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Innovation, retail expansion push FMN’s revenue past N1.1 trillion

By Guardian Editor
01 February 2023   |   3:30 am
Continued focus on retail expansion and proactive pricing to cushion steep input costs, as well as improvement in its agro-allied business are some of the factors that aided Flour Mills of Nigeria Plc (FMN) to raise its revenue past the N trillion mark.

Continued focus on retail expansion and proactive pricing to cushion steep input costs, as well as improvement in its agro-allied business are some of the factors that aided Flour Mills of Nigeria Plc (FMN) to raise its revenue past the N trillion mark.

The firm, in its nine months report for the 2023 financial year, achieved over N1.114 trillion revenue for the first time, demonstrating sustained momentum across all business segments compared to previous year revenue of N825 billion.

FMN noted that its continuous product innovation and effective route-to-market strategies were largely responsible for the continued solid financial performance across the Group’s core business segments with the Honeywell integration well underway and performance in line with the integration plan.

Overall revenue grew by 35percent across all business segments, with Food, Agro-Allied and Sugar all growing between 34 per cent to 39 per cent respectively. Gross profit reached N103 billion in 9M’ 23, up 29 per cent compared to 9M’ 22 and 33percent quarter-on-quarter (QoQ). Operating profit grew by 28 per cent in 9M’ 23, with a 32 per cent growth quarter-on-quarter.

Commenting on the Q3 Financials, the Group Managing Director, Boye Olusanya, said: “The Q3 earnings trend is a clear demonstration of the Group’s commitment to carrying out its overall long-term strategy of maintaining growth and sustaining profitability by significantly investing in the development of local content through product innovation across our core value chains.

“Also, as is established by the significant increase in revenue and growth from the Agro-allied category of the Group’s touchpoints, we are committed to achieving economies of scale in food production via crop-specific value chain by increasing productivity and ultimately driving the nation’s attainment of food self-sufficiency”.

Similarly, the firm noted that total results were affected by the integration of Honeywell Flour Mills Plc (HFMP) integration, which has been successfully ongoing since the takeover on May 12, 2022.

As anticipated, the acquisition involved some initial integration costs and Honeywell posted a loss of N10.3 billion at the end of December 2022. However, Honeywell is on track to realize and exceed the anticipated benefits from the acquisition.

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