Nigerian food giant majority owned by Greek businessman rakes in $1.5 billion

Feyisayo Ajayi -

Key Points:

  • Flour Mills saw revenue jump 49% year-over-year, but profit after tax plunged 88% due to surging costs.
  • Rising admin and finance costs squeezed profits despite growth across all business segments and higher exports.
  • The company maintains its market lead but cuts its dividend payout by 20% as profits fall.

Flour Mills of Nigeria Plc, a Lagos-based foods and agro-allied group led by Greek multimillionaire businessman John Coumantaros, reported a substantial revenue increase for fiscal 2024 (ended March 31). However, profits declined significantly.

Revenue soars: Domestic sales up, exports rise

According to the group’s financial results, revenue jumped 48.8 percent year-over-year to N2.3 trillion ($1.57 billion) during its 2024 fiscal year, from N1.54 trillion ($1.04 billion) in 2023. This strong performance was driven by growth across all segments, including food, agro-allied operations, sugar, and support services.

Domestic sales climbed to N2.23 trillion ($1.5 billion) in the reporting period, up from N1.51 trillion ($1.012 billion) in 2023. Export revenue also increased, reaching N62.5 billion ($43 million) compared to N27.2 billion ($18.2 million) a year earlier.

Profit slips on cost surge

Despite the positive sales figures, Flour Mills’ profit after tax dropped by 88 percent to N3.54 billion ($2.39 million), down from N29.5 billion ($20 million) in 2023. This decline was attributed to a surge in administrative expenses, which increased by 16.8 percent to N47.33 billion ($31.87 million), and finance costs, which soared by 139.44 percent to N208.8 2 billion ($140.67 million).

While profits took a hit, the group’s shareholder funds saw a modest increase of 4 percent, rising from N225.22 billion ($151.50 million) to N236.48 billion ($156.48 million). It also recorded substantial growth in total assets, expanding by 36 percent from N1.1 trillion ($738.9 million) to N1.49 trillion ($1.01 billion) in 2024.

Flour Mills cuts dividend

Flour Mills, a key player in Nigeria’s flour market, solidifies its position with a market capitalization exceeding $100 million on the Nigerian Exchange. Despite a tough fiscal year, the group plans to reward shareholders with a proposed dividend of N7.38 billion ($4.90 million), marking a 20 percent drop from last year’s N9.23 billion ($6.13 million) dividend.

Established in 1960 by George Coumantaros and now led by his son, John Coumantaros, Flour Mills of Nigeria continues to be a major player in Nigeria’s food and agro-allied sectors. Despite a significant decline in its earnings due to rising expenses, the company remains focused on its goal of feeding Nigeria and creating value for stakeholders.