Flour Mills Declares N7.4b Dividend

The board of directors of Flour Mills of Nigeria (FMN) Plc has recommended payment of N7.38 billion to shareholders as the food and agro-allied company recorded net profit of N3.54 billion.

In a regulatory filing at the Nigerian Exchange (NGX) yesterday, Flour Mills indicated that shareholders will receive a dividend per share of N1.80 for the year ended March 31, 2024, 20 per cent drop from N2.25 paid for the 2023 business year. The company had distributed N9.23 billion for the 2023 business year.

The audited report and accounts of FMN for the year ended March 31, 2024 showed that turnover rose by 49 per cent to N2.3 trillion in 2024 as against N1.5 trillion recorded in the previous year. The company’s net profit however dropped by 88 per cent from N29.50 billion in 2023 to N3.54 billion. The bottom-line in 2024 was largely boosted by income tax credit. Basic earnings per share thus dropped from N7.25 in 2023 to N6 in 2024, a decline of 99 per cent.

The group’s top-line performance was underpinned by strong revenue growth across all business segments, including food, agro-allied, sugar, and support services. The food segment, recorded a 51 per cent increase in revenue, driven by new product launches and category flavour extensions.

The agro-allied segment also witnessed growth, with revenue increasing by 17 per cent and profit before tax rising by four per cent. The segment’s success was driven by larger export volumes, moderate price adjustments, and the introduction of new products in the fertilizer business.

Group Managing Director, Flour Mills of Nigeria (FMN) Plc, Boye Olusanya, said the group’s consistent execution and growth underscored financial and operational resilience.

According to him, despite the challenging economic environment, the company has solidified its position as a market leader in the food and agro-allied sector, driven by innovative product offerings and efficient operations.

Group Chief Finance Officer, Flour Mills of Nigeria (FMN) Plc, Anders Kristiansson said the company drove more efficiencies across the group as it continues delivering value in line with its long-term strategic plan.

“It is based on this mandate that the board also approved 180 kobo dividends for our shareholders, a decision driven by our value delivery mandate. Our solid cash generation and reduction of net debt provides the flexibility to navigate economic uncertainties and invest in growth opportunities,” Kristiansson said.

Kristiansson said FMN remains committed to its strategic priorities, including local content integration, production line expansions, and a strong innovation pipeline.

The group noted that Its robust financial position and diversified business model positions it well to capitalize on emerging opportunities and drive sustainable growth.

 

June 08, 2024