Flour Mills Records N33.2bn Revenue Growth After Honeywell Takeover

Flour Mills of Nigeria has recorded first quarterly growth after takeover of rival company, Honeywell Flour Mills Plc.

The company said on Monday in its financial statement that the growth was recorded despite the country’s harsh operating environment.

Flour Mills said performance across all segments- food, agro-allied sugar, and support segments helped it reach N33.2bn in first quarter 2022, up from N25.7bn in same period of 2021.

Profit rose N7.3bn up by one per cent, driven by investment in route to customer redistribution and improved customer interface engagement.

But the company said, “Honeywell Flour Mills Plc (HFMP) acquisition transitional process resulted in an N1.1bn deficit for HFMP and N0.4bn one-off transactional cost for FMN. Earnings before tax growth net of transitional costs would have been 15 per cent compared to the previous year.”

Flour Mills disclosed its sugar segment saw a 64 per cent surge in revenue due to strong demand for brown sugar which is locally produced at its farm in Sunti.

The animal feeds business grew 21 per cent revenue growth, driven by investments in logistics infrastructure and farmer training extension services across the Nigeria, the company explained.

“Despite the challenging socio-economic environment, we continue to deliver strong business performance with resilience and operational excellence.

“Our increased operational efficiency with accelerated plans for our supply chain optimisation, content localisation, and cost
optimization across our business segments has helped to cushion the sharp rise in the cost of raw materials.

“We would always be committed to our purpose of Feeding the Nation, Every day through our offerings of quality products and services,” said Omoboyede Olusanya, the Group Managing Director.