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Tag: Flour Mills

  • Flour Mills lists N20.11b bonds on NSE, FMDQ

    Flour Mills of Nigeria Plc, Nigeria’s largest flour-milling company, at the weekend listed two bonds on the Nigerian Stock Exchange (NSE) and the FMDQ OTC Securities Exchange.

    Flour Mills’ N10.11 billion, three-year, 15.50 per cent fixed rate senior unsecured bond due 2021 and N10 billion five-year, 16 per cent fixed rate senior unsecured bond due 2023 were admitted to the NSE and FMDQ. The bonds were issued under the company’s N70 billion bond issuance programme.

    The bond issues were strongly supported by the institutional investors and oversubscribed by 190 per cent within the price guidance. The proceeds of both issuances were used entirely to refinance existing debt obligations of the company and streamline its maturity profile.

    Commenting on the listing, Chairman, Flour Mills of Nigeria, Mr John Coumantaros said the company was delighted to return to the capital markets with such a successful outing especially with the level of interest shown by investors.

    According to him, the response from the market vindicates the company’s decision to have taken this additional step in diversifying its financing options.

    “We are very pleased to have worked with our advisors, Stanbic IBTC Capital Limited (“Stanbic BTC Capital”)as Lead Issuing House, along with ARM Securities Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, United Capital PLC and Zenith Capital Limited as Joint-Issuing Houses, on a highly successful transaction,” Coumantaros said.

    Group Managing Director, Flour Mills of Nigeria, Mr. Paul Gbededo, said the issues would help the company to achieve its strategic objective of sustaining its market leadership position with its foods and agro-allied businesses, while fostering its vision of feeding the nation everyday.

  • Flour Mills grows net profit by 54% to N13.6b

    •Firm declares N4.1b dividend

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

    Key extracts of the audited report and accounts of the company for the year ended March 31, 2018 showed 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 board of directors of the company has recommended payment of 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 during the last quarter of the business year raised N40 billion in new equity funds through a rights issue. It floated a rights issue of 1.476 billion ordinary shares of 50 kobo each at N27 per share.

    The success of the new capital raising had placed the flour mill group in a better position to strengthen its balance sheet and support business growth.

    Its Chairman, Mr. John Coumantaros, had said the rights issue would be used primarily to pay down some of the company’s outstanding short-term debt in order to reduce its finance costs, which have increased significantly in recent times.

    He said the company would maintain and expand its market leadership across all its five core businesses and value chains.

    He outlined that Flour Mills would improve route, extend its distribution footprint and launch new innovative consumer products like Gari, Margarine, spread, soya and vegetable oil, among others.

    He added that the company will continue to focus on supply chain security through import substitution and value chain diversification.

    “We will also continue to improve in our processing facilities and manufacturing excellence, which will lead to productivity and efficiency gains,” Coumantaros said.

    Group Managing Director, Flour Mills of Nigeria Plc, Mr. Paul Gbedebo, explained that the rights issue is part of the group’s strategy to grow and build long-term value for all stakeholders.

    “The proceeds from the rights issue will be used to strengthen the company’s capital base by deleveraging our balance sheet, supporting our working capital needs and positioning the company to exploit value-accretive opportunities, while giving greater operational and financial flexibility to ensure business growth and continuity,” Gbedebo said.

    He noted that Flour Mills has a long and rich history in Nigeria and continues to evolve and become the leading food and agro-allied group in Africa.

    According to him, Flour Mills’ commitment to sustainability as a corporate strategy is shown in different levels of its operations and activities, while the company’s customer-centric culture remains focused on both product and process innovation aimed at building value for all stakeholders.

  • Flour Mills concludes N39.9b capital raising

    Flour Mills of Nigeria Plc recorded full subscription to its recent N39.9 billion rights issue, increasing the equity base of Nigeria’s largest flour-milling conglomerate.

    Regulatory report at the Nigerian Stock Exchange (NSE) at the weekend indicated that a total of 1.476 billion ordinary shares of 50 kobo each were listed as additional shares in Flour Mills of Nigeria’s name. The additional shares arose from the N39.9 billion rights issue.

    Flour Mills of Nigeria had sought to raise N39.85 billion through a rights issue of 1.476 billion ordinary shares of 50 kobo each at N27 per share. The rights were pre-allotted to shareholders on the basis of nine new ordinary shares of 50 kobo each for every 16 ordinary shares of 50 kobo each held as at Friday December 8, 2017. Application list for the rights opened on Monday January 15, 2018 and closed on Wednesday February 21, 2018.

    With the supplementary listing, the total issued and fully paid up shares of Flour Mills of Nigeria now stands at 4.10 billion ordinary shares of 50 kobo each. The listing paved the way for trading on the supplementary shares.

    The success of the new capital raising placed the flour-milling group in a better position to strengthen its balance sheet and support business growth.

    Its Chairman, Mr. John Coumantaros, had said the rights issue would be used primarily to pay down some of the company’s outstanding short-term debt in order to reduce its finance costs, which have increased significantly in recent times.

    He said the company will maintain and expand its market leadership across all its five core businesses and value chains.

    He outlined that Flour Mills will improve route and extend its distribution footprint and launch new innovative consumer products like Gari, Margarine, spread, soya and vegetable oil, among others.

    The company, he added, will continue to focus on supply chain security through import substitution and value chain diversification. “We will also continue to improve in our processing facilities and manufacturing excellence, which will lead to productivity and efficiency gains,” Coumantaros said.

    Flour Mills of Nigeria Group Managing Director, Mr. Paul Gbedebo, explained that the rights issue was part of the group’s strategy to grow and build long-term value for all stakeholders.

    “The proceeds from the rights issue will be used to strengthen the company’s capital base by deleveraging our balance sheet, supporting our working capital needs and positioning the company to exploit value-accretive opportunities, whilst giving greater operational and financial flexibility to ensure business growth and continuity,” Gbedebo said.

    He noted that Flour Mills has a long and rich history in Nigeria and continues to evolve into becoming the leading food and agro-allied group in Africa.

     

    According to him, Flour Mills’ commitment to sustainability as a corporate strategy is shown in different levels of its operations and activities, while the company’s customer-centric culture remains focused on both product and process innovation aimed at building value for all stakeholders.

     

  • Flour Mills opens application for N39.9b rights issue

    Flour Mills of Nigeria Plc will today open application list for its N39.9 billion rights issue, paving the way for shareholders to pick up their rights, or trade such rights at the stock market.

    Flour Mills of Nigeria will be raising N39.85 billion through a rights issue of 1.476 billion ordinary shares of 50 kobo each at N27 per share. The rights have been pre-allotted to shareholders on the basis of nine new ordinary shares of 50 kobo each for every 16 ordinary shares of 50 kobo each held as at Friday December 8, 2017. Application list for the rights opens today and will run till the close of business on Wednesday February 21, 2018.

    Group Managing Director, Flour Mills of Nigeria Plc, Mr. Paul Gbedebo, said the rights issue will enable the company to raise funds to support its long-term strategic plan with a view to ensuring sustainable growth for the company.

    “The rights issue is part of our strategy to grow and build long-term value for all stakeholders. The proceeds from the rights issue will be used to strengthen the company’s capital base by deleveraging our balance sheet, supporting our working capital needs and positioning the company to exploit value-accretive opportunities, whilst giving greater operational and financial flexibility to ensure business growth and continuity,” Gbedebo said.

    He noted that Flour Mills has a long and rich history in Nigeria and continues to evolve into becoming the leading food and agro-allied group in Africa.

    According to him, Flour Mills’ commitment to sustainability as a corporate strategy is shown in different levels of its operations and activities, while the company’s customer-centric culture remains focused on both product and process innovation aimed at building value for all stakeholders.

    Chairman, Flour Mills of Nigeria (FMN) Plc, Mr. John Coumantaros, in a recent review, noted that though the operating environment has been tough and challenging, the group can look to the future with confidence that its prospects are promising and bright while the fundamentals are strong.

    According to him, the group sees opportunities in the challenges and it is determined to explore them in the most profitable but sustainable manner.

    “FMN is determined to continue to feed the nation every day. We shall keep maintaining our wide portfolio of high quality consumer food options and step up our input of locally sourced raw materials thereby supporting the livelihood of Nigerian farmers and Nigerian businesses,” Coumantaros said.

  • Flour Mills to open application for N39.9b rights issue

    Flour Mills of Nigeria Plc has rounded off pre-offer processes and signed off documentation for its N39.9 billion rights issue, setting the stage for the opening of the application list for the new capital raising.

    At the signing ceremony, which rounded off the pre-offer processes and documentations at the weekend, Flour Mills of Nigeria Plc Group Managing Director,  Mr. Paul Gbedebo, confirmed that the company has received regulatory approvals from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) and is ready to proceed with the rights issue.

    He said the rights issue will enable the company raise funds to support its long-term strategic plan with a view to ensuring sustainable growth for the company.

    The company plans to raise N39.85 billion through a rights issue of 1.476 billion ordinary shares of 50 kobo each at N27 per share. The rights will be pre-allotted to shareholders on the basis of nine new ordinary shares of 50 kobo each for every 16 ordinary shares of 50 kobo each held as at Friday December 8, 2017.

    Shareholders had at an extraordinary general meeting in 2015 authorised the directors to raise up to N40 billion of additional equity funds through a rights issue.

    “The rights issue is part of our strategy to grow and build long-term value for all stakeholders. The proceeds from the rights issue will be used to strengthen the company’s capital base by deleveraging our balance sheet, supporting our working capital needs and positioning the company to exploit value-accretive opportunities, while giving greater operational and financial flexibility to ensure business growth and continuity,” Gbedebo said.

    He noted that Flour Mills has a long and rich history in Nigeria and continues to evolve into becoming the leading food and agro-allied group in Africa.

    According to him, Flour Mills’ commitment to sustainability as a corporate strategy is shown in different levels of its operations and activities, while the company’s customer-centric culture remains focused on both product and process innovation aimed at building value for all stakeholders.

    In a statement at the weekend, its Company Secretary, Umolu Joseph, said the full terms of the rights issue will be set out in a rights circular to be mailed directly to shareholders of the company, which contains a provisional allotment letter and participation form.

    Chairman, Flour Mills of Nigeria (FMN) Plc, Mr. John Coumantaros, in a recent review, noted that though the operating environment has been tough and challenging, the group can look to the future with confidence that its prospects are promising and bright while the fundamentals are strong.

    According to him, the group sees opportunities in the challenges and  is determined to explore them in the most profitable but sustainable manner.

    “FMN is determined to continue to feed the nation every day. We shall keep maintaining our wide portfolio of high quality consumer food options and step up our input of locally sourced raw materials, thereby supporting the livelihood of Nigerian farmers and Nigerian businesses,” Coumantaros said.

    He added that the group would continue to invest in growing portfolio of localised products in support of the nation’s economy.

    He outlined that as the group strives to further restructure its operations, streamline business operations to focus on core businesses, constantly monitor and manage costs optimally, improve and re-engineer existing product range, the group will focus on innovation and develop new strategies for the market by making its products more visible and available at points of sale.

    “We shall also continue to improve our sales, merchandising, redistribution personnel and activities,” Coumantaros said.

    He reiterated the support of the group for the Federal Government’s backward integration policy, assuring that the group is determined to ensure that its agro-allied strategy provides sustainable returns on capital invested by maximising local content in group products.

    He noted that in furtherance of the group’s vision to be involved at all stages of food value chain- from the farm to table, raw materials are being produced locally to ensure that good quality but fair value products are developed locally through the food supply chain to final consumer consumption.

    “By our policy of aggregating grains and local farm products, we are creating jobs and boosting rural economy. We are determined to continue to ensure that our investments and processes aside from ensuring value for shareholders and other stakeholders continue to enrich the lives of our consumers, farmers, suppliers and other relevant stakeholders,” Coumantaros said.

    He pointed out that by investing in the nation’s agricultural food-chain, the group is safeguarding its future and ensuring the sustainability of its businesses, noting that the backward integration programme is the most viable and sustainable thing to do.

  • Flour Mills to raise N39.9b new capital from shareholders

    Flour Mills to raise N39.9b new capital from shareholders

    Flour Mills of Nigeria Plc at the weekend submitted formal application to the Nigerian Stock Exchange (NSE), seeking to raise N39.9 billion in new equity funds from existing shareholders.

    A regulatory filing at the NSE at the weekend indicated that Flour Mills of Nigeria plans to raise N39.85 billion through a rights issue of 1.476 billion ordinary shares of 50 kobo each at N27 per share. The rights will be pre-allotted to shareholders on the basis of nine new ordinary shares of 50 kobo each for every 16 ordinary shares of 50 kobo each held as at Friday December 8, 2017.

    Chairman, Flour Mills of Nigeria (FMN) Plc, Mr. John Coumantaros, had earlier confirmed the approval of the new fund raising by the Securities and Exchange Commission (SEC).

    Shareholders had at an extraordinary general meeting in 2015 authorised the directors to raise up to N40 billion of additional equity funds through a rights issue.

    Coumantaros said the board of directors will watch the capital market condition to determine the appropriate time to launch the first tranche of the new supplementary issue. The sustained rally at the stock market might have encouraged the board of Flour Mills of Nigeria to launch the rights issue.

    Reviewing the operations and outlook of the group recently, Coumantaros noted that though the operating environment has been tough and challenging, the group can look to the future with confidence that its prospects are promising and bright while the fundamentals are strong.

    According to him, the group sees opportunities in the challenges and it is determined to explore them in the most profitable but sustainable manner.

    “FMN is determined to continue to feed the nation every day. We shall keep maintaining our wide portfolio of high quality consumer food options and step up our input of locally sourced raw materials thereby supporting the livelihood of Nigerian farmers and Nigerian businesses,” Coumantaros said.

    He added that the group would continue to invest in growing portfolio of localised products in support of the nation’s economy.

    He outlined that as the group strives to further restructure its operations, streamline business operations to focus on core businesses, constantly monitor and manage costs optimally, improve and re-engineer existing product range, the group will focus on innovation and develop new strategies for the market by making its products more visible and available at points of sale.

    “We shall also continue to improve our sales, merchandising, redistribution personnel and activities,” Coumantaros said.

    He reiterated the support of the group for the Federal Government’s backward integration policy, assuring that the group is determined to ensure that its agro-allied strategy provides sustainable returns on capital invested by maximising local content in group products.

    He noted that in furtherance of the group’s vision to be involved at all stages of food value chain- from the farm to table, raw materials are being produced locally to ensure that good quality but fair value products are developed locally through the food supply chain to final consumer consumption.

    “By our policy of aggregating grains and local farm products, we are creating jobs and boosting rural economy. We are determined to continue to ensure that our investments and processes aside from ensuring value for shareholders and other stakeholders continue to enrich the lives of our consumers, farmers, suppliers and other relevant stakeholders,” Coumantaros said.

     

     

     

     

  • Honeywell Flour Mills revenue hits N53.27b

    Honeywell Flour Mills revenue hits N53.27b

    Honeywell Flour Mills Plc has, despite the tough economic environment, grown its revenue from N50.88 billion last year to N53.27 billion in the year, representing a five per cent increase year-on-year.

    It posted 191 per cent increase in gross profit from N4.36  billion in 2016 to N12.71 billion in the 2017 financial year.

    The company achieved a 291 percent increase in profit before taxation, to N5.47 billion in 2017 from a loss position in 2016. Consequently, the Company declared a dividend of 6 Kobo per ordinary share to its shareholders at its just concluded Eighth Annual General Meeting (AGM).

    The AGM attracted an unprecedented many shareholders who welcomed the improved  performance  in the company.

    Chairman of the company, Oba Otudeko, said the impressive result is a result of the medium term strategy of the company hinged on the platforms of growth, efficiency and capability as critical enablers of success.

    Otudeko attributed the improved earnings and profits to the company’s relentless focus on lower cost sourcing for raw materials and foreign exchange and increased efficiency in manufacturing.

    He said: “In 2017, we reaped the benefits of a well-executed input cost management strategy. Our results show continued growth and a substantial step-up in profitability despite the volatile economic environment. It was achieved largely through improved efficiency.

    “Our manufacturing function drove further efficiencies through continuous improvement in projects that enhanced engineering and plant maintenance processes and ensured higher levels of production efficiency.’’

    The chairman assured shareholders of the board and management’s dedication, diligence and commitment to the company’s mission, which is to produce consistently good quality flour and other wheat based products for the complete satisfaction of its highly valued customers.

    Honeywell Flour Mills Managing Director, Lanre Jaiyeola, said the company was making significant changes to its business to lay a better platform for the years ahead.

    Looking further, he said: “In Financial Year 2018 and on the heels of an improving economic environment, we expect to record further improvements in performance, reigniting our growth agenda and extracting increased efficiency and cost reduction through a recently-launched company-wide transformation and continuous improvement programme.”

    A shareholder, Sir Sunny Nwosu, commended the company’s efforts at ensuring that it remains on the path of growth, urging them to continue to focus on lower cost sourcing for raw materials.

    Nwosu charged the board and management to remain steadfast with its aggressive strategies to further grow market share and increase revenue significantly in alignment with its mandate.

  • Flour Mills to raise N40b equity funds in three years

    Flour Mills of Nigeria (FMN) Plc has registered a shelf fund raising programme with the Securities and Exchange Commission (SEC). It will allow the leading flour-milling company to raise up to N40 billion in equity funds over the next three years.

    Flour Mills of Nigeria (FMN) Plc Chairman, John Coumantaros, who confirmed the approval of the fund raising by the apex capital market regulator, said the board of directors had decided to raise the new equity funds in tranches.

    Flour Mills plans to raise the new equity funds through a rights issue, which will proportionately allot shares to shareholders on the basis of their shareholdings as at a pre-determined date. Shareholders had at an extraordinary general meeting in 2015 authorised the directors to raise up to N40billion of additional equity funds a rights issue.

    Coumantaros said the board of directors would watch the capital market condition to determine the appropriate time to launch the first tranche of the new supplementary issue.

    “We will continue to assess the economic climate to determine the most appropriate time to launch the first tranche,”Coumantaros said.

    Reviewing the operations and outlook of the group, Coumantaros noted that though the operating environment has been tough and challenging, the group can look to the future with confidence that its prospects are promising and bright while the fundamentals are strong.

    According to him, the group sees opportunities in the challenges and it is determined to explore them in the most profitable but sustainable manner.

    “FMN is determined to continue to feed the nation every day. We shall keep maintaining our wide portfolio of high quality consumer food options and step up our input of locally sourced raw materials thereby supporting the livelihood of Nigerian farmers and Nigerian businesses,” Coumantaros said.

    He added that the group would continue to invest in growing portfolio of localised products in support of the nation’s economy.

    He outlined that as the group strives to further restructure its operations, streamline business operations to focus on core businesses, monitor and manage costs optimally, improve and re-engineer existing product range, the group will focus on innovation and develop new strategies for the market by making its products more visible and available at points of sale.

    “We shall also continue to improve our sales, merchandising, redistribution personnel and activities,” Coumantaros said.

    He reiterated the support of the group for the Federal Government’s backward integration policy, assuring that the group is determined to ensure that its agro-allied strategy provides sustainable returns on capital invested by maximising local content in group products.

    He noted that in furtherance of the group’s vision to be involved at all stages of food value chain- from the farm to table, raw materials are being produced locally to ensure that good quality but fair value products are developed locally through the food supply chain to final consumer consumption.

    “By our policy of aggregating grains and local farm products, we are creating jobs and boosting rural economy. We are determined to continue to ensure that our investments and processes aside from ensuring value for shareholders and other stakeholders continue to enrich the lives of our consumers, farmers, suppliers and other relevant stakeholders,” Coumantaros said.

    He pointed out that by investing in the nation’s agricultural food-chain, the group was safeguarding its future and ensuring the sustainability of its businesses, noting that the backward integration programme is the most viable and sustainable thing to do.

  • Flour Mills increases majority stake in Rom Oil Mills

    Flour Mills of Nigeria Plc has increased its majority equity stake in Rom Oil Mills Limited from 90 per cent to 95 per cent. With the increase, the Shahimi family now collectively owns five per cent minority stake in the Ibadan, Oyo State-based oil mill.

    Group Managing Director, Flour Mills of Nigeria Plc, Mr Paul Gbededo, said the decision to increase the shareholdings in Rom Oil Mills was part of Flour Mills’ strategy of continually investing in the development of quality foods and agro-allied products for its consumers.

    He said the group was fully confident that its new investment will help to strengthen the company in its drive for economic growth and industrial development of Nigeria.

    He pointed out that the investment was a key feature in Flour Mill’s strategic drive to grow its food and agro-allied value chains in consonance with Nigeria’s industrial Revolution Plan (NIRP) and government’s Agricultural Transformation Agenda (ATA).

    “FMN strongly believes that the operation of ROM Oil will continue to significantly help to maximise local content, achieve foreign exchange savings and will have a big impact on feeding the nation better,” Gbededo stated.

    Flour Mills had in November 2014 announced the commissioning of the most modern fully automated edible oil refinery and margarine plant built in Sub Sahara Africa by ROM  Oil Mills.

  • N40b capital issue: Flour Mills mulls rights, debt

    N40b capital issue: Flour Mills mulls rights, debt

    Flour Mills of Nigeria Plc is considering selling new ordinary shares to existing shareholders and issuance of new debt securities to raise some N40 billion as part of efforts to bolster the capital base of the country and cushion the adverse impact of Naira devaluation on its balance sheet.

    Flour Mills’ share price rose by N1.98 to close at N21.98 at the weekend at the Nigerian Stock Exchange (NSE). It has traded within a high of N34.05 and a low of N15.93 in the past 12 months.

    While details of the new issues remain sketchy at the weekend, chief financial officer, Flour Mills of Nigeria Plc, Jacque Vauthier, confirmed that the flour-milling company has already secured the approval of the Securities and Exchange Commission (SEC) to raise some N40 billion in new equity funds over the next three years.

    During analysts’ conference on the full-year results of the company, Vauthier said the company had opted for a shelf plan for the new fund raising, which allows the company to raise the fund in many tranches as it deems fit.

    He said the market condition at the stock market would determine the timeline for the commencement of the issuance.

    He said the company was considering several options to include equity issue, short-term debt issue and refinancing to manage its leverage and ensure that its balance sheet supports the growth and profitability of the company.

    According to him, Flour Mills will use the net proceeds from the new issues to reduce its debt and bolster working capital.

    It should be noted that shareholders had earlier approved the planned new issue at the 2015 annual general meeting, but the decline at the Nigerian capital market had frustrated several proposed new issues.

    Flour Mills had sold its stake in the United Cement Company of Nigeria (Unicem) to the Lafarge Africa Group as it restructured its businesses to focus on the food industry.

    The group had restructured and increased investment in its sugar company, which led to successful commissioning of a 750,000 metric tons per annual sugar refinery built at a cost of $250 million in April 2013. In furtherance of the its long term business model and growth strategy, Flour Mills had embarked on group restructuring, strategic business acquisitions and investment in its core food business and backward integration programmes.

    Flour Mills had invested in large scale commercial farming to support its food processing units with locally produced raw materials. It had invested about N41 billion in capital projects including key projects such as flour capacity expansion in its Apapa mills, completion of Golden Snacks facility in Agbara, completion of Golden Sugar Refinery, establishment of new flour mill in Calabar, expansion of pasta & noodles lines and many major agro allied projects such as investments in Sunti Golden Sugar Estates and new animal feed mill and acquisition and development of large scale commercial farming.