The Nigerian Stock Exchange (NSE) thursday listed the N12,499,600,000 3-years 10 per cent Series 3 (tranche A) Fixed Rate Senior Unsecured Bond due 2023 and the N7,500,400,000 5-year 11.10 per cent Series 3 (tranche B) Fixed Rate Senior Unsecured Bond due 2025 issued Flour Mills of Nigeria (FMN) Plc. The flour milling firm had issued the bonds under its N70 billion Bond Issuance Programme.
According to the NSE, the bonds were 100 per cent subscribed and the listing would afford investors the opportunity to trade the security. The firm intends to channel the capital raised through the offering into refinancing its short-term debt obligation and ramp up the efficiency of its balance sheet. The idea is to maximise the wealth of its shareholders.
The food company recently posted improved financial results for the nine months ended December 31, 2019.
FMN recorded a revenue of N423.48 billion for the nine months in 2019, showing an increase of six per cent compared with N400.64 billion in the corresponding period of 2018. Profit before tax (PBT) rose marginally from N11.278 billion to N12.292 billion in 2019, while profit after tax (PAT) increased from N7.896 billion to N8.161 billion.
Commenting on the result, the Group Managing Director, FMN, Paul Gbededo, said:
“I am pleased with our Q3 results. We have recorded impressive growth in our volumes, and profit before tax increased by 23 per cent. Going into the final quarter of the financial year, continued growth is envisaged as we continue to implement targeted strategies, invest in our branding and distribution network and reduce operational costs that will bring even more value in the long run for shareholders.”