Flour Mills of Nigeria Plc grows revenue by 32% to N1.54 trillion

Flour Mills of Nigeria Plc (NGX: FLOURMILL) has reported a 32% growth in revenue for the financial year ended March 31, 2023. The company’s profit for the year also increased by 5%, according to the annual report released by the company.

Income statement:

Revenue increased to N1.54 trillion in 2023 from N1.16 trillion in 2022.
Cost of sales rose to N1.36 trillion from N1.06 trillion in 2022.
The gross profit increased to N177.10 billion from N108.09 billion.
Net operating losses rose to N21.82 billion from N135.89 million in 2022.
The company’s administrative expenses and finance cost rose to N40.53 billion and N55.73 billion respectively from N31.76 billion and N25.48 billion
Profit before tax rose narrowly by 1% to N39.78 billion from N39.22 billion.
Nevertheless, profit for the year rose by 5% to N29.50 billion from N28.02 billion in 2022 due to reduced net income tax expenses.

The Board of Directors recommended a total of N9.23 billion dividend (2022: N8.82 billion) representing a dividend of N2.25 (2022: N2.15) per ordinary share of 50 kobo each. This dividend, if approved by the shareholders, is subject to deduction of appropriate withholding tax.

Balance sheet

Flour Mills of Nigeria Plc’s total assets increased by 64.52% to N1.10 trillion as at March 31, 2023 from N667.01 billion in 2022.

Major components of the assets

Property, plant and equipment: N340.80 billion (N226.84 billion in 2022)
Inventories: N336.37 billion (N284.46 billion in 2022)
Prepayments: N228.07 billion (N55.29 billion in 2022)

Total liabilities rose to N872.17 billion in 2023 from N471.11 in 2022.

Major components of the liabilities:

Trade and other payables: N320.65 billion (N194.59 billion in 2022)
Short term borrowings: N210.24 billion (N114.81 billion in 2022)
Long term borrowings: N139.45 billion (34.02 billion in 2022).

Total equity increased to N225.22 billion in 2023 from N195.90 billion mainly due to increase in retained earnings to N132.67 billion from N111.10 billion in 2022.

Cash Flow

Net cash of N98.93 billion was generated from operating activities, up from N44.04 billion
Net cash of N185.13 billion was used in investing activities in 2023 against N44.85 billion used in 2022.
Net cash of N129.23 billion was generated from financing activities in 2023 against N11.38 billion used in 2022.

Activities during the year:

The company paid N600million to acquire 11,446,591 units of shares held by Dantata Investment and Securities Limited in Northern Nigerian Flour Mills Plc.

The board of directors approved the transfer of the investment in Golden Fertilizer Company Limited from Golden Sugar Company to Flour Mills of Nigeria Plc. Golden Fertilizer is in the business of fertilizer process and it serves as the holding company for the Agro- allied business under the Flour Mills Group.

Also, during the year, the company paid up N1 million for 2,000,000 ordinary shares of 50kobo each in Golden Penny Power Limited, a wholly owned subsidiary, incorporated in Nigeria to carry out the business of power generation, transmission and distribution. The group made a transfer of property, plant and equipment to Golden Penny Power Limited in the total amount of N8.1 billion at the book value from Golden Sugar Company (N6.2 billion), Nigerian Eagle Flour Mills Limited (N1.1billion), and Premium Edible Oil Products Limited (N850 million).

On Tuesday, the equity price rose 10% to close at N33 per share.

About Flour Mills of Nigeria Plc
Flour Mills of Nigeria Plc (The Company) was incorporated in Nigeria as a private limited liability Company on 29 September 1960 and was converted to a public liability company in November 1978. Its registered head office is located at 1 Golden Penny Place, Apapa, Lagos. These consolidated and separate financial statements comprise the Company and its subsidiaries (together referred to as the “Group”).

The Group and Company are 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 sales of fertilizer, manufacturing and marketing of laminated woven polypropylene sacks and flexible packaging materials, development of real estate properties for rental, operation of terminals A and B at the Apapa Port, customs clearing, forwarding agents, shipping agents and logistics.