Tag: Flour Mills

  • Tinubu’s policies attracting investors in maritime, says Flour Mills chair

    Tinubu’s policies attracting investors in maritime, says Flour Mills chair

    Chairman of Flour Mills Group, John Coumantaros, has lauded the investor-friendly policies of President Bola Tinubu’s administration, describing them as instrumental in attracting private sector investments into the maritime sector.

    Coumantaros made this remark during a discussion with the Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho.

     Their conversation focused on process improvement, increased investment in infrastructure, and the modernisation of Nigerian ports to secure a larger market share in global trade.

    Reaffirming the administration’s commitment to fostering a business-friendly environment, Coumantaros, emphasised the importance of continued infrastructure investment to enhance port efficiency.

    Dantsoho, in response, commended the Federal Government’s commitment to port rehabilitation, particularly highlighting the efforts of the Minister for Marine and Blue Economy, Adegboyega Oyetola.

    “Let me seize this opportunity to commend the Honourable Minister for Marine and Blue Economy, Adegboyega Oyetola, for securing FEC’s approval for the commencement of actual works for the reconstruction of Tin Can Island and rehabilitation of challenged aspects of Apapa Port Complexes,” Dantsoho stated.

    He further stressed that these positive developments, along with the Federal Government’s approval of the National Single Window (NSW) project, signal the country’s readiness to accommodate larger cargo carriers, which is crucial for economic growth.

    “These positive developments coinciding with the Federal Government’s approval of the National Single Window (NSW) project signpost Nigeria’s readiness to berth large cargo carriers commensurate with the size of Nigeria’s population,” he added.

    Read Also: Tinubu to polytechnics: focus on problem-solving, skills development

    Dantsoho’s visit was part of NPA’s ongoing efforts to ensure the seamless flow of traffic around the Apapa and Tin Can Island Port Complexes while reinforcing the truck call-up system. Speaking during the spot check, he underlined the agency’s commitment to continuous improvement.

    “Such unscheduled visits, which will be frequent, are motivated by our continuous improvement paradigm,” he said.

    He reiterated that resolving traffic congestion remains a top priority, promising direct oversight to ensure accountability.

    “Although I have tasked the Port Managers to urgently resolve the areas of concern raised by the trucking and freight forwarding community, I will continuously follow up directly to ensure compliance and measurable results,” Dantsoho assured.

    Highlighting the NPA’s strategic approach, he stressed the need for multimodal evacuation systems, including the use of barges and rail, to decongest the roads.

    “Traffic management efficiency is a deliverable that we take very seriously, which is why beyond optimising the electronic call-up (ETO), we are working assiduously towards multimodal means of evacuation through barges and the rail lines. Specifically, we will work with Nigeria Customs to relocate the scanner sited on the rail line link in Apapa to facilitate seamless evacuation,” he noted.

    Dantsoho further emphasiaed the necessity of maintaining an efficient and globally competitive port system.

    “The port access road is an international corridor, so we have zero tolerance for traffic clogs that cause congestion. The automated access gates must work, and we must shorten the SOPs to align with the necessity for quick transaction turnaround to remain competitive—first with our peers in the region and internationally,” he added.

  • Flour Mills revitalises Honeywell brand

    Flour Mills revitalises Honeywell brand

    Flour Mills of Nigeria Plc, a leader in the Nigerian food industry has re-launched its Honeywell brand all in its renewed commitment to meeting consumers’ needs.

    This milestone event, was held in Lagos, saw Honeywell unveil a a new identity featuring vibrant packaging and enhanced product quality.

    With a decades-long heritage, Honeywell has been synonymous with quality and trust. Its portfolio includes Noodles, Pasta (Macaroni and spaghetti), and staple bulk foods such as Semolina and Wheat.

    The Managing Director Food, Flour Mills of Nigeria (FMN), Devlin Hainsworth, said the re-launch signifies a bold step forward, combining tradition with innovation to cater to modern Nigerian families.

    The Honeywell brand, he said, offers improved quality noodles and pasta with strands of happiness, while the Honeywell Semo or Wheat, allows you to appreciate in every mouthful, the improved quality and grammage of pack sizes.

    He said: “This re-launch represents a strategic transformation for the Honeywell brand. We’ve reimagined our products to maintain the standards our consumers have come to expect and exceed them, delivering improved quality and an exceptional experience.”

    Read Also: Flour Mills revenue surges to N1.6b

    The new packaging celebrates Nigeria’s vibrant culture and the brand’s enduring legacy. With enhanced nutritional value and taste, the updated products promise to enrich the lives of families nationwide.

    FMN’s Marketing Director, Ilyas Kazeem, said: “Honeywell’s re-launch is more than just a visual upgrade; it’s a movement.

    “Through innovative marketing campaigns, in-store promotions, and digital outreach, we’re inviting Nigerians to rediscover the brand they love.”

    The campaign features exciting opportunities for consumers to engage with the brand, including online contests, giveaways, and on-ground activations.

  • Flour Mills’ majority shareholder gets approval to buy out minority shareholders

    Flour Mills’ majority shareholder gets approval to buy out minority shareholders

    Flour Mills of Nigeria Plc (FMN) majority shareholder has obtained all requisite regulatory approvals to propose a buy-out offer to minority shareholders.

    Disclosing this on Tuesday, FMN said that its majority shareholder has made an offer to buy out minority shareholders.

    The process, which is being conducted through a scheme of arrangement, has received a “No Objection” from the relevant regulators, namely the Nigerian Exchange Limited (NGX); the Securities and Exchange Commission of Nigeria (SEC).

    According to the company, the strategic move, which has been recommended by the Board of the company, offers the majority shareholder the flexibility to properly align the FMN entities according to their peculiarities, in addition to seeking, attracting and obtaining the necessary investment in line with the vision of each entity, with a focus on long-term growth and value. 

    It is also expected to lead to improved management efficiency and decision-making process, as it allows the company to operate with greater agility.

    It said: “Having notified the NGX and the SEC of the offer made by the majority shareholder to acquire the shares of all other shareholders; and resolution of the board to recommend the offer to shareholders for consideration and approval if deemed fit, an application shall now be filed before the Federal High Court to convene a shareholders’ meeting during which a resolution to buy out minority shareholders will be proposed and passed, if agreeable to the shareholders.

    “The resolution will be deemed approved if at least 75% of the members who are present and voting, either in person or by proxy, support the resolution during the Court Ordered Meeting (COM).”

    Group Managing Director, FMN, Commenting, Mr. Boye Olusanya stated, “In-line with FMN’s ambition to become the leading Pan African Food business that feeds and enriches lives of its consumers every day with quality brands, this move aligns with our strategy aimed at positioning the company to achieve its ten-year vision of building a company that is sustainable, resilient, dynamic and adaptable in its people, systems, and structures.”

  • Flour Mills earns N763. 2b revenue in first quarter

    Flour Mills earns N763. 2b revenue in first quarter

    Flour Mills of Nigeria Plc (FMN) has announced a growth of 67 per cent to N763.2 billion in the first quarter ended June 30, an improvement from N456.4 billion got same period last year.

     Gross profit rose 73 per cent to N86.9 billion, with 68 per cent hike in Operating Profit.

    Its profit for first quarter stood at N7.4 billion, reversing the first quarter loss in last year and returning to the levels of two and three years ago.

    Operating profit is N49.9 billion, backed by revenue growth and cost optimisation.

    With a cash position of N159 billion, the group can invest in growth opportunities and navigate economic uncertainties.

    Read Also: Tinubu committed to Nigeria that works for young people, says Speaker Abbas

    Boye Olusanya, group managing director and chief executive officer, said: “The results demonstrate FMN’s ability to deliver solid performance despite headwinds. We’ve shown agility in navigating challenging macroeconomic environment, including inflation and exchange rate volatilities. Our focus on cost optimisation, pricing, and operational efficiencies has kept us leading in food and agro-allied sector.”

    He said food and sugar segments witnessed top growth and returned to profitability in the first quarter with improvements, compared to last year.

    Also speaking, Anders Kristiansson, group chief Finance officer, said: “The results reflect our commitment to creating value for shareholders. The strengthening of our profitability, coupled with our cash position, provides us with the flexibility to invest in growth opportunities and navigate  uncertainties. We remain focused on optimising our capital structure and reducing funding costs to improve profitability and deliver value.,..”

  • Flour Mills declares N7.4b dividend

    Flour Mills declares N7.4b dividend

    The board of directors of Flour Mills of Nigeria (FMN) Plc has recommended payment of N7.38 billion to shareholders as the food and agro-allied company recorded net profit of N3.54 billion.

    In a regulatory filing at the Nigerian Exchange (NGX) yesterday, Flour Mills indicated that shareholders will receive a dividend per share of N1.80 for the year ended March 31, 2024, 20 per cent drop from N2.25 paid for the 2023 business year. The company had distributed N9.23 billion for the 2023 business year.

    The audited report and accounts of FMN for the year ended March 31, 2024 showed that turnover rose by 49 per cent to N2.3 trillion in 2024 as against N1.5 trillion recorded in the previous year. The company’s net profit however dropped by 88 per cent from N29.50 billion in 2023 to N3.54 billion. The bottom-line in 2024 was largely boosted by income tax credit. Basic earnings per share thus dropped from N7.25 in 2023 to N6 in 2024, a decline of 99 per cent.

    The group’s top-line performance was underpinned by strong revenue growth across all business segments, including food, agro-allied, sugar, and support services. The food segment, recorded a 51 per cent increase in revenue, driven by new product launches and category flavour extensions.

    The agro-allied segment also witnessed growth, with revenue increasing by 17 per cent and profit before tax rising by four per cent. The segment’s success was driven by larger export volumes, moderate price adjustments, and the introduction of new products in the fertilizer business.

    Group Managing Director, Flour Mills of Nigeria (FMN) Plc, Boye Olusanya, said the group’s consistent execution and growth underscored financial and operational resilience.

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    According to him, despite the challenging economic environment, the company has solidified its position as a market leader in the food and agro-allied sector, driven by innovative product offerings and efficient operations.

    Group Chief Finance Officer, Flour Mills of Nigeria (FMN) Plc, Anders Kristiansson said the company drove more efficiencies across the group as it continues delivering value in line with its long-term strategic plan.

    “It is based on this mandate that the board also approved 180 kobo dividends for our shareholders, a decision driven by our value delivery mandate. Our solid cash generation and reduction of net debt provides the flexibility to navigate economic uncertainties and invest in growth opportunities,” Kristiansson said.

    Kristiansson said FMN remains committed to its strategic priorities, including local content integration, production line expansions, and a strong innovation pipeline.

    The group noted that its robust financial position and diversified business model positions it well to capitalize on emerging opportunities and drive sustainable growth.

  • Flour Mills: Distributors, partners vital to our business

    Flour Mills: Distributors, partners vital to our business

    Flour Mills of Nigeria (FMN) has identified its distributors and customers as pillars of its business success story.

    Its Head of Commercial B2B, John Maniatis, who spoke in Marriott Hotel in Ikeja, Lagos where the company held its B2B Sales Customers Forum, said:  “FMN’s success is built on the tremendous efforts of our distribution partners and commercial customers. The B2B Sales Customers Forum allows us to express our sincere gratitude while reinforcing our shared mission to nourish Nigeria through innovative food solutions. Our annual B2B Sales Customers Forum is a highlight for connecting with the bakers, dealers, and partners who are pivotal to our success.

    Read Also: Tinubu appoints Alabo George as BCDA DG

    The Group hosted a series of events for top customers/business partners across five cities – Delta, Akwa Ibom, Abuja, Ibadan, and Lagos. Through the Forum, FMN recognized and rewarded high-performing dealers, business partners, direct-buying bakers, and corporate buyers.

    The multi-city tour culminated with the final event held on March 12, 2024, at the Marriott Hotel in Ikeja, Lagos. Hundreds of valued customers attended to network, engage with FMN leadership, and discuss the company’s products and services.

    “Our annual B2B Sales Customers Forum is a highlight for connecting with the bakers, dealers, and partners who are pivotal to our success,” said John Maniatis, Head of Commercial B2B at FMN. “This year’s events provided an excellent platform to honor our top performers, strengthen relationships, and gather insights to better serve our customers in the year ahead.”

    In addition to networking opportunities, attendees gained insights into FMN’s strategic plans for customer and economic growth. Top customers were recognized across multiple categories for their outstanding sales performance and commitment to the company’s brands.

    “FMN’s success is built on the tremendous efforts of our distribution partners and commercial customers,” added Maniatis. “The B2B Sales Customers Forum allows us to express our sincere gratitude while reinforcing our shared mission to nourish Nigeria through innovative food solutions.”

    The annual forum reinforces FMN’s positioning as Nigeria’s leading food and agro-allied Group

  • Flour Mills offsets N51bn commercial loan

    Flour Mills offsets N51bn commercial loan

    Flour Mills of Nigeria Plc (FMN), one of the leading Nigerian food and agro-allied company, has announced the successful repayment of the sum of N51.64 billion Series 2 Commercial Paper.

    This repayment followed the timely completion of N13.33 billion Series 1 repayment on the 22nd of August 2023.

    According to a statement issued by the NGX, the outcome the FMN demonstrates strong reputation for timely repayment in Debt Capital Market.

    FMN, the statement noted, has consistently demonstrated a strong reputation for timely repayment in the Debt Capital Market.

    The Series 1 CP and Series 2 CP, totaling N64.97 billion, were initially issued on February 22, 2023, as part of the N200 billion Commercial Paper Programme registered by FMN earlier that month.On the 10th of February 2023, FMN initiated its N200 billion Commercial Paper Programme, which included the launch of Series 1 and Series 2 on the 22nd of February.

    Read Also: Alleged debt recovery: Court grants bank leave to join bizman, Flour Mills

    The Series 1, with a yield of 13.0%, raised N13.33 billion, while the Series 2, with a yield of 14.0%, raised N51.64 billion.

    Following the success of Series 1 and 2, FMN made a strategic decision to tap into the market for its Series 3 Commercial Paper in June 2023, with subscriptions from banks and Pension Fund Administrators contributing 39.7% and 40.8% respectively.

    The transaction was efficiently managed by FBNQuest Merchant Bank Limited as the Lead Arranger, with ChapelHill Denham Advisory Limited, FCMB Capital Limited, and United Capital PLC serving as Joint Arrangers.

    While commenting on the successful repayment, Mr. Anders Kristiansson, Group Chief Finance Officer, FMN, stated, “We are pleased to announce the timely and successful repayment of our Series 2 Commercial Paper. This accomplishment reflects FMN’s commitment to financial prudence and the confidence reposed in our organisation by the investing public. We express our gratitude to our stakeholders for their continued support, and we remain steadfast in our commitment to delivering sustainable value and maintaining the highest standards of corporate governance.

    “The success of FMN’s Commercial Paper Programmes underscores the company’s strong financial standing and the trust it commands in the market. FMN remains committed to leveraging the Debt Capital Market to meet its working capital requirements.”

    Incorporated in September 1960 and quoted on the Nigerian Stock Exchange since 1978, Flour Mills of Nigeria (FMN) Plc, owners of the iconic Golden Penny Food brand is one of Nigeria’s leading food and agro-allied companies, also cover a broad basket of food products and robust pan-Nigerian production, distribution, and supply chain network, FMN is a fully integrated and diversified food and agro-allied group.

    FMN group strives in its purpose to “Feed the Nation, Everyday” through its five core food value chains: Grains, Sweeteners, Oils and Fats, Proteins, and Starches.

    FMN creates value along the entire food chain with its “farm-to-table” model by providing inputs and know-how to farmers, aggregating and sourcing crops and raw materials to supply its world-class processing facilities across Nigeria, and distributing its innovative food brands to its customers.

  • Flour Mills’ net profit drops by 71% to N4b

    Flour Mills of Nigeria Plc witnessed contractions in sales and profitability in the immediate past business year, as net profit declined by 70.6 per cent from N13.6 billion in 2018 to N4 billion in 2018.

    Key extracts of the audited report and accounts of the company for the year ended March 31, 2019 showed that trunover dropped by 2.8 per cent from N542.67 billion in 2018 to N527.40 billion in 2019. Gross profit dropped by 22.4 per cent from N68.8 billion in 2018 to N53.3 b illion in 2019. Profit before tax declined by 38.5 per cent to N10.17 billion in 2019 as against N16.54 billion in 2018. After taxes, net profit dropped by 70.6 per cent to N4 billion in 2019 as against N13.6 billion in 2018. Consequently, earnings per share dropped from N4.83 in 2018 to N1 in 2019.

    The board of directors of the food group has, however, recommended increase in dividend payout by 20 per cent, opting to dip into the group’s retained earnings to support the increase. Shareholders will receive a dividend per share of N1.20 for the 2019 business year as against N1 paid for the 2018 business year.

    Further analysis showed a decline in the underlying profitability of the group. Gross profit margin dropped from 12.7 per cent in 2018 to 10.1 per cent in 2019. Net profit margin dipped to 0.8 per cent in 2019 as against 2.5 per cent in 2018. However, the group’s debt-to-equity ratio improved from 101.7 per cent in 2018 to 84.1 per cent in 2019. Also, Flour Mills’ net asset per share stood at N36.80, almost a triple of its current market valuation.

    In a statement, the group expressed optimism that it will witness continuous growth in key segments of its food and agro-allied businesses in the new business year, noting that targeted strategies are expected to deliver improved margins and operational efficiencies.

    According to the company, continuous implementation of turnaround initiatives in the agro-allied business, accelerated expansion in the business-to-customer segment, optimal operation of its supply chain and further balance sheet management are expected to result in higher profitability.

    The group noted that it undertook series of strategic actions designed to improve returns and deliver maximum gains for its investors in 2018 including the restructuring process that saw all its businesses in the agriculture sector aligned under its wholly owned holding company, Golden Fertiliser Company.

    The company pointed out that the consolidation of its agricultural businesses has started yielding appreciable contributions to the group in the areas of cost maximisation and improved operational efficiency as the businesses make the most of their competitive advantage and synergies.

    The management of the company stated that strong cost control measures put in place during the year supported the company despite the prevailing economic headwinds and harsh operating environment, especially for businesses in the congested Apapa, Lagos axis.

    According to the company, it has continued to consolidate its investments in the agriculture sector with a strong focus on innovative and efficient use of resources. As such, the group is resizing and simplifying the operations of some of the farms which form an integral part of its backward integration strategy with a few of the smaller experimental farms being scaled down, while continuing focus on key units.

    Group Managing Director, Flour Mills of Nigeria Plc, Paul Gbededo, said the group has made substantial progress as growth and efficiency initiatives across various functions and businesses started to show anticipated gains.

    According to him, Flour Mills has undergone several functional and structural changes within the last year, with innovation and focus on customer at the heart of the group’s strategic direction.

    “We are positive that we will see even greater achievements in our financials in the following quarters as we continue to focus on value creation for our shareholders,” Gbededo said.

    Group Chief Finance Officer, Flour Mills of Nigeria Plc, Anders Kristiansson, noted that the group’s strategy to restructure its balance sheet base and optimise financing costs have started to yield desired results.

    He pointed out that in spite of ongoing pressures on consumer disposable income in many target categories; the group has continued to deliver stronger performance.

  • Flour Mills, Mixta Real Estate float N15b CPs

    Flour Mills of Nigeria Plc and Mixta Real Estate Plc have opened application lists to raise about N15 billion in new short-term capital through the issuance of commercial papers (CPs).

    Flour Mills of Nigeria, is seeking to raise up to N12 billion in the eigth series of its N100 billion CP programme. The flour-milling company will use the net proceeds to support its short-term funding.

    Flour Mills of Nigeria is offering 270-day CP with effective yield of 13.10 per cent and a discount rate of 11.9427 per cent. Application list for the offer closes tomorrow. Minimum subscription is N5 million and thereafter in multiples of N1,000. The CPs will be issued on Thursday May 30, 2019.

    Mixta Real Estate, a subsidiary of Mixta Africa, is seeking to raise N3 billion in the sixth and seventh series of its N15 billion CP issuance programme. The real estate firm will use the proceeds to also fund its short-term capital requirements.

    The sixth series CP is a 180-day instrument with effective and discount yield of 14.67 per cent and 13.6803 per cent respectively. The seventh series CP is a longer tenor 266-day CP with effective and discount yield of 15.36 per cent and 13.8137 per cent respectively.

    Mixta’s offers opened on May 23, 2019 and are scheduled to close today, Monday May 27, 2019. The CPs will be allotted tomorrow while issuance will be done on May 30, 2019. Minimum subscription is N5 million and thereafter in multiples of N1,000.

    Mixta commenced operations in February 2006 as a real estate investment fund management company promoted by Asset & Resource Management Company (ARM) Limited. In 2007, the fund was converted to a property company, ARM Properties Plc, as a result of operational and tax limitations encountered due to current legislation governing real estate investment funds in Nigeria.

    In 2015, ARM acquired Mixta Africa, an Africa-focused large scale property development company headquartered in Spain with subsidiary operations in several countries across North and sub-Saharan Africa. The combination of ARM Properties and Mixta Africa gave birth to Mixta Real Estate Plc.

  • Flour Mills unfolds plan after low Q2

    After a decline in performance in the first half, Flour Mills of Nigeria has outlined plan to improve its performance.

    The company’s interim report and accounts for the six-month period ended September 30, 2018 showed that group turnover dropped from N298.44 billion in September 2017 to N269.74 billion in September 2018.

    Gross profit declined from N35.51 billion to N32.12 billion. Operating profit dropped to N19.24 billion as against N29.47 billion in corresponding period of last year.

    Profit before tax dropped from N13.48 billion to N8.30 billion. Profit after tax dipped to N5.07 billion in 2018 as against N9.36 billion in 2017. Earnings per share reduced from N3.17 to N1.25.

    The latest results contrasted  with the improved performance recorded in the last audited report of the flour-milling gaint.

    Flour Mills had grown its net profit by 54 per cent to N13.6 billion in the past year, riding on the back of strong sales and improved cost management.

    Key extracts of the audited report and accounts of Flour Mills of Nigeria for the year ended March 31, 2018 had shown that profit after tax rose from N8.84 billion in 2017 to N13.62 billion in 2018. Profit before tax had risen from N10.47 billion to N16.54 billion. Group turnover increased from N524.46 billion in 2017 to N542.67 billion in 2018. Earnings per share thus improved from N3.03 in 2017 to N4.83 in 2018. The company paid a dividend per share of N1 to shareholders as cash dividend for the 2018 business year, the same amount distributed for the 2017 business year.

    Flour Mills of Nigeria Group Managing Director Mr. Paul Gbededo said the company was focusing on growing its turnover and market share as well as diversifing its products to boost performance.

    “More recently, our focus is on volume growth, market share and diversification of existing product lines whilst improving efficiencies in supply chain and manufacturing sites. Optimisation of our balance sheet and reduction of financing costs remains a priority,” Gbedebo said.

    According to him, the bond issues by the company was part of strategy to replace short term bank loans with longer-tenored, lower priced funding.

    He said the bond issue would help the company to achieve its strategic objective of sustaining its market leadership position.

    He pointed out that the group’s backward integration programmes, which started in 2012, through its agro-allied business initiatives, were primarily aimed to support the group’s core food business.

    He noted that with five decades of operations in Nigeria, Flour Mills has continued to pursue strategic business opportunities, such as capacity expansion to sustain a leading position as Nigeria’s largest and oldest integrated food business, with a broad product portfolio and a robust pan-Nigerian distribution network.

    Flour Mills was incorporated September 29, 1960 as a private limited liability company. It became a public limited liability company in 1978.