Flour Mills PLC has released its Q2 2016 revenue report with 11% year on year growth.
In a statement signed by the company’s CEO, Paul Gbedebo, he said “in spite of the strong economic headwinds and tough business environment, devaluation of the Naira and unrest in the North East, Flour Mills Group had an inspiring year wherein Group Revenue grew by 11% from its 2015 figures of N308 billion to reach $342billion while Group Profit Before Tax increased by 49% from 147.7bitlion to $11.5 billion. Group Profit After Tax was 4414.4billion, 71.4% higher than $8.4 billion of 2015 financial year.
The Company, Flour Mills of Nigeria Plc, posted a Revenue of USD248 billion, a growth of 8% over the USD230 billion of last year. impressively, the Company’s Profit Before Tax grew by 589% to NGN146.2 billion from the 140.9billion posted last year, whilst Profit After Tax grew by 334% to NGN1410.4 billion.
He said the company’s cost of sales was impacted by higher cost of foreign currency due to foreign market deregulation resulting in closing blended exchange rate of NGN295 to $1 as against CBN rate of NGN197.50. The Company was able to offset the impact of the foregoing on its bottom-line only by gradual increases in setting prices of its products.
Paul said the strong improvement in revenue and profitability was primarily driven by volume growth and efficiency gains, while benefits arising from the sale of investment in our associate company – UNICEM helped to improve the bottom line.
He hinted that the company is determined to further restructure our operations, streamline our business operations to focus on core businesses and constantly monitor and manage our costs optimally to hedge against further economic challenges which might evolve. It is also noteworthy that Management is resolute in ensuring that sustainable returns and dividends from the Group’s agro allied investments are properly harnessed by maximizing local content in the Group’s products, bye- products and processes.
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