Flour Mills of Nigeria Plc has released its unaudited financial statements for the half year 2023 (H1). The results show strong revenue growth across all business segments, despite a challenging macroeconomic environment. Gross profit reached N33.2 billion, compared to N25.7 billion in the first half of 2022; up 29.18%. H1’2023 commercial performance highlights.
Compared to H1’22, overall revenue increased by 38% to N721 billion, driven by favorable mix and some trade-related pricing. Strong revenue growth of 36% on average across all business segments.
The operating performance of the Food segment remained solid, despite a difficult environment with rising raw material prices and a somewhat lower volume base.
Golden Sugar reported double-digit revenue growth (51%) and solid profit growth thanks to increased volume and various customer engagement efforts to build customer loyalty.
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The group’s operational performance in the Food segment remains solid; Agro-Allied’s pre-tax profit remained at the level reached the previous year; The sugar segment recorded a significant rebound from Q2 2021 as expected due to a normalized competitive playing field, further expansion of the route to market in new and rural markets and a increased customer engagement.
The Group is integrating the Honeywell business to achieve anticipated synergies with a focus on balance sheet restructuring to reduce currency exposure and ensure manufacturing stability. This should lead to strong long-term results.
Commenting on the outcome and the Group’s strategic imperatives in the coming years, Boye Olusanya, Managing Director/Group Managing Director, said, “FMN continues to meet consumer needs through our sustainable market access structure and new product initiatives. through our contact points. As we can see in the H1 22/23 report, the Sugar segment registered a significant rebound compared to H1’21/22, a clear demonstration of the Group’s continued and significant investment in the sugar value chain and across all our key value chains and sectors. As the Group continues to make progress in its upstream integration activities through various strategic efforts, we remain committed to feeding the nation, every day.
“In addition, our investment in product innovation and supply chain optimization has been sustained as we continue to execute on our long-term strategy. As part of the Group’s strategic roadmap, FMN continues to put in place a business continuity plan to protect its supply chain and food production processes to ensure that Nigerians can continue to have access to their daily diet,” he said.