Flour Mills Grows 2021 Net Profit By 116%, Offers N1.65 Dividend/Share

 

Investors are expected to react Wednesday to the audited result of Flour Mills of Nigeria Plc for the year ended March 31, 2021, submitted after trading hours Tuesday, highlights of which showed that net profit soared by 126%, significantly faster than the 34% growth in revenue within the period and 97% jump in net income tax for the period, following which dividend per share was increased by 18%.

According to the report submitted to the Nigerian Exchange (NGX), revenue for the period improved from N573.774bn in the corresponding period of 2020, to N771.607bn, of this amount, cost of sales grew from N573.774bn to N664.85bn; resulting in gross profit of N106.757bn, an increase from N65.787bn.

A breakdown of the revenue showed that sale of goods fetched a total of N742.409bn, from N561.447bn; while rendering of services contributed N29.198bn, up from N12.327bn; with the food segment contributing N478.331bn, as against the previous N358.353bn; followed by agro allied (comprising Golden Penny Vegetable oil, soyal oil; and margarine products), with N139.439bn, up from N105.463bn; leaving sugar with a total of N124.638bn, compared to the previous N97.629bn.

Cost of sales for the period was driven by the cost of raw and packing materials, which accounted for N583.617bn, up from N435.482bn; followed by production employee cost of N20.369bn from N17.51bn; depreciation rose from N20.043bn to N21.605bn; fuel and oil cost N17.806bn from N16.524bn; among others.

Net operating losses stood at N15.528bn, compared to the previous N4.905bn gain; just as write-back  on trade and intercompany receivables stood at N2.093bn, compared to the N.988bn impairment loss reported in the same period of 2020.

Selling and distribution expenses climbed to N12.079bn from N9.278bn; administrative expenses increased during the period from N23.346bn to N29.045bn; leaving an operating profit of N52.196bn, up from N35.079bn.

Investment income increased to N3.652bn from N2.392bn; just as finance costs dropped to N18.655bn from N19.975bn; following which Profit before tax improved by 113% from N17.496bn to N37.193bn; while tax rebates stood at N91.216m, as against a tax expense of N243.222m; while profit after minimum tax improved from N17.253bn to N37.284bn. Net income tax increased from N5.876bn to N11.567bn; resulting in profit from continuing operations of N25.716bn, up from N11.376bn, from which the directors have proposed a dividend of N6.765bn, up from N5.74bn in the last financial year. This translated to Earnings Per Share of N6.38, up from N2.55, from which the board has recommended N1.65 dividend per share for approval by shareholders at the next annual general meeting, up from N1.40 in the prior full-year.

https://investdata.com.ng/flour-mills-grows-2021-net-profit-by-116-offers-n1-65-dividend-share/