FMN’s Investments In Agro-allied Business To Save $370m Annually

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Flour Mills of Nigeria Plc, said it has invested up to N90 billion in agro-allied supply chain, creating 9,000 jobs with a multiplier (indirect) of up to 54,000 jobs in the country.

The investments in the food value chains, which include oils and fats, feeds/proteins, starches, agro distribution and sweeteners have potential of saving up to $379 million per annum in scarce foreign exchange.

The company’s Chairman, John George Coumantaros said with the constantly challenging economic terrain prevalent in the country, one of the FMN’s many contributions is supporting Nigerians investing in the area of agriculture through its foods and agro-allied businesses.

Coumantaros disclosed this at the company’s 57th annual general meeting in Lagos, said that looking outwards, the company is also strong champions for localisation of its products and the sourcing of local raw materials.

On the company’s financial performance, he said FMN recorded revenue of N375 billion, a growth of 51 per cent over the N248 billion of last year.

He hinted that the company’s profit before tax was N11 billion, an increase of 77 per cent over the N6.2 billion posted last year while profit after tax was N9.6 billion as against N10.4 billion posted last year.

However, the shareholders of the company approved the payment of a dividend of N1.00 for every ordinary share of 59 kobo same as last year. They commended the company for consistently paying shareholders dividend every year.

Coumantaros said the strong improvement in revenue and profitability was primarily driven by volume growth and selling price increases needed to offset higher import costs as a result of the 60 per cent devaluation of the Naira during the year.