Shareholders of Flourmills of Nigeria Plc (FMN), Friday, applauded the capacity expansion and realignment of its core food business, even as they approved the firm’s approve the firm’s N2. 032 billion total dividend, translating to N1.00 per for every 50 kobo share for the 2017 financial year.
The shareholders, who noted that the backward integration strategy has further mitigated its reliance on imports, and exposure to external volatility, noted that the firm is already reaping the benefits of its expansion into agriculture.
Specifically, a shareholder, Funke Augustine, noting that Flourmills recorded improved performance during the period under review, however, charged it to continue on the good pact and intensify efforts to stay ahead of its peers in the industry.
Another shareholder, Timothy Adegboye, also commended the firm’s effort; while urging the management to sustain the profitability recorded, and ensure it continued to reward the shareholders of their investments.
Reviewing its performance, Flourmills chairman, John Coumantaros, explained that revenue grew by four per cent to N389 billion, while profit before tax stood at N14 billion, representing 29 per cent rise when compared to N10 billion recorded in the corresponding period of 2016.Profit before tax also rose to N14 billion or 29 per cent above the N10 billion recorded in the last financial year. However, Profit after tax went fell six per cent to N9.2 billion primarily due to the effect of deferred tax adjustment following the company’s exit from pioneer status.
“The Group’s revenue of N542 billion, represents an impressive 3.5% year-on-year growth. This was achieved through a combination of resilience in the face of a challenging environment, volume growth and product mix from our food and agro-allied businesses.
The results are a clear indication that our efforts to continually push for improved efficiency and synergy in the Group are yielding the expected results,” Coumantaros said.He explained that the rights issue undertaking in September 2017, was oversubscribed, adding that the net proceeds will significantly impact on the company’s financials and improve its capital structure.
The Group Managing Director, Paul Gbededo, said: “Our 2017 year-end result shows a remarkable growth in the Group’s revenue of N542 billion, which represents an impressive 3.5% year-on-year growth.
“This was achieved through a combination of resilience in the face of a challenging environment; volume growth and product mix from our food and agro-allied businesses. The results are a clear indication that our efforts to continually push for improved efficiency and synergy in the Group, are yielding the expected results.”
In the agricultural space, we have continued to consolidate our position, with a firm commitment to lead in this space while aligning with the agricultural promotion policies in the federal and state level where we operate. “We are critically looking into our investments in our backward integration initiatives and have confirmed our commitments towards future profitable growth by recapitalising various subsidiaries.“We are also impairing at company level, part of our investment in Kaboji Farm, our first agricultural investment that has now become our centre of excellence for seed and best agricultural practices in maize and soybean.”
Source: G Business