Flour Mills of Nig Plc: Q3 2016 Result - Words from Management

Proshare

Monday, February 08, 2016 5:48 PM / Cordros Capital

Cordros had a call last week (Friday) with the management of Flour Mills of Nigeria Plc (FLOURMILL) to discuss the recently released results for the period ended 31 December 2015 i.e. Q3-15/16 and 9M-15/16.

Following the result/call, we have revised estimate for 2016 PAT down to N19.68 billion (previously N26.56 billion), which is reflective of the impact of other losses reported in the third quarter.

In addition, 2017 PAT was reduced to N2.07 billion (from N2.62 billion), being the net outcome of scaling down estimates for other income (to accommodate potential currency headwinds), investment income (in view of a more accommodative monetary policy), and operating expenses (taking into consideration savings from the ongoing reorganization of RTM and merger of subsidiaries).

Our 12-month TP for the stock is however unchanged at N40.55, as we have rolled forward valuation to 2017e and slightly reduced capex estimates to below N20 billion over the medium term (as guided by management).

NB: Proshare wrote formally to Flour Mills Plc on the subject of their financial charges specifically last week but up till the time of this report, have not received any response from the company.

 

Related News

1.              FLOURMILL Declares N19 billion PAT in Q3'16 Result,(SP:N18.05k)

2.             Flour Mills of Nig records negative PBT/PAT in Q3-15/16; Downside risks remain

3.             FLOURMILL Declares N19 billion PAT in Q3'16 Result,(SP:N18.05k)

4.             FLOURMILL Stock is heading towards south side with descending triangle formation 

5.              FLOURMILL Appoints Joseph Odion Umolu as Company Secretary Effective Jan 1 2016

6.             FLOURMILL Sales Grows by 17 YoY in Q2 16 Results Shares Rated NEUTRAL

7.              FLOURMILL Declares N24.02 billion PAT in Q2 16 Result SP N21.16k

8.             FlourMills’ FY'15 results - Tax writeback and part ... – Jul 22, 2015

9.             FlourMills of Nigeria Plc – Audited Reports for 2014 – Mar 31, 2015

10.         FlourMills of Nigeria delivers a negative outlook ... – Feb 18, 2015

11.           Flour Mills of Nigeria Plc: H1-15 Results ... – Nov 05, 2014

12.          Flour Mills of Nigeria Plc - Finance Cost Weighs ... – DLM Nov 2014

13.          Flour Mills of Nigeria Plc - Divestment from United Cement Co ... – Nov 18, 2014

14.          Equity Research: Flour Mills Nigeria Plc – Dec 27, 2013

15.       UBA Visits Flour Mills Nigeria Plc On the back of the successful conclusion of the N37.5bn Series 1 fixed rate senior unsecured bond issue – Dec 14, 2010   

READ MORE:
Related News
SCROLL TO TOP