Flour Mills Boost Half-year Revenue From Food, Agro Allied Segments

Flour Mills of Nigeria Plc, has announced its half-year unaudited results for the period ended 30 September 2022 revealing a 38% increase in revenue to N720.576 billion from N522.821 billion in 2021.

The result was amid an inflationary year that saw the price of goods and services increase significantly. In addition to the increasing prices, the Russia-Ukraine war set off a chain reaction in the global economy, causing a spike in essential commodities such as wheat. Despite these, the company witnessed an increase in revenue, underlying the importance of food as a necessity.

The audited results which were released to the Nigerian Exchange Group (NGX) indicated that the cost of sales increased 39% to N651.789 billion versus the prior period of 2021 which stood at N468.406 billion.

The revenue was enhanced on the back of the food and agro-allied segment of the group despite inflationary pressure and slim in the household wallets.

According to the financial statement, the miller said at the H1’23 Analyst / Investor Call that the food segment contributed 61.84% growth of the revenue to N445.671 billion from N337.452 billion in 2021 while the Agro-allied segment followed by 21.35 of the revenue with N153.901 billion from N101.060 billion in 2021.

Profit after tax dropped by 46% to N5.700 billion in 2022 from N10.528 billion in 2021.