Flour Mills of Nigeria (FMN) Plc has recorded a growth of 17 per cent in profit after tax (PAT) for the first quarter (Q1) ended June 30, 2020, raising investors’ hope for another good harvest at the end of year.
This is just as the company disclosed plan to raise funds through bond sale within the next two months, as part of its N70 billion ($184 million) programme to refinance its existing debt.
Details of the results showed gross earnings of N154.6 billion, compared with 15 per cent from N134.7 billion in the corresponding period of 2019. Profit before tax rose 16 per cent from N5.5 billion to N6.4 billion, while PAT grew by 17 per cent from N4.2 billion to N4.9 billion.
The result for the first quarter reveals a remarkable performance as the Group starts the year strong and builds on the growth trends recorded in the Q42019/20 financial year.
Commenting on the performance, the Group Managing Director, FMN Plc, Paul Gbededo, said: “The year 2020/21 is unique in many respects, as the terrible outbreak of COVID-19 continues to affect the world in unprecedented ways. Recognising how important our business model is to the food value chain in Nigeria, we are honoured to have been able to take an active role in the fight against this virus, by ensuring our operations remained unhindered to produce food for Nigerians at such a trying time.”
“While the first quarter of the financial year is perhaps one of the most complex periods facing businesses in Nigeria and across the globe, I am happy that our business has continued to explore newer opportunities to create value and wealth for Shareholders.”
According to him, the earnings and PAT figures both show impressive growth following strategy and expected projections.
“As we look into the future, we are positive that despite unprecedented prevailing uncertainties for businesses we will remain focused on increasing operational efficiency with accelerated plans for cost optimisations across the Group to ensure profitability in the new operating environment during and post COVID-19,” he added.
He said in line with strategy, the business remained resilient and continued to deliver value for shareholders while focusing on organic growth across all segments with continuous focus on our Agro-allied division and local value add with consumer-centric programs.
The company said its Agro-allied business recorded solid improvements as past investments and increased focus on local inputs through both in-grower and out-grower programmes yield desired results.