Flour Mills of Nigeria Plc (FMN), the nation’s leading integrated food business, has posted impressive financial results for the third quarter of 2023, showcasing remarkable volume growth, enhanced profitability, and robust performance across its core business segments.
The financial highlights for Q3 2023 reveal a 264% surge in gross profit to N125.3 billion compared to the same period in the previous year. Despite a volatile macroeconomic climate and foreign exchange headwinds, FMN exhibited resilience in its profitability, with profit before tax witnessing a substantial 29% increase to N8.5 billion.
The Food division, which constitutes over 60% of the Group’s revenue, emerged as a standout performer. With a 39% expansion in sales, the division attributed its success to strategic initiatives such as new product development, optimized distribution channels, and production enhancements. Notably, the regional targeted affordable brands, Auntie B and MaiKwabo, experienced a remarkable 58% volume uplift compared to the previous year.
The flagship national brand, Golden Penny, also contributed significantly to the division’s solid growth. Furthermore, FMN’s Food division emphasized cost optimization, particularly on critical raw materials like wheat.
Mr. Boye Olusanya, the Group Managing Director/Chief Executive Officer of FMN, expressed his views on the company’s growth, stating, “The success and sustenance of the FMN Brand is a promise made to all our shareholders/stakeholders. Our collective action as a Group is therefore geared towards keeping this promise. Progressively, we shall continue to boost our global competitiveness and viability to ensure that FMN is positioned to thrive amidst unprecedented environmental changes. In addition, the launch of the Power Company will further improve the efficiencies and transform our structure/operations.”
The Group’s Chief Finance Officer, Anders Kristiansson, also weighed in on the solid performance, stating, “Our consistent execution and growth underscore FMN’s financial and operational resilience. As we drive more efficiencies across the group, we expect to continue delivering value in line with our long-term strategic plan.”