FMN recommits to backward integration, innovation

In efforts to further restructure operations and streamline its activities, Flour Mills of Nigeria (FMN) Plc has said it would continue to invest in innovation and develop new strategies to make its market visible and available to its consumers.

Besides, the company said despite the daunting challenges posed by the macro-economic and business environment, it posted revenue of N375billion for the year ended March 31, 2017, a growth of 51 per cent over the N248billion in 2016. Its profit before tax was N11billion, which is 77 per cent over N6.2billion posted last year.

In line with returns on investment, the shareholders also approved the dividend of N1 per ordinary share of 50 kobo.

The Chairman, FMN, John Coumantaros, disclosed this in his address on Wednesday, at the 57th yearly general meeting held in Lagos.

Coumantaros said Four Mills is constantly monitoring and managing its cost optimally, improving and re-engineering its existing product range, while focusing on innovation and the development of new strategies for the market to make its products more visible and available at points of sale.

He said in its continued efforts to support the Federal Government’s backward integration policy, the company is determined to ensure that its agro-allied strategies provide sustainable returns on capital invested by maximising local content in all its group products.

According to him, the good performance in the period under review was attributable to better price management, and improved cost control.

However, Profit after tax fell to N9.8billion in March, against N10.4billion same period last year, which Coumantaros attributed to the costs of sales being impacted by higher cost of foreign currency due to naira devaluation.

He said Four Mills was able to offset the impact of the foregoing on its bottom-line through commensurate increases in the selling prices of its products as well as through cost reduction.

Meanwhile, company revenue appreciated by 25 per cent in its first quarter (Q1) of 2017 to N149billion from N119billion posted in the corresponding period of 2016.

For the three months ended June 30, 2017, the food and agro-allied products group, said its profit before tax was N6billion, compared to N5.8billion posted in Q1 2016, while its profit after tax stood at N4.5billion, as against N4billion in Q1 2016.

The company, Flour Mills of Nigeria Plc, recorded a revenue of N105billion, compared to N90billion recorded in Q1 2016, thus recording a continuous top-line growth of 25 per cent from volume and product mix.

During Q1 2017, FMN said it continued to make inroads into the agro-allied sector, by increasing its already substantial investments in the sector with the commissioning of an ultra-modern Sorghum Cereal Mill in Kano.

It added, “The Mill, which is part of a strategic investment drive in Kano, was built at a cost of about N2billion; it has a capacity of 100,000 metric tonnes per annum, and will help advance the Group’s drive towards establishing an ambitious Pan-Nigerian network of grains aggregation and distribution centres.

“Further investments advances were also recorded during this quarter with the increase in shareholding of ROM Oil Mills Limited in Ibadan, from 90 per cent to 95 per cent. This investment is expected to improve the already existing synergy in the Group, which relies on the refined oils, and by-products as key inputs in Flour Mills’ animal feeds, and associated products