FMN posts N248b revenue, N10.4b profit in 2015

Mr. Paul Gbededo, Group Managing Director, Flour Mills of Nigeria Plc, FMN, (Right); Governor Sani Bello, Niger State Governor; Mr. Godwin Emefiele, Governor of Central Bank of Nigeria (CBN) and Mr. John Coumantaros, Chairman, FMN Group at the inspection of the multi-billion naira new Sugar Mill at Sunti Golden Sugar Estate in Mokwa LGA, Niger State at the weekend

Flourmill of Nigeria (FMN) Plc has posted a revenue of N248 billion in its 2015 operations, against N230 billion achieved in the corresponding period in 2014.

Specifically, the company’s audited result for the year ended December 2015, showed eight per cent rise in revenue from N230 billion posted in 2014 to N248 billion during the year under review.

Similarly, its profit before tax stood grew by 589 per cent to N6.2 billion, from N0.9 billion posted in the previous year while profit after tax increased from N2.4 billion to N10.4 billion, represent an increase of 334 per cent.

Based on the improved performance, the directors of the company are recommending a dividend of N2.62 billion, culminating to N1.00 per share due to shareholder of the company for the 2015 financial year.

The Group Managing Director opf the company, Paul Gbededo attributed the performance in revenue and profitability to volume growth and efficiency gain, adding that the sale of its investment in UNICEM also boosted its bottom line.

He added that cost of sales was impacted by high cost of foreign currency due to deregulation, which, according to the firm, resulted to a closing exchange rate of N295 to $1 against CBN rate of N197.50.

Gbededo explained that the management was committed to restructure and streamline its operations to enable them to focus on core business.

This, according to the firm, would enable it manage its cost optimally and hedge against further economic challenges.

During the year under review, he noted that the firm increased its investment in agro allied business where it presently grows and processed maize,soya beans, soghum, sugar cane, palm oil, rice, among others and supply of fertiliser and agri sacks to the Nigerian market.

“FMN continuous to be one of the major promoters of agricultural transformation agenda of federal government with its on going agro allied investments aimed at creating jobs and stimulating economic activities in urban and rural areas.

“FMN goal is to be involved at all stages of the food value where a profitable and sustainable agro allied platform of cultivating and processing locally produced raw materials will ensure the growth and success of our food business,” he added.