Flour Mills of Nigeria has unveiled its audited financial statement for the fiscal year ending March 31, 2024, disclosing a notable profit after tax of N3.54 billion. However, this figure represents a substantial 88% decline from the N29.5 billion recorded in the previous fiscal year, highlighting significant challenges faced by the company despite revenue growth.
During the fiscal year, the group experienced a pre-tax loss of N236.7 million, marking a stark 101% decline compared to the N39.8 billion pre-tax profit posted in the 2022/2023 fiscal year. A key contributing factor to these financial struggles was the considerable expenses incurred by the group, totaling a whopping N2 trillion on the cost of sales, with N1.84 trillion attributed to raw materials and packaging materials. The reported profits were largely influenced by a deferred tax credit of N3.78 billion.
Key Financial Highlights for FY 2024 vs FY 2023:
– Revenue: N2.29 trillion, +49% YoY
– Cost of sales: N2.02 trillion, +48% YoY
– Gross profit: N272.7 billion, +54% YoY
– Operating profit: N208.1 billion, +61% YoY
– Profit for the year: N3.54 billion, -88% YoY
– Total Assets: N1.49 trillion, +36% YoY
– Retained earnings: N126.6 billion, -4.5% YoY
Flour Mills of Nigeria, recognized as the largest revenue-generating consumer goods company in Nigeria, reported a revenue of approximately N2.29 trillion for the fiscal year. The group’s food segment generated N1.5 trillion, primarily from flour milling products, pasta, snacks, and noodles. Additionally, its agro-allied services segment contributed N332.9 billion, focusing on farming and the production of fertilizer, edible oils, livestock feeds, and poultry products. The sugar segment contributed N383.9 billion to the revenue.
Despite impressive turnover, the group faced significant cost challenges, with cost of sales reaching N2 trillion, mainly due to a 50% increase in raw materials costs. The gross margin for the fiscal year stood at 11.7%, slightly higher than the previous year. Operating profit experienced a significant growth of 61%, reaching N208 billion. Operating margin also increased to 9.1% from 8.4% in the previous year.
The group’s subsidiaries, including Nigerian Eagle Flour Mills Limited, Honeywell Flour Mills Plc, Northern Nigeria Flour Mills Plc, and Premier Feed Mills Company, also contributed to its performance. Notably, Nigerian Eagle Flour Mills Limited acquired controlling shares in Port Harcourt Flour Mills during the fiscal year. While Nigerian Eagle Flour Mills was the most profitable subsidiary, with a net income of N9.1 billion, Honeywell Flour Mills recorded a net loss of N10.1 billion. Premier Feed Mills posted a net income of N1.1 billion, and Northern Nigeria Flour Mills posted a net income of N1.5 billion during the fiscal year.
Credit: Nairametrics (Text Excluding Headline)
