FMN held its 56th Annual General Meeting at Jasmine Hall, Eko Hotel and Suites, Victoria Island, Lagos on Thursday, 8th September, 2016.

In spite of the strong economic headwinds and tough business environment, devaluation of the Naira and unrest in the North East, Flour Mills Group had an inspiring year wherein Group Revenue grew by 11% from its 2015 figures of #7.7 billion to #11.5 billion. Group Profit After Tax was #14.4 billion, 71.4% higher than #8.4 billion of 2015 financial year.


The Company Flour Mills of Nigeria Plc., posted a Revenue of #248 billion, a growth of 8% over the #230 billion of last year. Impressively, the Company’s Profit Before Tax grew by 589% to #6.2 billion from the #0.9 billion posted last year, whilst Profit After Tax grew by 334% to #10.4 billion from #2.4 billion.


Cost of sales was impacted by impacted by higher cost of foreign currency market deregulation resulting in closing in closing blended exchange rate of #295 to $1 as CBN rate of #197.50. The Company was able to offset the impact of the foregoing on its bottom line only by gradual increase in selling prices of its products.


Our management 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.


We are 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.


Our confidence in the future prospect of our Company is demonstrated by the fact that despite daunting economic challenges to our business, our directors are proposing to our shareholders at the forthcoming Annual General Meeting, the declaration of  a total of #2.62 billion (2015 – N5.5 billion) representing Dividend payment of N1.00 (2015 – N2.10) per ordinary share of  50 kobo each. The dividend is to be declared out of accumulated pioneer profits and will therefore not be subjected to withholding Tax deductions. We wish to assure our esteemed shareholders of our commitment to delivery superior shareholder value.


During the year FMN increased its already substantial investment in its Agro Allied businesses where it now grows and processes maize , soy beans, sorghum, sugar cane, palm oil rice, cassava and poultry and our dominant supply of Fertilizer and Agric Sacks to the Nigerian market. 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 area. FMN’s goal is to be involved at all stages of 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. We are mindful of the importance of our agricultural operations to be profitable, sustainable and environmentally friendly.


We shall continue to leverage on the unassailable quality of our flagship product, Golden Penny Flour; the growing popularity and market acceptability of our sugar brand; our continuous investment in new milling technology; our major investment in Agro Allied businesses; development and introduction of new products in response to evolving consumer expectations; and our strengthened Pan Nigerian products distribution network to generate improved earning and deliver superior shareholder value.