Flour Mills of Nigeria Plc (NSE- FLOURMILL) has released its financial statements for the first half of its accounting year, for the period ended 30 September 2020. The company recorded increases in both revenue and profit after taxation, extending the performance seen in its first-quarter reports.
Revenue grew by 31.2% YoY to N355.109 billion from N270.762 billion recorded in the same period in 2019. The cost of sales represented 85.8% of the total revenue. In the three months from July to September 2020, the revenue grew by 47.4% to N200.530 billion from the same period in 2019.
Gross profit grew by 58% to N50.290 billion from N31.777 billion in 2019, with the gross margin rising to 14.2% in 2020 from 11.7% in 2019. The gross profit for the three months ended 30 September 2020, rose by 61.7% to N24.740 billion.
Operating profit grew by 41.1% to 23.731 billion as the company recorded N13.001 billion as an administrative expense, 4.405 billion as selling and distribution expense, and N8.854 billion as an impairment loss on trade and intercompany receivables. For the three months ended 30 September 2020, the operating profit grew by 84.0%.
Profit after tax rose by 68.3% to N9.933 billion in 2020 from N5.903 billion in the same period in 2019. The company registered an increase in fiancé cost N9.951 billion from N8.838 billion in 2019 and a tax expense of N4.674 billion against N2.731 billion it paid in 2019.
The profit after taxation jumped by 197.7% to N4.962 billion for the three months ended 30 September 2020 compared to the same period in 2019.
The basic earnings per share stood at N2.33.
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The total assets rose to N496.453 billion as at 30 September 2020 from the N432.453 billion it stood as at 31 December 2019.
Major components of the assets
- Property, plant, and equipment – N211.459 billion
- Inventories – N125.795 billion
- Cash and cash equivalents – N80.134 billion
- Trade and other receivables – N26.140 billion
- Prepayment and deposit for import – N23.755 billion
32.2% of the total assets are financed by equity (N159.998 billion) whereas 67.8% is financed by liability’
Flour Mills of Nigeria Plc holds a total liability of N336.456 billion representing an increase of 21.6% with the period in review.
The major components of the company’s liabilities are;
- Bank overdraft – N114.946 billion
- Long term borrowings – N75.760 billion
- Trade and other payables – N53.449 billion
- Customer deposits – N23.989 billion
- Lease Liabilities – N14.454 billion
Cash flow remained strong as the Cash and cash equivalents at end of the period stood at N80.134 billion against N20.6790 billion posted in the same period in 2019. The company generated N55.858 billion and N8.602 billion from its operating activities and financing activities respectively. However, it used N4.994 billion for investing activities due to the acquisition of property, plant, and equipment.
About Flour Mills of Nigeria Plc
The company was incorporated as a private limited Company on 29th September 1960 and was converted to a public liability Company in November 1978. The Group’s business is primarily divided into 4 business value chains which are;
The food business value chain involves flour milling, production of pasta, and noodles.
The sugar business value chain involves cultivating, processing, refining, and selling sugar.
The Agro-Allied business value chain involves livestock husbandry, production of livestock feeds, sale of fertilizer, edible oil, farming, and other agro-allied activities.
The Support business value chain involves the manufacturing and sales of laminated woven polypropylene sacks and flexible packaging materials, operation of terminals A and B at Apapa Port, customs clearing, forwarding agents, shipping agents and logistics, haulage, and real estate.
The current equity is N26.50 per share as it has gained 9.5% on Tuesday on the floor of the Nigerian Stock Exchange. YTD the share price is up by 22.84%.
By; Ifunanya Ikueze
