Thursday, July 25, 2019 /05:00 PM / By NSE With Additional Notes From Flour Mill's Press Release
Flour Mills of Nigeria Plc (referred to as "Flour Mills" or "FMN"), Nigeria's leading integrated food business and agro-allied Group, today announced its unaudited first quarter results for 2019, recording volume growth of 7% and improvements in PBT to N5.5 billion.
The results for the First Quarter reveal a strong performance as the Group continues to make significant gains with its strategy to improve operational efficiency and implementing cost control measures across its operations. Deleveraging and active balance sheet management strategy achieved significant reductions in finance costs which dropped by 27%.
Revenue, for the most part, remained stable, even in the light of strong economic headwinds and depressed consumer demand. Sales volumes appreciated by 7% while gross margins remained largely in line with figures from the previous year at 12.2%.
The turnaround in the Agro-Allied Division remained on track with Profit Before Tax at break-even. This was largely due to significant improvement in Premier Feeds and robust growths recorded in Golden Fertilizer. After the recently concluded restructuring and optimization of the agro-allied division, the businesses are now properly positioned to pursue value accretive opportunities which we envisage will continue to yield positive results in the year.
Commenting on the result, Paul Gbededo, the Group Managing Director, said:
"The first quarter result is a good start to the year and a great reflection of the direction that the business is headed as we continue to push our strategy of operational efficiency and sustainable growth. We envisage even more organic growth across the food segments, with anticipated moderations in cost of sales, as global wheat prices reduce and our improved investments in aligning marketing, sales and distribution activities boost earnings and increase market gains."
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