Flour Mills of Nigeria Plc, a corporation that deals in foods and allied industries, increased its profit by 5.32 percent to N29.504 billion by the end of the fiscal year in March 2023 from N 28,015 billion reported during the same period in 2022.
The organization reported in its Annual Report, submitted to the Nigerian Exchange Limited on Tuesday, a 32% increase in income, from N1.163 trillion to N1.539 trillion.
Additionally, FMN reported a loss of N9.337 billion in its unaudited financial reports for the three months ending June 30, 2023. In 2022, the business had earned N5.812 billion.
FMN Plc stated in the notes that the reason for the past quarter’s loss before tax of N9.3 billion was the foreign currency loss of N22.5 billion.
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“The operating profit would have risen by 52% had the exchange rate not been devalued. We expect to see a significant improvement in profit generation in the upcoming period, the report stated. “Management remains optimistic that the current government monetary policies at stabilizing the forex market, and management continues effort in sales and marketing activities geared toward boosting our top line while keeping costs under control.
The company’s board suggested paying stockholders a total dividend of N9.225 billion. This is a dividend of N2.25 (2022: N2.15) per ordinary share of 50 kobo and is 5% greater than the N8.815bn paid at the end of March 2022.
Within the period under review, the company’s assets grew by 64.47 percent to N1.097tn compared to N667bn in 2022 while total liabilities surged by 85.13 percent to N872.171bn from N471.107bn.
On 12 May 2022, FMN acquired 77.75 percent of the voting rights of Honeywell Flour Mills Plc. The company said that the transaction was entered into as part of “FMN Group’s global growth strategy, to create a stronger and more resilient national champion for Nigeria and further enhance food security. The transaction combined the strategic talents that are unique to each company, enhanced customer’s access to a wider range of innovative products, and enabled FMN to expand its group operations.”
The company was incorporated in Nigeria on 29 September 1960 as a private limited liability company and converted to a public liability company in November 1978. A company registered in Liberia, Excelsior Shipping Company Limited, is the ultimate holding company with 2,597,314,890 units of shares held representing a 63 percent stake.
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The Group is primarily engaged in flour milling; production of pasta, noodles, edible oil, and refined sugar; production of livestock feeds; farming and other agro-allied activities; distribution and sale of fertilizer; manufacturing and marketing of laminated woven polypropylene sacks and flexible packaging materials; operation of Terminals A and B at the Apapa Port; customs clearing, development of real estate properties for rental purposes, forwarding and shipping agents and logistics.