The management of Flour Mills of Nigeria Plc, on Tuesday, released its financials for the half-year September 30, 2020, showing that net profit grew at a faster pace than revenue, despite significant N8.853bn net operating loss, compared to the N45.291m gains in the prior corresponding period of last year, or the N1.943bn or 71.16% increase in income tax expense from N2.73bn in 2019 to N4.674bn.
The “strong performance,” according to the management, was “in spite of the increasingly difficult terrain and uncertainties,” expressing optimism that with continued efforts in sales and marketing activities geared at boosting our top line while keeping the costs under control.”
According to the report presented through the Nigerian Stock Exchange (NSE), revenue grew by 31.15% from N270.761bn from N355.108bn; while cost of sales increased by 27.55% to N304.819bn from N238.984bn, of which material costs accounted for N266.677bn from N255.005bn; resulting in gross profit of N50.289bn, compared to the previous N31.777bn.
Selling and distribution expenses was flat at N4.405bn, as against the previous half-year’s N4.483bn; but administrative expenses increased from N10.517bn to N13.011bn; while impairment loss on trade and intercompany receivables stood at N287.655m from nil in the previous year; leaving an operating profit of N23.731bn from N16.82bn.
Finance income rose from N651.67m to N825.95m; just as finance costs stood at N9.951bn from N8.838bn; resulting in profit before tax of N9.951bn, as against the N8.634bn.
Profit after tax stood N9.932bn, up from N5.903bn; translating to Earnings Per Share of N2.33; as against the previous N1.53.
A breakdown of the numbers showed that the group’s food segment remained its honey pot, contributing N215.897bn or 60.8% of the gross revenue; compared to prior half-year’s N170.043bn, representing a marginal drop from 62.8%. The was followed by the agro-allied sector that contributed N72.057bn or 20.29% of total; as against the N49.398bn or 18.24% of the previous total; while the sugar segment recorded a total of N58.186bn or 16.38%, up from N44.942bn which represented 18.45% of total for the period.
PBT was however driven by the agro allied segment which contributed N6.31bn, compared to the previous N135.086m loss; followed by N5.612bn from food, up from N4.681bn. Sugar pooled N4.256bn PBT, up from N3.534bn; with support services suffering a N1.572bn loss, as against N553.574m