Nigerian Flour Mills posts 134.85% rise in PAT

Nigerian Four Mills has demonstrated commitment to reward shareholders through positive performance as its key performance indices for the third quarter ended 31 December 2017 showed remarkable growth.

The fast moving consumer goods company (FMG) , in its third quarter result delivered by the Nigerian Stock Exchange on Tuesday, for the financial year ending March 2018, showed that r grew by 0.33% q/q; 9.82% y/y to close the quarter at N129billion.

According to the result, the company which is currently floating rights issues, recorded profit before tax of N6.03bn,reflecting a 17.58% q/q and 148.79% y/y growth, while Profit after tax of N3.89bn, also showed growth by 6.45 per cent q/q; and 134.85% y/y advancement.

For nine months period ended 31 December 2017, for the 2018 financial year, the company posted revenue of N427.51bn, indicating 9.63 per cent growth y/y. for the same period, Profit before tax of rose y 89.46 per cent y/ y to N19.50billion, while Profit after tax of N13.25bn advanced by 79% y/y

Flour Mills of Nigeria Plc is currently floating a N39.9bn rights issue as part of its growth strategy targeted at building long-term value for all stakeholders. The group is looking at strengthening its capital base, supporting its working capital and driving financial flexibility that will guaranty business growth.

Following the receipt of shareholders’ approval in May 2015 to raise additional capital via a rights issue, the manufacturer said it had received clearance of the issue documents from the Securities and Exchange Commission and the Nigerian Stock Exchange to proceed with Series 1 of the rights issue programme.

The company said it intended to raise N39,855,845,286.00 by way of rights to existing shareholders, on the basis of nine new shares for every 16 shares held by shareholders, whose names appeared in the register of members of the company as at December 8, 2017 at an issue price of N27 per share.

This programme enables the company to raise funds in several tranches over a three-year period, as the issue is being undertaken as part of the long-term plan to strategically position FMN for sustainable growth.