Despite a double-digit increase in revenue, Flour Mills of Nigeria Plc, a Nigerian agro-allied company led by Greek multimillionaire John Coumantaros, reported a single-digit increase in earnings at the end of its 2022 fiscal year, which ended on March 31.
According to its recently published financial report, profit after tax increased by nine percent in the period under review, from N25.72 billion ($62 million) in 2021 to N28.02 billion ($67.5 million) at the end of its 2022 fiscal year, despite a 51-percent increase in revenue from N771.6 billion ($1.86 billion) to N1.16 trillion ($2.8 billion).
The slower earnings growth can be attributed to a 59-percent increase in direct production costs, which outpaced the 51-percent increase in revenue, as well as an increase in administrative and finance costs during the period.
Despite disruptions in its operating environments, the group demonstrated resilience and strong performance across its food, agro-allied, and support segments, delivering top-line growth of 57 percent in the fourth quarter of 2022 and 51 percent for the year on the back of strong volume growth.
While commenting on the financial performance, Omoboyede Olusanya, group managing director of Flour Mills said the company is committed to implementing its long-term plan, which includes making additional investments in local content through product innovation across its five major value chains.
“With the acquisition of Honeywell Flour Mills Plc. and the attendant differentiated offers, our portfolio continues to evolve, strategically positioning the group for opportunities from the African Continental Free Trade Area,” he said.
As a result of the strong financial performance, the board recommended a final dividend of N2.15 ($0.00518) per share, for a total payout to shareholders of N8.8 billion ($21.2 million).
Flour Mills is one of Nigeria’s leading food and agro-allied groups. Since its inception in 1960, the company has grown into a major player in Nigeria, led by the late George Coumantaros and his son, John.
John Coumantaros, Flour Mills’ chairman, owns a majority 63.34-percent stake in the company, valued at N91.2 billion ($219.7 million).
At the end of its recently completed financial period, Flour Mills strengthened its position as the market leader in flour, semolina, and pasta manufacturing, as it obtained approval for the acquisition of Honeywell Flour Mills Plc.
Shares in the leading consumer goods company were worth N35.15 ($0.08467) per share as of press time on June 1, 57 basis points lower than their opening price on the local bourse this morning. Flour Mills’ market capitalization is presently N144 billion ($346.9 million).
