Flour Mills of Nigeria Plc, a leading integrated food business and agro-allied group, has announced its unaudited half year(H1) results ended June 30, 2019, showing a growth of 16 per cent in profit after tax (PAT) amid the challenging operating environment.
Specifically, the company recorded a profit before tax (PBT) of N8.6 billion, compared to N8.3 billion in H1 of 2018, showing an increase of four per cent.
But PAT grew faster by 16 per cent from N5.1 billion in 2018 to N5.9 billion in 2019. The improved bottom-line was achieved partly due to a decline of 21 per cent in financing cost, which fell to N8.8 billion compared with N11.2 billion in 2018.
This indicates that the company’s deleveraging strategy and lowered interest rates continue to achieve desired results.
Commenting on the results, the Group Managing Director, Flour Mills of Nigeria Plc, Paul Gbededo said: “We have posted an impressive result for the first half of the year with PAT increasing by 16 per cent to N5.9 billion when compared to last year. I am confident that we are on track to achieve our growth targets for the year as we continue to improve operational efficiency, reduce our finance cost and ultimately grow the wealth of our shareholders by increasing earnings per share.”
The company explained that despite the challenging operating environment and continuing pressures on the profitability of most companies in the fast-moving consumer goods sector, its results reflect the management’s strategy and commitment to growth and value creation.
“Although the revenue from some of our food businesses was adversely impacted by lower volumes, Pasta and Noodles recorded positive growth in base products, and the sugar business continued to show remarkable growth in line with projections. The Agro-Allied business also continues to show improvements especially in the Animal feeds and Fertilizer segments,” the company added.