Flour Mills of Nigeria swings to pretax loss, cuts dividend

Flour Mills of Nigeria, a food and agro-allied company, reported a loss before tax of N236.68 million for the year ended March 31, 2024, compared with a profit of N39.78 billion in the previous year.

Its after-tax profit plunged to N3.54 billion from N29.5 billion, according to its annual report released on Sunday.

The company saw its finance costs jump to N208.81 billion from N87.21 billion amid rising interest rates and foreign exchange losses occasioned by naira devaluation.

Its board proposed a total dividend of N7.38 billion, down from N9.23 billion in 2023, representing N1.80 per ordinary share as against N2.25 in the prior year.

In November 2023, its shareholders, through a resolution, approved the restructuring of Nigeria Bag Manufacturing Division or BAGCO of the company to become a standalone subsidiary.

“Subsequent to year end, on 15 May 2024, a court ordered meeting was held where the restructuring was approved. The final regulatory approval process is still ongoing and yet to be finalised as at date of approval of the consolidated and separate financial statements,” Flour Mills said.

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