Lagos-based Greek businessman gains $14.4 million from Flour Mills stake

Feyisayo Ajayi -

Key Points:

  • John Coumantaros’ stake in Flour Mills rose $14.4 million in a month, reversing earlier losses due to a recent share price surge.
  • Shares of the Nigerian food giant have jumped over 24%, boosting the company’s market cap above $105 million.
  • Despite the stock rise, Flour Mills investors face a 31.7% loss due to the weakening naira, highlighting currency risk.

Greek multimillionaire businessman John Coumantaros, the chairman of Flour Mills of Nigeria Plc (Flour Mills), has witnessed a significant rebound in the market value of his stake, driven by a surge in the share price of the food and agro-allied group on the Nigerian Exchange (NGX).

According to data tracked by Billionaires.Africa, Coumantaros’ stake has increased by N21.38 billion ($14.42 million) over the past 27 days. This follows the $6.9 million loss he recorded between April 12 and 24, when his stake declined from N87.74 billion ($70.74 million) to N79.18 billion ($63.83 million).

Flour Mills shares surge by over 24 percent

Flour Mills of Nigeria, established in 1960 by the late George Coumantaros and led by his son, John Coumantaros, has firmly established itself as a significant player in the Nigerian food and agro-allied industries. Building on this legacy, the business has grown considerably over the years.

Its shares on the Nigerian Exchange (NGX) have increased by 24.59 percent, climbing from N30.5 ($0.0206) on April 30 to N38 ($0.0256) at the time of drafting this report. This increase has boosted the market capitalization of Flour Mills to over $105 million, delivering notable returns to shareholders.

Coumantaros’ Flour Mills stake gains $13.21 million in under a month

John Coumantaros, chairman of Flour Mills of Nigeria Plc, a leading food and agro-allied conglomerate, holds a 63.34 percent stake in the company. The stake has grown by N21.38 billion ($14.42 million) over the past 27 days, rising from N86.93 billion ($58.66 million) to N108.31 billion ($66.9673.08 million).

The increase in the market value of Coumantaros’ stake reaffirms his position as a leading investor on the Nigerian Exchange and highlights his significant influence in the country’s business sector.

Your Life and Your Money: Share price up, but devaluation erodes gains

Flour Mills has seen a remarkable 14.8 percent surge in its share price in naira terms since the beginning of the year. However, this apparent success is overshadowed by the Nigerian naira’s devaluation against the U.S. dollar, which has led to an overall decrease of 31.7 percent year-to-date.

This significant currency depreciation translates into tangible losses for individual investors. For instance, a $100,000 investment in Flour Mills at the start of the year would now only be valued at $68,296, representing a substantial loss of $31,704 due to the currency devaluation’s impact on the investment’s worth.