The shareholding of Greek businessman John Coumantaros in Flour Mills of Nigeria Plc has recorded a $15.6-million market-value increase since the start of the year.
The gains can be attributed to the company’s increased share price on the Nigeria Stock Exchange (NGX).
Flour Mills of Nigeria is Nigeria’s market leader in flour and flour product marketing and production.
The company has grown into a leading player in the agro-allied sector and across key value chains in the agricultural industry through its diversified operations in food, agro-allied, sugar and logistics support.
Flour Mills of Nigeria is Nigeria’s fifth-largest consumer goods company listed on the NSX, with a market capitalization of $283 million (N117 billion).
Coumanataros is the company’s majority shareholder. His indirect stake in the leading flour miller through Excelsior Shipping Company Ltd. accounts for 63 percent of the company’s total issued shares.
As of December 2020, Flour Mills of Nigeria had an asset base of $1.2 billion (N493 billion), with total liabilities of $794 million (N327.5 billion).
This puts the shareholders’ total equity value at $402 million (N165.7 billion).
The company has recently opened three new regional distribution centers in Nigeria in Kano, Magboro and Abuja, targeting the new fast-growing product categories, including fats, sugar and garri.
Flour Mills of Nigeria’s long-run fundamental strength and its growth potential are the primary reasons why investors continue to acquire stakes in the leading miller.
Investors remain bullish on the company, as the miller’s share price has shot up by 10 percent so far this year. Its shares rose from $0.06 (N26.00) on Jan. 4 to $0.07 (N28.50) at the opening of the market today.
This accounts for the increase in value of Coumanataros’ stake from $162.7 million (N67 billion) to $178 million (N74 billion) during the same period.
This translates to a gain of $15.6 million (N6.5 billion) for the Greek businessman over 158 days.
Flour Mills of Nigeira
Flour Mills of Nigeria was founded in 1960 by Coumantaros’ father George Stravos Coumantaros, who died in 2016.
Coumantaros served as the company’s chairman and CEO from 2014 until last December, when he handed over the reins to Omoboye Olusanya.
The company recently announced plans to boost its sugar unit’s production by investing at least $300 million to develop a new plant and a 15,000-hectare sugarcane plantation.
Located in Nasarawa State’s Umaisha Development Area, the plantation could launch before the year’s end.
This is expected to lift the company’s output by 150 percent. It would also increase the size of its cultivated land from 10,000 to 25,000 hectares.