By Peter Egwuatu
DESPITE the challenging environment, the back integration and marketing strategies adopted by Flour Mills Nigeria Plc have contributed significantly to spur growth in its Profit Before Tax, PBT by 53.2 per cent to N13.48 billion for the first half H1, ended September 30, 2017 from N8.80 billion in the corresponding period of 2016.
The company also recorded growth in other performance indicators as its revenue was N298.44 billion for the six months ended 30th September 2017, an increase of 17 per cent when compared with N255.30 billion of the same period last year.
According to the results released on the Nigerian Stock Exchange, NSE, Flour Mills Nigeria Plc, Profit After Tax , PAT was N9.36billion, compared to N6.46 billion for the same period in 2016. The revenue was N298.44 billion for the six months ended September 30, 2017, an increase of 17 per cent when compared with N255.30 billion of the same period last year.
The Head, Corporate Business Development, Mr. Sadiq Usman, stated that, in the agro-allied division, “with our marketing and managerial strategies, the Group’s focus will remain on developing competences and improving execution capacity to backwardly integrate its core value chains; Sugar sweeteners, edible oils, feeds& proteins and Cassava starches.”
Commenting on the result, the Group Managing Director, Flour Mills, Paul M. Gbededo, stated: “Finance cost increased as against the previous year, mostly due to higher interest rates. Our half year results show continued growth through most segments of our businesses, especially in the food business, delivering strong top and bottom line financials in line with our objectives. The Group recorded growth from volume and product mix. This growth was despite what continued to be a challenging business environment.”
“Overall, the business shows an impressive performance in the first half of the year. We are positive that we are on track to meet our growth targets for the remaining part of 2017/18 financial year.
The food business value chain was responsible for an increase of N40bilion of the Group’s turnover”
The Chief Finance Officer (CFO), Mr. Jacques Vauthier, in his comment, said that the Management of the company was confident that this sector will record even stronger performance as the year progresses.