Flour Mills of Nigeria Plc has reported revenue of N400.641 billion for the third quarter financial year, ended December 31, 2018. The result showed a decline of 6.28 per cent from N427.508 billion recorded in the previous nine months in 2017.
The result showed that sales income fell slightly, when compared to the previous financials and there was significant fall in net profit, despite an equally huge cut in tax expenses for the period, even as finance costs dropped.
The management successfully constrained cost of sales which only rose by 4.69 per cent from N371.472 billion in the corresponding period of 2017, to N354.047billion within the period under review. This resulted in gross profit of N46.594 billion, down by 16.85 per cent from N56.036 billion.
Selling and distribution expenses increased by 46.95 per cent to N5.932 billion from N4.037 billion achieved in the comparable period. The administrative expenses grew by 12.21 per centvto N14.937 billion, as against the previous N13.311billion; even as net operating gains slumped from N5.507 billion to N1.568 billion, representing a 71.53 per cent drop during the period.
There was significant fall in net profit, despite an equally huge cut in tax expenses for the period, even as finance costs dropped.
Operating profit therefore dropped by 38.24 per cent from N44.194 billion to N27.292 billion at the end of December last year while investment income for the period also went to 15.31 per cent from N465.22 million to N536.459 million; just as finance cost reduced by 34.21 per cent from N25.157 billion in 2017, to N16.55 billion.