Economy

Flour Mills to Drive Profitability Across Key Segments

Published

7 years ago

05/09/2019

By Adedapo Adesanya

Following a run-of-the-mill performance in the year ended March 31, 2019, Flour Mills of Nigeria Plc is looking forward to drive profitability across its key segments in order to emerge stronger and better.

This was disclosed by the company’s Chairman, Mr John Coumantaros, at the company’s Annual General Meeting (AGM) on Wednesday, September 4, 2019 in Lagos.

Mr Coumantaros noted that following the previous period’s performance, the company was committed and determined to focus on strategies that will improve efficiency and synergy, while driving profitability in all key segments of the group.

Flour Mills, in the previous financial year, recorded drops in revenue, profit, and basic per earning shares indices. The poor performance was attributed to constraints caused by poor power and infrastructure, traffic, soaring input costs, and socio-economic circumstances.

However, the Chairman assured that the board recognizes the importance of improving ahead of the new financial year in progress, noting that the initiatives put in place had started yielding desired results.

“Our strategy to further restructure our balance sheet and optimize the financing costs achieved appreciable results with the significant reduction in net debt by N21.2 billion, while financing costs reduced by 30 percent (N9.8 billion) to N22.9 billion as at 31st March, 2019,” he said.

Accordingly, he also mentioned that working across the four main pillars of the company’s operations – Food Division, Sweetener Division, Agro-allied Division, and Support Services Division, the group was positioned to take the essential leap for continued growth and profitability.

In its food division, the key 5 value chains of grains; oils and fats; sweeteners; proteins and starches are to receive the necessary structure and support in bringing about share gain as imperative strategies has continued to strengthen the service delivery and implemented regionally differentiated plans and offerings.

Working on its innovation, Mr Coumantaros said the group has introduced new and exciting product focused on local content.

“These include the introduction of Golden Penny ‘Dawavita’ which is made from 100 percent natural, yellow Sorghum. Our consumers who are based in the northern part of Nigeria can now enjoy ‘Tuwon Dawa,’ a popular local staple.

“We also introduced Mai Kwabo Pasta and two new flour variants – Easy Bake and Classic flour,” he added.

‘In improving growth across its Sweetener Division through the Golden Sugar Company (GSC), Mr Coumantaros explained: “We introduced the GSC Operational excellence programme which is helping us reduce direct costs, raw material waste and chemical usage resulting in significant savings and employee engagement.”

Despite a drawback due to flood that resulted in damage of its cultivations, he assured that the company has recovered the land and fortified the channel effectively.

“I am happy to report that we have been able to recover the areas lost to the flood and a project to further strengthen our dyke by placing 300,000^m3additional material along 13km has also been completed,” he announced to shareholders present at the meeting yesterday.

Within its Agro-allied division, he assured that there had been significant structural changes along core business business functions disclosing that the agro-allied businesses of the company would now operate under a wholly-owned Agro-allied holding company.

“This was achieved through a Scheme of External restructuring between flour mills of Nigeria Plc and Golden Fertilizer Company Limited (GFC) where GFC emerged as the holding company for the agro-allied businesses and value chains,” Mr Coumantaros said.

The Chairman then assured shareholders that the manufacturing company has started exporting its Golden Penny Garri and High-Quality Cassava Flour (HQCF) to the United States of America and Europe.

“We are looking forward to build even further on this during the current financial year by creating more avenues for Nigerians in the diaspora to get access to our Garri, and equally provide a gluten-free flour alternative for those who are gluten intolerant,” he said.

He then assured shareholders that with the expansion, proper alignment and restructuring coupled with optimal operation of its supply chain put in place that the business would remain in a position of strength and continue to generate growth and create value for shareholders in the coming years.

Economy

Nigerian Stocks Chalk up 0.33% on Positive Market Breadth Index

Published

42 minutes ago

09/06/2026

Dipo Olowookere

By Dipo Olowookere

Renewed buying interest raised the Nigerian Exchange (NGX) Limited by 0.33 per cent on Monday, with gains recorded in almost all the major sectors of the bourse at the close of transactions.

According to data harvested by Business Post, the insurance counter expanded by 0.62 per cent, the banking index grew by 0.59 per cent, the energy sector appreciated by 0.40 per cent, and the consumer goods space improved by 0.10 per cent, while the industrial goods segment closed flat.

When the closing gong was struck by 4 pm to signify the close of business on Customs Street, the All-Share Index (ASI) was up by 1,113.76 points to 243,707.07 points from 242,593.31 points, and the market capitalisation chalked up N714 billion to close at N156.308 trillion compared with the previous session’s N155.594 trillion.

Interest in Nigerian stocks yesterday resulted in a rise in the activity level, with the trading volume soaring by 17.86 per cent to 717.2 million units from 608.5 million units. The trading value advanced by 77.19 per cent to N56.7 billion from N32.0 billion, and the number of deals surged by 36.22 per cent to 73,321 deals from 53,826 deals.

FCMB was the busiest stock during the trading day, with a turnover of 152.3 million units worth N1.8 billion, Premier Paints exchanged 61.0 million units valued at N135.3 million, Dangote Cement traded 34.7 million units for N29.7 billion, The Initiates sold 32.8 million units worth N1.0 billion, and Jaiz Bank transacted 32.6 million units valued at N293.3 million.

Yesterday, the market breadth index was positive after the exchange closed with 37 price gainers and 28 price losers, representing strong investor sentiment.

International Energy Insurance gained 9.92 per cent to settle at N7.98, the Initiates added 9.91 per cent to its share price to quote at N32.15, ABC Transport garnered 9.68 per cent to trade at N6.80, Abbey Mortgage Bank grew by 9.63 per cent to close at N10.25, and Linkage Assurance soared by 9.36 per cent to N1.87.

On the flip side, Fidson Healthcare gave up 10.00 per cent to finish at N122.85, Academy Press crashed by 9.70 per cent to N7.45, RT Briscoe depreciated by 9.43 per cent to N13.45, SUNU Assurances tumbled by 9.37 per cent to N4.06, and Learn Africa decreased by 8.70 per cent to N10.50.

Economy

NASD OTC Exchange Opens Week Lower as Valuation Dips N1.27bn

Published

44 minutes ago

09/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange recorded a marginal 0.05 per cent drop on Monday, June 8, depleting the market capitalisation by N1.27 billion to N2.606 trillion from N2.607 trillion, and cutting the Unlisted Security Index (NSI) by 2.12 points to 4,356.20 points from the previous 4,358.32 points.

The contraction witnessed during the session was triggered by a price loser, which overpowered that gains recorded by two securities on the trading platform.

Data indicated that MRS Oil Plc lost N6 at the close of business to settle at N165.00 per share compared with last Friday’s price of N171.00 per share.

Conversely, Lighthouse Financial Services Plc added 9 Kobo to sell at N1.03 per unit versus 94 Kobo per unit, and Central Securities Clearing System (CSCS) Plc appreciated by 8 Kobo to N78.48 per share from N78.40 per share.

The volume of securities traded by investors yesterday soared by 51.9 per cent to 213,188 units from 140,345 units, and the value of securities increased by 12.6 per cent to N20.2 million from N17.9 million, while the number of deals executed fell by 7.4 per cent to 25 deals from 27 deals.

Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 64.8 million units exchanged for N4.4 billion.

GNI Plc also remained as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, trailed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.

Economy

Naira Loses Against Dollar Official, Black Markets

Published

4 hours ago

09/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira opened the new trading week on a negative note on Monday at the Nigerian Autonomous Foreign Exchange Market (NAFEX) and the black market.

At the parallel market, the Nigerian currency weakened against the US Dollar by N5 to sell for N1,380/$1 compared with the preceding session’s rate of N1,375/$1, and at the GTBank FX desk, it shed N1 to trade at N1,373/$1 versus N1,372/$1.

At the official market, it lost 63 Kobo or 0.05 per cent against the Dollar during the session to close at N1,362.84/$1, in contrast to last Friday’s value of N1,362.21/$1.

However, the Nigerian Naira gained N2.30 against the Pound Sterling at the spot market yesterday, quoting at N1,821.29/£1 compared with the previous rate of N1,823.59/£1, and improved against the Euro by 23 Kobo to settle at N1,574.35/€1 versus N1,574.58/€1.

Data from the Central Bank of Nigeria (CBN) showed that interbank forex turnover increased to $92.248 million across 90 deals, from $73.565 million last Friday.

On the policy front, participants believed that the application of the fourth edition of the Foreign Exchange Manual of the central bank, which introduces updated guidelines for foreign exchange transactions and tightening compliance requirements for authorised dealers and market participants, will enhance market flexibility and ease previous restrictions.

Meanwhile, the cryptocurrency market snapped from recent declines, jolted by Strategy’s purchase of 1,550 Bitcoin for approximately $101 million, increasing its total holdings to 845,256 BTC. The company raised $181 million through common stock sales, using the proceeds to fund the bitcoin purchase and increase its cash reserves to $1 billion, pushing the price of the coin higher by 3.2 per cent to $63,731.69.

Cardano (ADA) appreciated by 8.4 per cent to $0.1738, Ethereum (ETH) rose by 5.2 per cent to $1,711.54, Solana (SOL) expanded by 5.1 per cent to $67.82, and Ripple (XRP) improved by 4.9 per cent to $1.18.

Further, Dogecoin (DOGE) jumped by 4.3 per cent to $0.0873, Binance Coin (BNB) soared by 2.7 per cent to $609.50, and TRON (TRX) increased by 0.7 per cent to $0.3274, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $0.9997 and $0.9998, respectively.