Flour Mills Nigeria Plc’s results for the year ended 31st March 2016 has shown that the group recorded 49 per cent in its profit before tax from N7.7billion to N11.5billion.
Also, the group profit after tax climbed to N14.4billion, representing an increase by 71.4 per cent, compared with the N8.4 billion realised in 2015. Furthermore, the group revenue grew by 11 per cent from its 2015 figures of N308billion to N342billion in the year under review.
However, the company posted revenue of N248billion, which represented a growth of eight per cent over the N230billion realised last year.
Commenting on the results, the Group Managing Director of Flour Mills, Mr. Paul Gbededo, noted that in spite of the strong economic headwinds and tough business environment, devaluation of the naira and unrest in the North-eastern region of the country, the Flour Mills Group had an inspiring year.
According to Gbededo, its cost of sales was impacted by higher cost of foreign currency due to foreign market deregulation resulting in closing blended exchange rate of N295 to $1 as against CBN rate of N197.50.
He attributed the improvement in revenue and profitability primarily to volume growth and efficiency gains, adding that benefits arising from the sale of investment in its associate company – UNICEM also helped to improve the bottom line.
“The good news is that management is determined to further restructure our operations, streamline our business operations to focus on core businesses and constantly monitor and manage our costs optimally to hedge against further economic challenges which might evolve.
“It is also noteworthy that management is resolute in ensuring that sustainable returns and dividends from the Group’s agro allied investments are properly harnessed by maximising local content in the Group’s products, bye- products and processes.
“Our confidence in the future prospect of our company is demonstrated by the fact that despite daunting economic challenges to our business, our directors are proposing to our shareholders at the forthcoming annual general meeting, the declaration of a total of N2.62 billion (2015- N5.5 billion) representing dividend payment of N1 (2015 – N2.10) per ordinary share of 50 kobo each.”