Flour Mills Nigeria, announced its unaudited 2020/21 half-year financial results today, showing continued growth with a Profit after Tax of N9.9 billion for the six months ended 30th September 2020.
This information is contained in the press release by the Group, which is in line with Flour Mills’ Half-year 2020/21 financial statement.
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What you should know
- Flour Mills’ revenue was N355.1 billion, compared to N270,8 billion in H1 2019/20.
- The Group’s profit before tax was N14.6 billion, compared to N8.6 billion in H1 2019/20. The increase in profit before tax was largely driven by the agro-allied segment, which generated a profit of N6.3 billion compared to a loss the previous year.
- The agro-allied segment saw very strong improvement in the edible oils and fats, protein, and fertilizer businesses, following the investments over the last few years.
- The Group’s profit after tax was N9.9 billion, compared to N5.9 billion in H1 2019/20.
- FMN continued to show sustained growth in key segments driven by the closure of the Nigerian border since August 2019.
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Operational review
Despite prevailing economic headwinds, the Group continued to show sustained growth in key segments driven by the border closure since August 2019.
As the FMN key segment continues to capitalize on this development due to the strategic placement of the Group’s business in the industry.
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This development led to a strong performance in edible oils and proteins supported by agro-inputs (fertilizer) and agro-distribution and aggregation structures.
In line with FMN’s growth strategy, the edible oils and fats value chain saw a significant year-on-year increase of 32% in volume, turning in a profit when compared to the loss in H1 2019/20.
However, volumes for the protein value chain also increased by 18% year-on-year, while the starch value chain was up by 31% year-on-year.
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What they are saying
Commenting on the result, Paul Gbededo, the Group Managing Director /CEO, stated; “With this result, our business has once again shown resilience, by following the path of sustainable growth despite the prevailing challenges in both the local and global economy.”
He further assured that “in line with our vision to continue to grow value for our investors, Management will for the remaining part of the financial year continue to concentrate on improving operational effectiveness through accelerated strategies for Group-wide cost optimization, which will ensure sustainability in the current market climate, while we continue to invest in growing the business further.”