WorldStage Newsonline– Flour Mills of Nigeria Plc has released its first quarter 2025 (Q1-25) unaudited results with a pre-tax profit of N7.36 billion from a loss of N9.34 billion in Q1-24 while profit after tax dropped to N6.98 billion from N9.34 billion in Q1-24, a 25.27% growth.
The company’s revenue grew by 67.2% y/y in Q1-25, driven by substantial growth across the Food (+61.2% y/y | 64.15 of revenue), Agro-Allied (+68.0% y/y), Sugar (+92.2% y/y | 16.7% of revenue), and Support Services (+85.4% y/y | 1.5% of revenue) business segments.
The top-line increase was attributed to volume growth and a favourable mix and the higher volumes were likely due to increased penetration into new markets and enhanced distribution following the company’s full launch into the Apapa free trade zone in 2024FY, and; gains from recently launched products such as Golden Penny chocolate spread, Mayonnaise, Chin-chin, in the North, along with new flavours (Goat Pepper Soup and Jollof Hot Hot) in the Noodles line, which were reportedly well-received by the market.
On a quarter-on-quarter basis, revenue grew slowly by 4.2%.
Gross margin expanded to 11.4% (+36bps y/y), following the strong revenue expansion (+67.2% y/y).
Meanwhile, the cost of sales increased by 66.5% y/y due to pressures from currency depreciation and a highly inflationary environment, leading to a 67.0% y/y rise in raw material costs during the period. Consequently, EBIT margin (+4bps y/y) increased slightly to 6.4%, amid a 70.8% y/y rise in operating expenses.
Net finance costs increased slightly by 9.2% y/y, following a 24.6% y/y increase in FX loss amid an 841.7% y/y increase in finance income.
The company reported earning per share (EPS) of N1.94 from a loss per share of N2.49 in Q1-24, underpinned by robust revenue performance (+ 67.2% y/y) in the period.
