FMN profit before tax declines by 38.49%

Flour Mills Nigeria recorded low profitability at the end of its financial year as its profit before tax declined to N10.2 billion.

The amount showed that a drop of N6.367 billion or 38.49 per cent compared with N16.541 billion reported the previous day.

The company paid tax of N225.616 million during the period under review from N144.277 million reported in the preceding year, bringing profit after tax to N9.948 billion from N16.397 billion recorded in the comparable period of last year.

The company revenue also went down from N542.670 billion in the preceding year to N527.404 billion at the end of March this year.

The company said that inspire of the prevailing headwinds and harsh operating environment which further heightened by logistics challange in Apapa, FMN has make a remarkable progress with the group’s strategic directive to focus on market expansion while realigning its food and agro allied businesses for sustainable growth and profitability.

The company also said that the strategic action undertook to improve returns and deliver maximum gains for investors saw all FMN group businesses in the agricultural sector aligned under Golden Fertilizer Company, a fully owned Holding company.

The decision according to the company has started to yield appreciable improvements within the group, in the areas of cost maximisation and improved operational efficiency as the business make the most of their competitive advantage and synergies. This was supported by the strong cost control measures that been put in place by management within the year under review.

Commenting on the result, Group Chief Finance Officer, Anders Kristiasson said “our strategies to restructure the balance sheet base and optimise the financing costs have started to yield desired result, as the business showed increasing levels of efficiency.

Despite ongoing pressures on consumer disposable income in many of our target categories we continued delivered a stronger quarter four than last year.

Group managing director, Paul Gbededo said “we have made substantial progress this year even in the face of an adverse and challenging business environment. Our growth and efficiency initiatives across our various functions and businesses have started to show anticipated gains as we continue to focus on organic sales growth and position the business for continuous profitability.

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