FMN: Shareholders approve N2.6bn dividend

Shareholders of Flour Mills of Nigeria (FMN) Plc has approved a dividend payout of N2.624 billion at the company’s 57th Annual General Meeting (AGM) held on Wednesday, in Lagos.

The dividend translated one naira per ordinary share of 50 kobo, being declared out of the company’s accumulated profit.

Speaking at the AGM, FMN Plc Chairman, John Coumantaros, said the board of the company would ensure continued value appreciation.

“We are determined to continue to ensure that our investments and processes aside from ensuring value for shareholders and other stakeholders, continue to enrich the lives of our customers, farmers, suppliers and other relevant stakeholders,” he said.

Coumantaros, while speaking on the challenges manufacturing industries continue to face during the economic turbulence, noted that persistent decline in the exchange value of Naira, among others, contributed to the rise in the cost of imported raw and packaging materials.

He, however, noted that in the face of these challenging external circumstances, the company was determined to continue to work assiduously to mitigate the effects on its operations, as the company is unrelenting in its drive of being the leading food and agro-allied group in Africa.

On the financial result for the year 31 March, 2017, the chairman noted that FMN Plc increased its revenue by 51 per cent at N375bn, as against N248bn recorded in 2016. The company’s Profit Before Tax also grew 77 per cent over N6.2 billion posted last year.

According to the Chairman of the group, “The performance is attributable to better rice management and improved cost control. The strong improvement in revenue and profitability was primarily driven by volume growth and selling price increases needed to offset higher import costs as a result of 60 per cent devaluation of the Naira during the year”

On the outlook of the company, he reassured shareholders to expect better performances. “I want to reassure you that you can look to the future with confidence that our Group’s prospect is promising and bright, while the fundamentals are strong. Your directors and I see opportunities in the challenges and are determined to explore them in the most profitable but sustainable manner.”