Flour Mills of Nigeria has reported a profit before tax of N7.33 billion for the first quarter of the 2022 financial year, up from N7.26 billion in the same period last year.
Its gross profit reached N33.2 billion, up from N25.7 billion in Q1 2021 as revenue rose to N339.6 billion from N233.7 billion, according to a statement.
It said the Honeywell Flour Mills Plc acquisition was completed in May 2022 and the transitional process resulted in an N1.1bn deficit for HFMP and N0.4bn one-off transactional cost for Flour Mills.
The company’s sugar segment saw a 64 percent revenue with stabilised trading environments and strong demand for brown sugar, which is locally produced at its farm in Sunti, it said.
It said its animal feeds business attained 21 percent revenue growth, driven by investments in logistics infrastructure and farmer training extension services across the country.
The Group Managing Director of Flour Mills, Omoboyede Olusanya, said, “Despite the challenging socioeconomic environment, we continue to deliver strong business performance with resilience and operational excellence. Our increased operational efficiency with accelerated plans for our supply chain optimisation, content localization, and cost optimisation across our business segments has helped to cushion the sharp rise in the cost of raw materials.
“The group is dedicated to achieving sector strategic growth opportunities, both organic and inorganic as we continue to create value for our shareholders.”