Flour Mills of Nigeria Plc, on Saturday published its audited financials for the year ended March 31, 2018, indicating that profit before and after tax grew significantly faster than sales revenue. The directors recommended a dividend of N4.10, up from N2.62bn, which however amounted to the same N1.00 dividend per share as that of prior year, from the earnings per share of N4.83; as against the previous N3.03 each.
Recall that during the period under review, the company obtained shareholders’ and regulatory approval to merge Golden Penny Rice Limited, which was effected during the year.
According to the result published by the Nigerian Stock Exchange (NSE), revenue for the period rose by N542.67bn, representing an increase of N18.206bn or 3.47%; from the N524.464bn reported in the corresponding period of 2017. A breakdown showed that sale of goods contributed the lion’s share of N541.279bn, up from N523.917bn, while rendering of services which added N1.391bn, up from N546.665m. Further analysis of the figure showed that the food segment accounted for N431.889bn, as against N422.709bn; followed by agro-allied segment which amounted to N90.683m from N80.514bn; while packaging added N18.705bn, down from N20.693bn. For provision of services, port operation and logistics yielded N1.201bn, three times more than the N414.439m; and real estate-rental income, N190.075m from N132.226bn.
Cost of sales was up N16.12bn or 3.52% from N457.775bn to N473.895bn, with cost of raw and packaging materials gulped N418.672bn up from N403.153bn; just as depreciation cost rose to N14.813bn from N12.1bn; fuel, gas and oil cost followed with N14.156bn, down from N18.581bn; just as production employee cost took up N13.229bn from N12.1bn. Factory repairs and maintenance grabbed N7.0bn from N4.958bn; as other production expenses rose to N3.345bn, compared to N1.339bn; following which gross profit limped to N68.775bn from N66.689bn.
Selling and distribution expenses climbed to N6.18bn from N5.341bn, swelled by N3.673bn selling expenses, slightly more than N3.268bn; employee costs of N1.834bn from N1.697bn; just as advertisement climbed N295.928m or 78.76% from N375.71m.
Administrative expenses increased marginally to N20.115bn from N18.419bn; boosted by Nr.649bn that went into salaries, wages and other staff costs, compared to N4.607bn; repairs and maintenance that rose by N921.546m, or 95.56% to N1.885bn from N964.296m; among others.
net operating gains stood at N5.943bn from a loss of N1.488bn; helped by the combination of sundry income of N1.518bn from N418.972m, N2.151bn government grants, compared to N885.956m; as well as gains on exchange differences of N1.238bn, compared with the N5.742bn loss in the corresponding period of 2017; among others. Operating profit therefore rose from N41.439bn to N48.422bn.
Investment income from short term investments and bank deposits fell by N745.985m or 91.34% to N816.319m, compared with the N1.562bn reported in the prior financial year; even as finance costs stood at N32.597bn, compared to the N32.529bn in 2017, being interest on bank loans and overdrafts od N35.697bn, up from N29.036bn. Fair value loss on derivatives dropped to N3bn, from N3.492bn; resulting in profit before tax of N16.541bn, representing in a N6.069bn or 57.95% increase when compared to the previous N10.472bn; while net income tax expenses increased by N1.289bn or 78.8% from N1.636bn in 2017, to N2.925bn. Profit fore the year climbed N4.779bn or 54.08% up at N13.615bn, compared to N8.836bn.
