Flour Mills of Nigeria has reported a profit after tax of 68 per cent to N9.9bn year-on-year in its 2020/21 half year result for the six months ended September 30, 2020 compared to N5.9bn in the same period in 2019/20.
According to FMN’s unaudited H1 2020/21 financial statement released on Tuesday, key highlights of the result showed that the company maintained strong performance and increased investments in agro-allied yielded returns in the period under review.
It posted a continued growth, with profit before tax of N14.6bn compared to N8.4bn in 2019/20 or 69 per cent year-on-year growth with a Q2 growth of 160 per cent.
The firm recorded N355.1bn revenue or 31 per cent year-on-year growth compared to N270.8bn in H1 2019/20, with a Q2 growth of 47 per cent relative to previous year.
Further analysis of the result showed that increase in PBT was largely driven by the agro-allied segment, which generated a profit of N6.3bn compared to a loss the previous year.
Despite prevailing economic headwinds, the the company continued to show sustained growth in key segments, with the agro-allied segment taking the lead with a strong performance in edible oils and proteins supported by agro-inputs (fertiliser) and agro-distribution and aggregation structures.
In line with the company’s growth strategy, the edible oils and fats value chain saw a significant year-on-year increase of 32 per cent in volume turning in a profit when compared to the loss in H1 2019/20.
Commenting on the result, Paul Gbededo, Group Managing Director/Chief Executive Officer, stated, “With this result, our business has once again shown its resilience, by following the path of sustainable growth despite the prevailing challenges in both the local and global economy.”
