Despite a double-digit increase in revenue in the first half of its 2023 fiscal year, Flour Mills of Nigeria Plc, a Nigeria-based agro-allied group led by Greek multimillionaire businessman John Coumantaros, saw a significant drop in profit amounting to N4.83 billion ($11 million) amid a challenging macroeconomic environment.
The group’s profit fell as it began integrating its newly acquired subsidiary, Honeywell Flour Mills, into its broad-based operations in a move to realize the anticipated synergies, with a special emphasis on restructuring its balance sheet to reduce foreign exchange exposure and ensure manufacturing stability.
Flour Mills’ profit in the first six months of its 2023 fiscal year fell by 45.86 percent, or N4.83 billion ($11 million), from N10.53 billion ($24 million) in the first half of 2022 to N5.7 billion ($13 million), according to figures contained in the group’s recently published financial result.
Earnings dropped due to an increase in the group’s finance costs despite a significant 38-percent increase in revenue above N720 billion ($1.64 billion), with revenue growth for the half-year period averaging 36 percent across all business segments due to a favorable mix and some exchange-related pricing.
With a market capitalization of N124 billion ($282 million), Flour Mills of Nigeria is the market leader in flour and flour-product marketing and production in Nigeria, as well as one of the country’s largest consumer goods companies listed on the Nigerian Exchange.
Through Excelsior Shipping Company Limited, Coumantaros, a Nigeria-based Greek businessman and chairman of Flour Mills Group, controls 63.3 percent of the agro-allied group.
If the group fails to deliver a financial result better than last year’s level, the multimillionaire businessman and consumer goods magnate, who received a dividend of N5.58 billion ($13.45 million) from his shareholding this year, may end up receiving lower dividend earnings this year.
