Friday, August 03, 2018 06:40 PM / Proshare Markets
Flour Mills of Nigeria Plc held its Q1 2019 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.
The company in its review of the operating environment stated that inflation rate continue to moderate as the CBN again retain the MPR at 14% while the IMF upgraded its forecasts for Nigeria’s 2019 GDP to 2.3% and retained its 2018 forecasts at 2.1%.
Flour Mills of Nigeria Plc recorded a revenue of N133.03bn in Q1 2019 as against N148.98bn in Q1 2018, down by 10.7% YoY while its profit for the period also decreased by 19.5% YoY from N4.53bn in Q1 2018 to N3.65bn in Q1 2019.
The food, agro-allied and logistics firm recorded an Increase of about 15.6% in administrative expenses which is mostly driven by higher cost of employment and other general overheads
At the close of trading today, the share price of Flour Mills of Nigeria Plc dropped by a tick size of -0.37% to close at N27.00k from N27.1ok previous close price.
In a nutshell, below are the key takeaways from the Q1 2019 earnings presentation made by the company;
1. The firm has made some reductions in the selling price of its flour and sugar business.
2. Its edible oil business are yet to fully deliver on its growth objectives while increased competition in animal feed market has affected both it top and bottom line
3. The management stated that its net debt has remained stable and no major CAPEX made during the period under review.
4. Flour Mills expects to register its planned Bond Issue in the coming weeks in order to optimize the structure of its Balance Sheet; and
5. Its food revenue growth was driven mostly by its pasta, noodles and sugar business offset by lower selling prices in flour and sugar.