…Declares N1.00 dividend in 2016
Despite the macro economy challenges in 2016, Flour Mills of Nigeria (FMN) Plc has announced an impressive growth in profit and loss figures with profit for the year increasing by 70 per cent.
The flour producing company shows that its Group profit after tax closed 2016 at N14.4 billion, 70 per cent higher than N8.4 billion recorded in 2015 financial year.
Also, profit before tax increased by 49 per cent from N7.7 billion in 2015 to N11.5 billion in 2016.
On the backdrop of increase in profitability, the management of Flour Mills of Nigeria has declared a N1.00 dividend in 2016 as against N2.10 per ordinary share of 50 kobo paid to shareholders in 2015.
This translates into a total of N2.62 billion dividend expected to be approved by the company’s shareholders at the forth coming Annual General Meeting from N5.5 billion that was declared in 2015.
The company explained that its cost of sales was impacted by higher cost of foreign currency due to foreign market deregulation resulting in closing blended exchange rate of N295 to $1 as against Central Bank of Nigeria (CBN) rate of N197.50.
Its Group Managing Director, Mr. Paul Gbededo, in a statement, said “I am pleased to report that in spite of the strong economic headwinds and tough business environment, development of the Naira and unrest in the North East, Flour Mills Group had an inspiring year wherein Gross Revenue grew by 11 per cent from its 2015 figures of N308 billion to reach N342 billion while group profit before tax increased by 49 per cent from N7.7 billion to N11.5 billion. Group profit after tax was N14.4 billion, 71.4 per cent higher than N8.4 billion of 2015 financial year.
“Cost of sales was impacted by higher cost of foreign currency due to foreign market deregulation resulting in closing blended exchange rate of N295 to $1 as against CBN rate of N197.50. The company was able to offset the impact of the foregoing on its bottom-line only by gradual increase in selling prices of its products.
“The strong improvement in revenue and profitability was primarily driven by volume growth and efficiency gains while benefits arising from the sale of investment in our associate company- UNICEM helped to improve the bottom line.
“The good news is that management is determined to further restructure our operations, streamline our business operations to focus on core businesses and consistently monitor and manage our costs optimally to hedge against further economic challenges which might evolve.
“It is also noteworthy that management is resolute in ensuring that sustainable returns and dividends from the Group’s agro allied investments are properly harnessed by maximizing local content in the Group’s products, bye-products and processes,” he said in its statement.
He assured shareholders of the management commitment at delivering superior shareholder value.
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