Flour Mills of Nigeria Plc, has announced its first quarter unaudited results for the period ended 30 June 2022 revealing 45.3% rise in revenue to N339.601 billion from N233.703 billion in 2021.
The result was achieved despite rising inflation that impacted significantly on the prices of goods and services. In addition to the increasing prices, the Russia-Ukraine war caused disruptions in the global food chains, which 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 cost of sales increased by 47% to N306.352 billion from N208.004 billion achieved in 2021.
According to the company’s financial statement, the miller’s food segment contributed 63% growth of the revenue to N213.166 billion from N146.925 billion in 2021, while its Agro Allied segment followed with 45% of the revenue with N65.652 billion from N47.588 billion in 2021.
Profit after tax rose marginally by 0.89% to N5.495 billion in 2022 from N 5.446 billion in 2021.
Flour Mills of Nigeria Plc had posted a N28 billion profit for the year ended 31st of March 2022. This is following a consequent rise in the revenue of the company by 51%, from N772 billion to N1.16 trillion.
The report shows that the cost of sales increased with the revenue during the period by 59% to hit N1.1 trillion from N665 billion resulting in a gross profit of N108 billion, closing in on N106 billion in the previous year.
While the company saw a net operating loss of N135 million during the period, the amount is relatively mild compared to the N15 billion loss for the same purpose in the previous year. Also, selling and distribution expenses, as well as administrative expenses, amounted to N11 billion and N31 billion from a respective N12 billion and N29 billion. These influenced the operating profit to record a N66 billion in 2022 compared to the N52 billion in 2021.
Operating income was valued at N9.15 during the study period from N9.5 in 2019. This consists of dividend income at N3.5 billion, other income at N5.19 as well as rental income and gains on disposal of property and equipment. Meanwhile, the other operating income of the Group includes the sum of N3.883 billion remeasurement gain from the initial 49% investment in UBA Zambia.
The employee benefit expenses rose to reach N52.3 billion in H1 2022 from N42.6 billion in H1 2021 as the group noted that it continues to invest in staff training. It stated, “The Bank encourages participation of its employees in arriving at decisions in respect of matters affecting their well-being. To this end, the Bank provides formal and informal opportunities where employees deliberate on issues affecting the Bank and employees’ interest, with a view to making inputs to decision thereon.
“The Bank places premium on the development of its manpower. In addition to the routine online Executive Chat, wherein employees interact with the Management to discuss issues of customer and employee satisfaction, the GMD/CEO operates an open-door policy and encourages employees to channel suggestions and complaints to him as may be required.
Other operating expenses such as Fuel, repairs and maintenance was up from N13 billion to N16.7 billion, banking and sector resolution cost was up to record N31 billion from N27 billion amongst others.