africa’s largest economy, needs urgent economic diversification to move the country from a single income source (oil and minerals) towards multiple income sources.
This was disclosed by Prof. Oyelaran-Oyeyinka Oyebanji, Senior Special Adviser on Industrialisation at African Development Bank (AfDB), at the 22nd Founder’s Day Lecture of the Igbinedion University, the first private university in Edo state, on Monday.
What the AfDB said about diversification
“In pursuit of long-term recovery and sustainable development, Nigeria needs urgent economic diversification. Nothing is more poignantly demonstrative of the danger of over-reliance on a single or narrow range of commodities than the recent crash in oil price we saw in 2020 due to the COVID-19.
Economic diversification entails a shift away from a single income source (oil and minerals) toward multiple income sources from an increasing spectrum of sectors, products and markets,” he said.
In case you missed it
The International Monetary Fund (IMF) stated earlier this year that economic diversification was important to Nigeria and critical for her economic recovery.
They said the limited gains from inward-oriented policies in terms of creating jobs and improving living standards suggested that Nigeria needed to have a change of strategy. It was pointed out that in order to accommodate a growing number of young people entering the labour market, Nigeria would need to create at least 5 million new jobs each year over the next decade.
Ghana-Nigerian traders dispute: FG to send delegation to Ghana
The delegation will be led by the Minister of Trade, Niyi Adebayo, and comprised of other private stakeholders.
The Nigerian Government will send a delegation led by the Minister of Trade, Niyi Adebayo, to Ghana to end the crisis between Nigerian traders in Ghana and local authorities—an issue that started last year before the Ghanaian Presidential elections.
The delegation was ordered by the Presidency as disclosed in a statement by the trade ministry on Monday evening.
The statement revealed that the delegation would be comprised of private stakeholders also who would be sent to dialogue with Ghanaian trade authorities to find a solution to the crisis.
The meeting between both parties will be held between May 31 and June 1, 2021.
What you should know
Recall Nairametrics reported last year that Ghana’s Foreign Minister, Shirley Ayorkor Botchwey, said that Nigeria’s border closure in 2019 hurt Ghanaians and nearly bankrupted many Ghanaian export businesses after their goods were stuck at the Seme Border for months, reacting to the shutdown of Nigerian-owned shops by Ghanaian authorities last year.
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