THIS MIGHT HELP YOU DECIDE WHERE NEXT TO PUT YOUR MONEY!!! Flour Mills Records N8.7bn Profit After Tax Flour Mills of Nigeria Plc has announced a profit after tax of N8.7bn in its results for the financial year ended March 31, 2012. The results made available to our correspondent on Tuesday showed that the company’s profit increased by 6.6 per cent compared to the figures obtained the previous year. The company also achieved an income of N225.6bn in the year under review, despite the cessation of its cement business, which accounted for about 17 per cent of its income the previous year. The Group Managing Director, Flour Mills, Mr. Paul Gbededo, was quoted in the statement as saying that the performance was recorded as a result of the activities in its core business, which is the food and agro-allied business. He said, “We are pleased to report a group revenue growth of 16.9 per cent, which is a remarkable performance considering the difficult business terrain. “Due to rising costs and increased spending on the company’s sale and distribution network, there was a slight decline in net profit for the group, which was down from N7.8bn in 2011 to N7.7bn in the year under review.” Gbededo reiterated the company’s future prospect, demonstrated by the fact that the directors proposed a 25 per cent increase in its dividend to N2.00 per share, as against 50 kobo recorded at the end of the previous year. He said, “We have expanded sale and distribution network to ensure better routes to market and wider distribution of our range of products through the restructured distribution channels down to the final consumer, and invested more in advertising to consolidate our position as the leading food and agro-allied company in Nigeria.” The company reported two strategic acquisitions during the year in furtherance of its long term business model. It acquired a controlling interest in Thai Farm International Limited, a leading cassava flour processing company, to secure its supply chain and ensure consistent supply of high quality cassava flour at affordable prices. Also, in the year under review, the company gained controlling interest in ROM Oil Mills Limited, a medium sized edible oil processing company, to broaden its product portfolio and strengthen group supply chain. The statement added that the business combinations, coupled with Flour Mills’ successful merger with two subsidiaries, Nigerian Bag Manufacturing Company Plc and Niger Mills Company Limited, would offer a tremendous opportunity to improve internal efficiencies, realise group synergies, reduce overheads and enhance shareholder value.
Posted on: Wed, 21 Aug 2013 14:55:32 +0000
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