Flour Mills Nets N13.27bn 9-Month Profit, Laments Impact Of Apapa Grid-lock

The board of Flour Mills of Nigeria Plc, on Wednesday presented its unaudited 9-month result, showing a double-digit growth in profit, despite the 9.63% rise in sales revenue for the period ended December 31, 2017.
The company explained that the performance, though strong, could have been better if not for “the current business challenges, especially due to Apapa (Lagos) traffic congestion.”
The company’s food business pooled N271.954bn, up from N241.472bn; followed by packaging valued at N17.349bn from N15.216bn; ahead of N13.339bn from agro allied business, down from N20.695bn in the previous nine-month’s.
Sales turnover climbed by N37.565bn to N427.508bn from N389.943bn in the corresponding period of 2016; cost of sales increased to N371.472bn, up by 10.4% from N336.449bn; resulting in gross profits of N56.036bn, up from the previous N53.495bn.
Selling and distribution expenses dropped slightly to N4.037bn from N4.241bn; administrative expenses rose to N13.311bn from N10.234bn; net operating gains stood at N5.507bn, as against the N11.756bn losses; leaving operating profit at N44.194bn from N27.264bn.
Investment income dropped to N465.22m from N726.293m; finance costs jumped to N25.157bn from N17.696bn, representing N7.641bn or 42.16%; while profit before tax stood at N19.502bn from N10.293bn. Profit after tax N13.247bn increased by N5.854bn or 79.19% from N7.4bn, despite the significant N3.362bn or 116.23% increase in tax expense. Earnings Per Share rose to 456 kobo, from 250 kobo each.