Flour Mills Nigeria Plc (FMN), a leader in food and agro-allied products in Nigeria, has announced improved financial performance for the half year ended September 30, 2017.

The company grew its revenue by 17 per cent from N255.30 billion in 2016 to N298.44 billion in 2017. It reduced its administrative and distribution expenses from N2.936 billion to N2.766 billion while it posted a net operating gain of N5.076 billion, compared with a loss of N8.082 billion in the corresponding period of 2016.s

Finance costs increased from N10.925 billion to N16.267 billion due to high interest rates.

FMN Plc ended the half year with a profit before tax of N13.38 billion, up from N8.80 billion in 2016, just as profit after tax improved from N6.46 billion in 2016 to N9.36 billion in 2017.

Commenting on the results, the Group Managing Director of the company, Mr. Paul Gbededo, said:

“Our half year results show continued growth through most segments of our businesses, especially in the food business, delivering strong top and bottom line financials in line with our objectives. The Group recorded growth from volume and product mix. This growth was despite what continued to be a challenging business environment. Overall, the business shows an impressive performance in the first half of the year. We are positive that we are on track to meet our growth targets for the remaining part of 2017/18 financial year.”

The food business value chain was responsible for an increase of N40 billion of the group’s turnover and the Chief Finance Officer (CFO) of FMN, Mr. Jacques Vauthier, has said that the management of the company was confident that this sector will record even stronger performance as the year progresses.

“To this end, we are enhancing our marketing activities to push the brand’s presence into newer outlets while strengthening present market share,” he said.

The Head, Corporate Business Development, Mr. Sadiq Usman, said in the agro-allied division, the group’s focus will remain on developing competences and improving execution capacity to backwardly integrate its core value chains, Sugar sweeteners, edible oils, feeds proteins and Cassava starches.

“The Group will leverage its significant resources and continue to build the capacity of local farmers and farming groups, who are an integral part of our strategy to develop sustainable, locally-focused supply chains,” Usman said.

As part of a strategic measure to consolidate operations, create value for shareholders and enhance administrative and operating efficiencies, the company in Q2 2017, announced the completion of a merger and absorption of Golden Penny Rice Limited, a wholly owned subsidiary, into FMN Plc.

According to the company, it is expected that the restructuring will meaningfully improve the synergies of the Group, reduce costs and improve the competitiveness of the company’s products, with the aim of advancing the profitability of the group.