Market leader in food and allied products in Nigeria, Flour Mills of Nigeria Plc (FMN) Group, has announced it recorded revenue amounting to N202.92 billion in its unaudited half year result for six months ended September 30, 2018.
According to a filing obtained from the Nigerian Stock Exchange (NSE)’s website, the group increased its market share in some product categories, in a somewhat challenging environment with lower consumer spending.
The group recorded a 49 per cent increase in selling and distribution expenses of N4.13 billion, compared to N2.77 billion of the same period last year as it increased its marketing spend, while growth in investment income grew by 6 per cent to N290 billion as against N270 million of the same period last year.
The company, FMN, recorded a revenue of N202.92 billion, compared to N216.77 billion of the same period last year, representing a 6 per cent reduction due to the minor drop in sales volume which was precipitated by the persistent traffic challenges in Apapa.
However, administrative expense was N7.55 billion, compared to N5.87 billion in the same period as at last year.
The 29 per cent increase was driven by increase in employee cost and other general expenses.
Commenting on the result, Group Managing Director, FMN, Paul Gbadebo, noted that despite the persistent economic challenges, the company will continue to pursue its growth strategy to gain market share in all key product segments.
“Operations in Apapa continue to suffer major setbacks in traffic and logistics challenges, impacting in a marginal drop in our volume and top line activities. With improved marketing and promotional activities for most of the key food businesses, we envisage new gains in the remaining part of the year, as we continue to focus on innovative products that deliver on great consumer experience.”
The Group recorded a notable drop in its finance cost from N16.27 billion in Q2, 2017 to N11.23 billion in Q2, 2018, representing a 31 per cent drop due to settlement of overdraft facilities and replacement of high interest yielding loan facilities with cheaper loan facilities.