Highlights of Flour Mills of Nigeria 2017 Audited Financial Statement



2016/17 financial year was remarkable for its overwhelming macroeconomic challenges for the Nigerian manufacturing industry, a fallout of some global political and economic developments leading to foreign exchange volatility, business uncertainties and a significant weakening of the Naira which impacted our business in a negative way.

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In spite of the formidable challenges and the unfavorable operating environment, we were able to achieve a solid performance, thanks to our resilience and managerial capabilities.


FMN Group achieved an increase in turnover which rose by an impressive 53% to N524billion. The growth was driven by a combination of volume increase, enhanced operational efficiencies coupled with commensurate increases in prices of our products. However, the Group’s financial performance was adversely affected by the impact of over 40% devaluation of the Naira together with the uncertainties associated with persistent foreign exchange scarcity and sharp fluctuations in rates which we have been able to successfully hedge. Despite those external financial issues, the Group posted an After Tax Profit of N8.8billion, a substantial improvement over the previous year.


It is important to point out that compared with the last two financial years and put in proper perspective, the performance was very impressive. In 2014/15 the Group recorded an operational loss of N6.2billion only made good by the profit on sale of 50% of our equity in UNICEM amounting to N13.9billion which ensured a final profit before tax of N7.7biltion. In 2015/16 the Group also returned an operational loss of N12.7billion but with sale of investment gain of N23.7billion of the remaining 50%  of our equity in UNICEM giving a profit Before Tax of N11.5billion.


Our company was able to navigate through the difficult waters leveraging on the Strength and quality of our brand- ‘Golden Penny’. The company achieved a remarkable growth in Revenue but due to the aforementioned unfavorable external factors and conditions,


it recorded a marginal decrease in the bottom line. Revenue grew by 51% from N248b1llion to N375billion. After adjusting for the full Impact of the exceptional foreign exchange loss of N6billion, the company posted an After Tax Profit of N9.8billion compared with N10.4billion recorded last year.


Despite the challenges encountered, our directors will be proposing to our shareholders at the forthcoming Annual  General  Meeting, the declaration of a total of N2.62 billion representing Dividend payment of N1.00 per ordinary share of 50 kobo each consistent with payment made in 2016. This  is  in line with our resolve to maintain consistency  in annual payment of dividends to our esteemed shareholders.


During the year, FMN through substantial investment In its Agro Allied businesses, continued its evolution from being primarily a food processing company to a fully integrated consumer foods business supported by a strong Internal agro-allied supply chain in the following food value chains – Oils and fats, Sweeteners, Feeds and Proteins, Starches and Agro distribution.


We believe that this is the most viable and sustainable thing to do to safeguard our future and ensure the sustainability of our business. The emerging macro-economic environment and government initiatives have necessitated a strong “local” Input and output drive and FMN is determined to be a part and major contributor to the Government’s backward Integration policy.


As  we strive to further restructure our operations, streamline our business operations to focus on core businesses, constantly monitor and manage our costs optimally, improve and re-engineer our existing product range, we will focus on innovation and develop new strategies for the market making our products more visible and available at points of sale while we continue to improve our sales, merchandising, redistribution personnel and activities, all geared  at maintaining  our  promises  in  delivering sustainable gains to  all stakeholders. Proshare.