Food and agro-allied, Flour Mills of Nigeria Plc, grew its revenue by 32 per cent to N1.5tn for the final year 2022/2023, from N1.163tn recorded in the same period ended March 2022.
In a press statement issued by the company on its performance in the period under review, Flour Mills said that its results showed its unwavering market leadership.
Part of the statement read, “FMN’s consistent commitment to operational excellence paid off, as indicated by a 64 per cent increase in gross profit, which reached N177.1bn. Despite substantial hurdles such as rising international food prices, rising input costs, and currency depreciation, FMN’s adaptable approach enabled it to prosper. Notably, the agro-allied section experienced remarkable growth, with revenue and profit before tax increasing by 51per cent and 58 per cent, respectively, in the fertilizer industry.
“The animal feeds and oil & fats businesses grew by 14 per cent and 38 per cent, respectively, thanks to strategic expansion, collaborations, and cost savings. FMN’s overall impact was strengthened by the sugar segment’s successful return to profitability, which was marked by a 34 per cent revenue increase.”
It was also highlighted that Honeywell, which FMN acquired in 2022 came out of the integration phase and delivered a solid profit in the fourth quarter.
FMN’s strong focus on operational efficiency, supply chain optimisation, and cost management also boosted its performance.
Commenting on the FY 2022/2023 results of the company, the Group’s Managing Director/Chief Executive Officer, Boye Olusanya, said, “FY 22/23 has been a year of agile business strategy implementation.
“Our ability to proactively manage both existing and emerging environmental challenges while progressively driving significant development across all our touch points is a testament to the Group’s commitment towards the actualisation of self-sufficiency in the country and across the continent. Market impediments such as rising international food prices, input cost escalations, and currency devaluation, were effectively managed, thus the Group’s ability to achieve strong financial performance in FY22/23.
“As we continue to act as a source of livelihood for millions of Nigerian families, we would remain committed to significantly investing across our value chain to reduce the nation’s dependency on imported raw materials and externally generated resources.”
On 12 May 2022, FMN acquired 77.75 per cent of the voting rights of Honeywell Flour Mills Plc, it stated.
The company said the transaction was entered into as part of “FMN Group’s global growth strategy, to create a stronger and more resilient national champion for Nigeria and further enhance food security. The transaction combined the strategic talents that are unique to each company, enhanced customer’s access to a wider range of innovative products and enabled FMN to expand its group operations.”
The company was incorporated in Nigeria on 29 September 1960 as a private limited liability company and converted to a public liability company in November 1978. A company registered in Liberia, Excelsior Shipping Company Limited, is the ultimate holding company with 2,597,314,890 units of shares held representing 63 per cent stake.
