Table of Contents
Key Points
- Flour Mills of Nigeria’s Q1 revenue surged by 67.23% to $460.1 million, up from $279.3 million last year.
- The company reported a profit of $4.28 million, reversing a previous loss of $5.74 million from the previous year.
- Effective cost control and market positioning contributed to Flour Mills’ improved financial performance.
Flour Mills of Nigeria Plc, the agro-allied group based in Lagos and led by Greek billionaire John Coumantaros, posted a significant rebound in its financial performance for the first quarter of the 2024 fiscal year. The agro-allied group’s revenue surged by 67.23 percent to N763.2 billion ($460.1 million), up from N456.4 billion ($279.3 million) in the same period last year.
Despite the tough macroeconomic environment in Nigeria, characterized by currency devaluation and inflation, Flour Mills managed to turn around its financial position. It reported a profit of N6.98 billion ($4.28 million) for the quarter, a marked improvement from the N9.34 billion ($5.74 million) loss recorded in the first quarter of the previous fiscal year.
CEO praises resilient Q1 performance
The positive shift in its earnings is attributed to the company’s strategic cost management and stabilization of the foreign exchange market, which mitigated some financial pressures from the previous year. Flour Mills’ operational efficiency and strong market position played crucial roles in its impressive revenue growth.
Boye Olusanya, group managing director and CEO of Flour Mills, highlighted the company’s resilience in navigating economic challenges. “Our Q1 2024 results demonstrate Flour Mills’ ability to deliver solid performance despite significant headwinds. We’ve shown remarkable agility in navigating the challenging macroeconomic environment, including persistent inflation and exchange rate volatilities,” Olusanya said.
Flour Mills’ strong legacy
Flour Mills, a leader in Nigeria’s food and agro-allied industry, owes its esteemed position to the visionary leadership of its founder, the late George Coumantaros, and his son, John Coumantaros, who currently serves as chairman. Under their guidance, the company has established itself as a dominant force in the sector.
As the majority shareholder with a 63.34-percent stake in Flour Mills of Nigeria Plc through Excelsior Shipping Company, John Coumantaros ranks among the wealthiest investors on the Nigerian Exchange, underscoring the company’s financial strength and stability.
Flour Mills optimistic amid policy shift
Looking to the future, Flour Mills is poised for continued growth, driven by favorable government policies aimed at stabilizing the foreign exchange market. With a strategic focus on investments and operational excellence, the company is well-positioned to navigate the dynamic market landscape and sustain its growth trajectory.
