NIGERIA – Flour Mills of Nigeria Plc (FMN) has reported a substantial 67% increase in revenue for the first quarter ended June 30, 2024, reaching US$1.6 billion (N763.2 billion), up from US$1 billion (N456.4 billion) in the same period last year.
The company’s gross profit soared by 73% to around US$188 million (N86.9 billion). FMN’s Q1 2024/2025 profit stood at US$16.2 million (N7.4 billion), marking a significant turnaround from the loss recorded in the previous year’s first quarter and aligning with profit levels seen over the past two years.
Operating profit also saw a notable rise, reaching US$109.6 million (N49.9 billion), supported by the revenue increase and effective cost management strategies.
The company maintained a robust cash position of US$348 million (N159 billion), providing the flexibility to invest in growth opportunities and manage economic uncertainties.
Boye Olusanya, Group Managing Director/Chief Executive Officer of FMN, commented on the results, stating,
“Our Q1’24/25 results demonstrate FMN’s 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 highlighted a 68% growth in the agro-allied segment, driven by improvements in the fertilizer and oil and fats businesses, as well as enhanced capacity utilization.
Chief Finance Officer Anders Kristiansson emphasized the strength of FMN’s diversified business model, noting, “Our Q1’24/25 results reflect our commitment to creating value for our shareholders. The significant strengthening of our profitability, coupled with our strong cash position, provides us with the flexibility to invest in growth opportunities and navigate economic uncertainties.”
Kristiansson reaffirmed the company’s dedication to its “Feeding and Enriching Lives, Every Day” mission while focusing on long-term shareholder value through strategic investments and operational excellence.
The impressive financial report comes just after FMN, in collaboration with Bühler and Olam Agri, inaugurated a pioneering grains application center in Kano, Nigeria, to revolutionize the processing of local and ancient grains.
The center’s primary goal is to advance the industrial processing of local grains, contributing to affordable nutrition. Johannes Wick, CEO of Bühler’s Grains & Food segment, emphasized the significance of this development: “Sustainable food value chains utilizing local grains are the number one priority to develop Africa.”
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