Flour Mills approves N8.8 billion dividend for shareholders in FY 2022

Flour Mills of Nigeria (FMN) Plc has proposed a total dividend of N8.8 billion for the 2022 financial year as against N6.8 billion recorded in 2021.

The dividend represents N2.15 per share, a 30% growth over last year (compared to an 18% growth in FY’21 and a 17% growth in FY’20).

They made the disclosure at analyst/investor call conference to review its full year 2022 results.

What they are saying

According to the company, “Flour Mills of Nigeria Plc in FY’22 demonstrated solid performance across Food, Agro-Allied and Support Segments delivering topline growth of 57% in Q4 and 51% in FY22, behind strong volume growth and favourable mix.

• “Significant increase in international food prices and input costs impact gross margin. Wheat and sugar costs increase by over 30% and 20% respectively in addition to higher energy and local distribution costs whilst sustaining progress on ESG agenda
• “Persistent operating performance in the Food segment; impressive improvement in the Agro-Allied and Support segments following continuous expansion, product innovation and enhanced capacity resulted in an impressive Profit Before Tax (FY’22 Vs FY’21: N41bn Vs 37bn) – up by 11%.
• “Agro-Allied business segment contributed 47% (N19bn) to the Group’s Profit Before Tax following increase in local demand and increased export operations 5 Flour Mills of Nigeria Plc obtained approval and has acquired Honeywell Flour Mills Plc to reinforce its position as the leader in flour, semolina and pasta market”.

The group noted that its oil and fats business grew revenue by 58%, while pretax profit margin expanded by 141% y-o-y driven by improved export operations (revenue up 26%), implementation of cost savings program and installation of a seed cleaning plant to reduce frequent machine breakdown in production.

Animal feeds business recorded 49% growth largely due to product innovation and investments in logistics infrastructure while the fertilizer business expanded with a new blending plant in Kaduna state, contributing 89% and 21% growth in revenue and volume respectively.

Key highlights

• Total proposed dividend of N8.8bn vs N6.8bn last year, subject to AGM ratification.
• Proposed dividend: N2.15 per share; representing a 30% growth vs LY (compared to an 18% growth in FY’21 and a 17% growth in FY’20).
• Profit before tax stood at N41 billion in 2022 from N37 billion in 2021.
• Profit for the year was N28 billion in 2022 from N26 billion in 2021.
• Total assets hit N667 billion in 2022 from N544 billion in 2021.