Flour Mills of Nigeria Plc (FMN) has posted a profit after tax (PAT) of N8.5 billion at a growth rate of 58 percent compared with N5.4 billion in 2014.
The performance was achieved against the background of 5 percent drop in revenue, which was down from N325.8 billion to N308.8 billion.
This financial result was disclosed by John Coumantaros, chairman, FMN, at the firm’s annual general meeting held in Lagos last Wednesday.
He also disclosed that the board was recommending to shareholders a dividend pay-out of N5.5 billion (2014 – N5.01bn), that is N2.10 (2014-N2.10) per ordinary share of 50 kobo payable net of withdrawing tax.
Coumantaros however mentioned that the latter stage of the company’s strategic expansion unfortunately coincided with the sudden slump in global crude oil prices which resulted in major devaluation of the naira leading to increases in import costs and financial charges.
As a result, the company sought and obtained shareholder’s approval to raise the company’s authorized share capital from its current N2 billion to N2.5billion and to thereafter, subject to regulatory approvals, issue additional shares by way of rights to existing shareholders on the basis of five new ordinary shares for every 12 ordinary shares held at N27.50 per share.
The chairman assured that the company will continue to explore opportunities to streamline, re-focus and take its fast moving customers food and agro-allied businesses to a higher platform within and outside Nigeria.
According to him, “We shall strive to strengthen our core food business and, in tandem with our strategic business thrust and in alignment with government’s vision of developing the Agricultural sector, we are determined to ensure the success of our agro-allied investments; and in doing so, maximize local content in our final products and derive group synergies.”
The shareholders who commended the efforts of the company in its strive to strengthen the food industry also stressed on the need to review the right issue so that it can accommodate all its shareholders who had contributed to the success story of the company.
