‘Adaptation to changing market dynamics aided growth’

At a time when many firms are reeling from the impact of the coronavirus pandemic, Flour Mills of Nigeria Plc has stated that its sustained profitability is driven by commitment to consumers and ability of the firm to adapt to changing market dynamics.

According to the firm, its Q3 2020/21 results showed remarkable double-digit growth across all key segments, contributing to National efforts at sustaining economic stability.

Commenting on the result, FMN’s Group Managing Director, Boye Olusanya, said: “Our ability to stay resilient, while growing organically in a rapidly changing environment, validates our investment strategy, and the strength of our diversified portfolio.

“We are keeping in stride with the government’s vision to ensure food sufficiency and have delivered another truly remarkable result this year. Our priorities remain the same; feeding growth and productivity in Nigeria’s food and agro-allied sector, feeding communities with empowerment, and feeding Nigeria’s future with significant backward integration projects”.

The firm added that its businesses in the agro-allied sector continued to show impressive growth in line with projections as programs to improve farmer’s engagements in areas like seed production and out-grower schemes recorded impressive gains.

“In the food segments, our volume-driven growth strategy remained underpinned by the resilience of our portfolio, and the agility of our teams to adapt to the changing market dynamics. To broaden our reach, we have continued to invest in innovation, by developing new products and strengthening our route to market”, it added.

Indeed, the FMN Group sustained its drive to feed growth and productivity in Nigeria’s food and agro-allied sector in Q3 2020/21 with a revenue of N200.2 billion, compared to N152.7 billion in Q3 2019/20 (31% – YoY growth).

For the nine months ended 31st December 2020, Group revenue was N555.3 billion representing a 31% increase compared to the same period the previous year. Growth was supported by a sustained momentum and investments in the Group’s Agro-allied operations.

Similarly, profit before tax was N9 billion up from N3.7 billion (146% – YoY growth) and by 92% to N23.6 billion YTD, while Profit After Tax was N5.6 billion up from N2.3 billion (150% – YoY growth) and by 91% to N15.6 billion YTD.