Flour Mills of Nigeria Plc has officially reported a profit before tax of N25bn for a nine-month period. The company recorded a very solid performance across food, agro-allied and support segments, delivering a solid growth of 51 per cent in the third quarter and 49 per cent in nine months.
“Persistent good operating performance in the food segment; continuous improvement in the agro-allied and support segments alongside strong volume growth resulted in an impressive profit before tax of N25bn in nine months and N9.8bn in Q3 – up nine per cent and eight per cent respectively,” it said.
It said the agro-allied segment contributed 42 per cent (N10.7bn) in nine months to the group’s profit before tax following the increase in local demand and improved export operations.
“The group’s strong operating performance was also supported by the increase in CAPEX investments from N10bn to N33bn and enhanced sourcing of local raw materials during the harvest period in comparison to the previous year, evidencing strong focus on expansion while maximizing growth prospects,” the statement said.
Flour Mills gave a statement saying that as part of its expansion plans to meet growth demands, it installed a new pasta line, concluded the construction of a soya plant in Agbara, and purchased 60 new trucks during the review period.
The Group Managing Director, Omoboyede Olusanya, said, “The group remains committed to executing its overall long-term strategy to maintain growth and sustain profitability by increasing local content through product innovation across our core value chains, as evidenced by the third quarter’s earnings trend.
“In our new operating environment, our increased operational efficiency and accelerated optimisation plans have resulted in competitive product offerings and profitability. We will continue to invest in production capacity and make investment decisions that will strategically position the group for the opportunities that will arise from the African Continental Free Trade Agreement.”
