Flour Mills of Nigeria, led by Greek businessman John Coumantaros, reports strong revenue growth in its unaudited financial statement for the first nine months of its 2023 fiscal year, reaching over a trillion Naira ($2.41 billion) for the first time in the company’s history.
With revenue of N1.114 trillion ($2.41 billion) – surpassing the trillion Naira mark for the first time since its establishment – the Coumantaros-led group demonstrated sustained growth across all its business segments compared to the previous year, which posted a revenue of N825 billion ($1.79 billion)
The rise in the group’s revenue is a testament to its unwavering dedication to executing its long-term strategy of ensuring growth and ensuring profitability through substantial investments in the cultivation of local content through innovative product development across our core value chains.
This remarkable performance can be attributed to the group’s broad business segments, which delivered exceptional results during the first nine months of the 2023 fiscal period.
Despite a remarkable double-digit surge in revenue due to the impressive performance of its food, agro-allied and sugar segments, the group’s profit for the first nine months of 2023 experienced a significant 41.2 -ercent decline, dropping from N17.04 billion ($37 million) in 2022 to N10.02 billion ($21.7 million) in 2023.
The decrease in profits can be attributed to the escalated finance costs during the period, which rose from N16.1 billion ($35 million) to N37.5 billion ($81.4 million).
Furthermore, the group’s earnings were impacted by the integration process of Honeywell Flour Mills Plc, which was completed on May 12, 2022.
As expected, the acquisition of Honeywell Flour Mills resulted in some upfront integration expenses, leading to a reported loss of N10.3 billion ($22.3 million) by the close of December 2022. Despite this setback, remains the group remains steadfast in its pursuit of realizing the full potential of the acquisition and is confident in surpassing the projected benefits in the near future.
Flour Mills, a renowned food and agro-allied group in Nigeria, has established itself as a major player in the industry since its establishment in 1960. Under the leadership of the late George Coumantaros and his son, John Coumantaros, the business has seen substantial growth.
Currently, John Coumantaros holds a 63.34-percent stake in the company as its chairman, and the market value of his stake has skyrocketed to a staggering $170 million.
