Flour Mills to Exploit Value-Accretive Opportunities for Business Growth

July 5, 2018
Flour Mills of Nigeria

By Dipo Olowookere

One of the leading flour millers in the country, Flour Mills of Nigeria Plc, has expressed its determination to exploit value-accretive opportunities in order to record more business and financial growths in the future.

Few days ago, the company released its financial statements for 2017.

During the period, the firm recorded a Profit After Tax (PAT) of N13.6 billion, while the Profit Before Tax (PBT) was N16.5 billion.

Chief Financial Officer (CFO) of the company, Mr Jacques Vauthier, while commenting on the results, noted that Flour Mills was making efforts to grow its business in the country.

According to him, during the financial year, decided to accelerate the depreciation period of some support services assets, resulting in a onetime expense of N1.2 billion.

He said, “In spite of these one-time exceptional expenses, and initial losses in some of our early stage agro-allied businesses, our group still recorded a Profit Before Tax of N16.4 billion, confirming our commitment towards cost controls and increasing our margins.

“In an effort to strengthen the company’s capital base, deleverage our balance sheet, and support our working capital needs, we embarked on, and have completed a rights issue program during the past months.

“With the successful completion of the rights issue program, we have now positioned the company to exploit value-accretive opportunities, whilst giving greater operational and financial flexibility to ensure business growth and continuity.”

Also speaking on the results, the Group Managing Director of Flour Mills, Mr Paul Gbededo, noted that the results were indication that efforts to continually push for improved efficiency and synergy in the group were yielding the expected results.

According to him, the firm has continued to consolidate its position in the agricultural segment, with firm commitment to become industry leader while aligning with the agricultural promotion policies at the federal and state levels.

“Our 2017 year-end result shows a remarkable growth in the group’s revenue of N542 billion, which represents an impressive 3.5 percent year on year growth.

“This was achieved through a combination of resilience in the face of a challenging environment; volume growth and product mix from our food and agro-allied businesses.

“We are critically looking into our investments in our backward integration initiatives and have confirmed our commitments towards future profitable growth by recapitalising various subsidiaries.

“We are also impairing at company level, part of our investment in Kaboji Farm, our first agricultural investment, which has now become our centre of excellence for seed and best agricultural practices in maize and soybean,” he said.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

Leave a Reply

NCC
Previous Story

Telecom Operators Kick Against NCC’s Data Rollover Policy

General Electric GE
Next Story

GE, Lagos Sign Deal on Power, Healthcare Projects

Latest from Economy

Don't Miss