In spite of the challenging economic and tough business environment, Flour Mills of Nigeria Plc (FMN) posted an impressive result for the nine months ended 31st December, 2013. The Company’s Revenue rose from N139.2 billion to N178.9 billion a growth of 28%, thanks to the volume growth in its core food business. Earning for the period after tax was N8.6 billion compared with N6.9 billion recorded during the equivalent period of 2012/13 financial year, a growth of 22%.
Increased production capacity and enhanced efficiency following completion of the ‘West Mills’ the Company’s latest milling facility coupled with a small decline in overheads contributed to the improved performance.
Additionally, 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.
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.
However, Group’s Earnings Before Tax for the nine months under review declined from N8.2 billion to N5.9 billion. This was attributable to operational ramping up and strong competition faced by Golden Sugar Company Limited, FMN’s subsidiary which launched its products during the first quarter of the financial year.
Management expects contributions to the Group’s bottom line from a variety of investments that will come on stream.