By Dipo Olowookere
Shareholders of Flour Mills Nigeria Plc will receive N1.80 per share as a dividend for the 2024 financial year of the organisation, which ended on March 31, 2024, the board has said.
The board recommended the cash reward after the company put up an outstanding performance across its business segments in the year under review despite the challenging operating environment caused by high inflation, declining purchasing power of consumers, the foreign exchange (FX) crisis and others.
The leading food and agro-allied firm, during an analysts’ conference call on Monday to speak on its financial statements for the full year and fourth quarter filed with the Nigerian Exchange (NGX) Limited, attributed the strong performance to the strategies implemented by the board and management of the organisation.
A review showed that Flour Mills demonstrated resilience and agility in navigating a dynamic economic landscape by growing its revenue by 49 per cent to N2.3 trillion from N1.5 trillion in the previous year, driven by sustained demand across all business segments, including Food, Agro-Allied, Sugar, and Support services.
The Food segment recorded a 51 per cent increase in revenue as a result of new product launches and category flavour extensions.
The Agro-allied segment also witnessed remarkable growth, with revenue increasing by 17 per cent, driven by larger export volumes, moderate price adjustments, and the introduction of new products in the Fertilizer business.
The effective portfolio management product innovations, pricing and cost optimisation measures triggered a 61 per cent rise in operating profit after the gross profit rose by 54 per cent to N273 billion.
It was observed that pre-tax profit and forex impact improved by 90 per cent to N141 billion, with the company generating significant cash flow, resulting in a solid net cash position of N176 billion, providing flexibility to invest in growth opportunities and the ability to fulfil debt obligations.
“Our consistent execution and growth underscore Flour Mills’ financial and operational resilience. Despite the challenging economic environment, we have solidified our position as a market leader in the Food and Agro-allied sector, driven by innovative product offerings and efficient operations,” the chief executive of the firm, Mr Boye Olusanya, commented.
On his part, the Chief Financial Officer of Flour Mills, Mr Anders Kristiansson, said, “As we drive more efficiencies across the group, we expect to continue delivering value in line with our long-term strategic plan.
“Our solid cash generation and reduction of net debt provides the flexibility to navigate economic uncertainties and invest in growth opportunities.”