Flour Mills of Nigeria Plc, has announced its first quarter unaudited results for the period ended 30 June 2022 revealing 45.3% rise in revenue to N339.601 billion from N233.703 billion in 2021.
The result was achieved despite rising inflation that impacted significantly on the prices of goods and services. In addition to the increasing prices, the Russia-Ukraine war caused disruptions in the global food chains, which set off a chain reaction in the global economy, causing a spike in essential commodities such as wheat. Despite these, the company witnessed an increase in revenue, underlying the importance of food as a necessity.
The audited results which were released to the Nigerian Exchange Group (NGX) indicated that cost of sales increased by 47% to N306.352 billion from N208.004 billion achieved in 2021.
According to the company’s financial statement, the miller’s food segment contributed 63% growth of the revenue to N213.166 billion from N146.925 billion in 2021, while its Agro Allied segment followed with 45% of the revenue with N65.652 billion from N47.588 billion in 2021.
Profit after tax rose marginally by 0.89% to N5.495 billion in 2022 from N 5.446 billion in 2021.
Flour Mills of Nigeria Plc had posted a N28 billion profit for the year ended 31st of March 2022. This is following a consequent rise in the revenue of the company by 51%, from N772 billion to N1.16 trillion.
The report shows that the cost of sales increased with the revenue during the period by 59% to hit N1.1 trillion from N665 billion resulting in a gross profit of N108 billion, closing in on N106 billion in the previous year.
While the company saw a net operating loss of N135 million during the period, the amount is relatively mild compared to the N15 billion loss for the same purpose in the previous year. Also, selling and distribution expenses, as well as administrative expenses, amounted to N11 billion and N31 billion from a respective N12 billion and N29 billion. These influenced the operating profit to record a N66 billion in 2022 compared to the N52 billion in 2021.
Other financial highlights
- Profit after tax grew marginally by 0.92% to N7.328 billion in 2022 from N7.261 billion in 2021
- Selling and distribution expenses rose by 50.52% to N4.609 billion from N3.062 billion
- Operating profit grew by 32.75% to N15.285 billion from N11.514 billion
- Total comprehensive income grew by 6.72% to N5.812 billion N5.446 billion
- Finance costs rose by 79.12% to N8.150 billion from N4.550 billion in 2021
very good