By Dipo Olowookere
One of the leading flour millers in the country, Flour Mills of Nigeria, has bounced back to profitability in the first quarter of its financial year ended June 30, 2024, with a pre-tax profit of N7.4 billion compared with the loss position in the corresponding period of last year.
This has been made possible because of the policy direction of the organisation under the leadership of its chief executive, Mr Boye Olusanya, who said the results for Q1 of the 2024/2025 fiscal year showed that the firm’s “ability to deliver solid performance despite significant headwinds.”
“We’ve shown remarkable agility in navigating the challenging macroeconomic environment, including persistent inflation and exchange rate volatilities.
“Our focus on cost optimization, strategic pricing, and operational efficiencies has enabled us to maintain our market leadership in the Food and Agro-Allied sector,” he added.
A review of the financial statements indicated that revenue improved by 67 per cent to N763.2 billion, in contrast to the N456.4 billion achieved in the same time of last year, with over 60 per cent growth across all business segments.
Business Post observed that the Food and Sugar segments both witnessed strong top-line growth and returned to profitability in Q1’24/25 with solid improvements compared with the same period of the preceding year.
Also, the Agro-Allied segment recorded a remarkable growth of 68 per cent, driven by stronger performance in the fertilizer and oil and fats businesses, as well as enhanced capacity utilization.
In the period under review, the company’s gross profit increased by 73 per cent to N86.9 billion, as operating profit rose by 68 per cent to N49.9 billion, supported by revenue growth and continuous cost optimization.
The leading Food and Agro-allied organisation posted a strong cash position of N159 billion, providing flexibility to invest in growth opportunities and navigate economic uncertainties.
“Our Q1’ 24/25 results reflect our commitment to creating value for our shareholders. The significant strengthening of our profitability, coupled with our strong cash position, provides us with the flexibility to invest in growth opportunities and navigate economic uncertainties,” the chief finance officer, Mr Anders Kristiansson, stated.
“We remain focused on optimizing our capital structure and reducing funding costs to improve profitability and deliver long-term value,” he added.
Adedapo Adesanya 
Modupe Gbadeyanka