Flour Mills of Nigeria Plc (FMN) has reported a robust performance for the first quarter of 2025, ending June 30, 2024. The company’s revenue surged by 67.23% year-on-year to ₦763.19 billion, up from ₦456.38 billion in Q1 2024. This significant growth was driven by increased sales across its diversified product lines.
Thank you for reading this post, don't forget to subscribe!The company’s cost of sales also rose by 66.55% to ₦676.31 billion, resulting in a gross profit of ₦86.87 billion, a 72.72% increase from ₦50.30 billion in the same period last year. Despite the rise in operating expenses and impairments on trade receivables, FMN’s operating profit grew by 68.38% to ₦49.92 billion.
Finance income saw a dramatic increase of 841.71% to ₦1.59 billion, while finance costs slightly decreased by 3.33% to ₦16.07 billion, leading to a net finance cost improvement of 11.97%. However, the company faced a substantial exchange loss of ₦28.07 billion, which increased by 24.61% from the previous year.
Flour Mills reported a profit before tax of ₦7.36 billion, a remarkable turnaround from a loss of ₦9.34 billion in Q1 2024. After accounting for income tax, the company recorded a net profit of ₦6.98 billion, representing a 174.72% improvement from the previous year’s loss of ₦9.34 billion. The basic earnings per share (EPS) also rebounded to 1.94 kobo from a negative 2.49 kobo in the same quarter last year.
On the balance sheet, FMN’s total assets slightly decreased by 0.28% to ₦1.49 trillion, while total liabilities declined by 0.89% to ₦1.25 trillion. The company’s cash and cash equivalents fell by 9.59% to ₦158.98 billion, reflecting tighter cash flow management.
FMN’s debt-to-equity ratio improved to 160.7% from 173.7% in the previous year, indicating a gradual reduction in leverage. The company’s asset turnover ratio also improved to 0.51x from 0.31x, reflecting more efficient use of assets to generate revenue.
Despite these positive results, the company’s share price stood at ₦46.0, with a 52-week high of ₦48.5 and a low of ₦28.15. The price-to-earnings (P/E) ratio was recorded at 23.71x, with an earnings yield of 4.22%, indicating a relatively high valuation in the market.
Overall, Flour Mills of Nigeria Plc demonstrated a strong start to the fiscal year, with significant improvements in profitability and operational efficiency, positioning the company for sustained growth amidst Nigeria’s challenging economic environment.
