Flourmills’ shareholders applaud expansion drive, dividend

Shareholders of Flourmills of Nigeria Plc (FMN) have commended the company’s strategic diversification into agro-allied business, even as they approve the firm’s N1 dividend due to every investor of the company for the 2015 financial year.

The shareholders, who spoke during the yearly general meeting of the company, held in Lagos at the weekend, explained that the firm is already reaping the benefits of its expansion into agriculture with the 11 per cent rise in its turnover during the period under review.

Specifically, the President of Ibadan Zone Shareholders Association, Sola Aboderin, explained that the management of the company is indeed aligned with the Federal government policy on backward integration.

He pointed out that some of the seedlings cultivated by the company are used by food and beverage company, noting that this has helped immensely to reduce their over dependence on foreign products.

“The company has done well. Turnover increased by 11 per cent. It is good that the company is diversifying into agriculture to support backward integration. All their raw materials are sourced locally. They should continue to improve in this area in order to cultivate for exportation.”

The President, Nigerian Shareholders Solidarity Association, Timothy Adeshinwo, lauded the company for rewarding shareholders with dividend payout despite its expansion exercise.

“The company is expanding its agro-allied business, growing cassava, palm oil, sorghum and others which means that importing these seedlings will not be necessary. This would boost the firms bottom-line and increase shareholders value.”

Reviewing its performance, the chairman of the company, John Coumantaros, assured shareholders that the company would continue to strengthen its strategic investment across major crop value chain, ranging from vegetable oil, animal feeds, cassava flour and raw sugar.

“All these efforts are underpinned by the ambitious plans we have set in motion to establish a pan-Nigeria network of aggregation and distribution centres under the newly formed company, Golden Agri-Inputs Limited (GAIL).

“Serving the same constituents as our fertilizer business, this platform will further enhance our positioning as ‘farmer’s friend’ in Nigeria and engender a holistic and aligned approach for all stakeholders in the sector, we believe.”

He added; “Our well-defined backward integration program in cassava, sugar, palm oil, soybean, maize and rice are now all producing local raw materials to supplement our other local procurement and aggregation efforts, which will further be enhanced by the GAIL initiative.”

The explained that the group posted 11 per cent rise in revenue from N308 billion in 2014 to N342 billion while profit before tax increased from N7.7 billion to N11.5 billion, representing an increase of 49 per cent. Profit after tax also stood at N14.4 billion, 71.4 per cent increase over N8.4 per cent achieved in 2014.