By Nse Anthony-Uko
(Sundiata Finance) — The board of directors of Flour Mills of Nigeria (FMN), Plc has proposed N2.62 billion gross dividends, which translates to N1.00 per ordinary share of 50 kobo each for the financial year ended March 31, 2017.
The company result which was released on the Nigerian Stock Exchange (NSE), yesterday, showed that profit after tax went down by 38.72 per cent to N8.84 billion from N14.42 billion in 2016, while profit before tax fell to N10.47 billion from N11.49 billion, which translated to earnings per share of N3.03, as against the preceding year’s N5.57.
Specifically, revenue for the period rose by 71 per cent to N524.464 billion from N342.59 billion in the corresponding period of 2016, while cost of sales rose to N457.77 billion from N304.96 billion, resulting in gross profit of N66.7 billion up from N37.62 billion.
A further analysis showed that selling and distribution expense was flat at N5.34 billion, as against N5.003 billion, administrative expenses rose slightly to N18.42 billion from N15.85 billion, net operating loss dropped to N1.49 billion from N7.72 billion, translating into a huge operating profit of N41.44 billion as against N9.05 billion in the prior full year.
Recently, the group managing director of FMN, Mr. Paul Gbededo, said, “The management of the company is determined to further restructure our operations, streamline our business operations to focus on core businesses and constantly monitor and manage our costs optimally to hedge against further economic challenges which might evolve.
“It is also noteworthy that management is resolute in ensuring that sustainable returns and dividends from the Group’s agro allied investments are properly harnessed by maximizing local content in the Group’s products, bye- products and processes.”
FMN continues to be one of the major promoters of the Agricultural Transformation Agenda of the Federal Government with its on-going agro-allied investments aimed at creating jobs and stimulating economic activities in urban and rural areas. FMN’s goal is to be involved at all stages of the food value chain where a profitable and sustainable Agro-Allied platform of cultivating and processing locally produced raw materials will ensure the growth and success of our food business, he added.