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  • Business - Companies
  • Updated: October 27, 2020

Flour Mills Of Nigeria Q2 Revenue Survives On Pasta, Noodles' Consumers

Flour Mills Of Nigeria Q2 Revenue Survives On Pasta, Noodles

Consumers of Pasta and Noodles helped Flour Mills of Nigeria grow its revenue in the second quarter of 2020, its financial statements obtained by AllNews disclosed. The food and agro-allied company generated NGN200.53 billion during the period under review, to surpass the amount generated in Q2 2019.

This year's second quarter revenue grew by 47.4 percent when compared to the NGN136.01 billion Flour Mills of Nigeria generated in the corresponding period of last year second quarter. The company was also able to grow its profit despite an increase in cost of production of its products.

Rising Cost Of Sales Unable To Drag Profit Down

The cost of producing these products increased during the period under review, as Flour Mills of Nigeria reported that it cost of sales jumped to NGN175.78 billion in Q2 this year, rising from the NGN120.71 billion it posted in the same period of 2019.

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Despite the hike in cost of sales, Flour Mills of Nigeria's profit grossed in the second quarter of this year hit NGN24.74 billion, surpassing the NGN15.30 billion it reported as gross profit for the corresponding period of last year.

Pasta, Noodles Consumers Driving Revenue Growth

During the period under review, Food segment of the Group generated NGN215.89 billion, surpassing the NGN170.04 billion it generated in Q2 2019, with the closest segment being edible oil and other Agro Allied products, which generated NGN72.05 billion; this reflect the importance of the company's core products.

Flour Mills of Nigeria's revenue sources includes flour milling, production of pasta and noodles, production of livestock feeds, sale of fertiliser, edible oil, amongst others - the company's popular brand include Golden Penny Flour, Golden Penny Pasta and Noodles, Golden Sugar and more.

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PBT, PAT Moving In Same Direction As Revenue

AllNews gathered that Flour Mills of Nigeria's Operating Profit rose to NGN12.74 billion in 2020 second quarter, surpassing the NGN6.92 billion reported for the second quarter of 2019.

Profit Before Tax also increased in 2020 Q2, rising above the NGN3.13 billion posted in the corresponding period of 2019, as this year's second quarter recorded a significant rise of NGN8.15 billion.

Also, the Profit After Tax rose during the period under review, as Flour Mills of Nigeria reported that the PAT rose to NGN4.96 billion in this year's Q2, rising significantly above the NGN1.66 billion it posted for 2019 second quarter.

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