Flour Mills React As Revenue, Profit Survives COVID-19 Assault, Lockdown Impact

Flour Mills Nigeria Plc has reacted to the company's financial result for the second quarter of 2020. The company recorded an increase in its earnings for the Q2 2020 when compared to the corresponding period of 2019. According to the company, it had been able to grind out impressive financial performance amidst a difficult business environment.

The company said the performance will flow through the remaining quarters of the year. It stated that quarter three and four will be no difference from Q2 considering Flour Mills' performance in the first six months of this year, "Similar to the performance over the last few quarters our business has been able to sustain the strong performance in spite of the increasing difficult terrain and uncertainties.

"Management remains optimistic that with continued efforts in sales and marketing activities geared at boosting our top line while keeping the cost under control, we should be able to sustain the good performance for the remaining period." The company said in a statement seen by AllNews.

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Note that Flour Mills as a Group spent less on marketing in Q2 2020 than it did in Q2 2019, as it reported N2 billion for the second quarter this year, lower than the N2.03 billion it spent in Q2 2019, while the Company spent N1.57 billion on marketing in Q2 2020, higher than the N1.56 billion of Q2 2019.

Other Flour Mills Financials You Should Know

Flour Mills recorded an impressive financial performance in the second quarter of this year, the financial statements seen by AllNews disclosed. Flour Mills Group reported that it generated N154.5 billion Revenue between April to June 2020, surpassing the N134.7 billion revenue it reported in Q2 2019.

But the Company reported that it generated N98.7 billion in the same period of Q2 2020, rising beyond the N88,5 billion generated in the corresponding period of 2019. The revenue growth of Flour Mills had occurred despite the business disruption caused by COVID-19 pandemic which affected many companies' earnings.

The same time Flour Mills group reported the impressive Q2 2020 performance, the Group had increased its Cost of production or sales, which rose from N118.2 billion of Q2 last year, to N129 billion in the three months of this year's second quarter. The same also went for the Company, which reported cost of sales of N84 billion in Q2 2020, increasing from the N79 billion of Q2 2019.

Increase in cost of sales didn't affect the Group's Gross profit, as it recorded N25.54 billion in Q2 this year, surpassing the N16.4 billion it reported for Q2 2019. The Company also reported an increase in its gross profit, after generating N14.6 billion in Q2 2020, higher than the N9.4 billion it recorded in 2019 Q2.

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Also, Operating profit of the Group rose from the N8 billion of 2019 Q2, to N10.9 billion in the second quarter of 2020. However, the financial statement showed that the Company's Operating profit dropped in Q2 2020, after it reported N4.4 billion, below the N4.7 billion of Q2 2019.

The increase in revenue and gross profit reflected in the Group's Profit before tax, as AllNews saw that Flour Mills Group recorded N6.4 billion in the second quarter of 2020, surpassing the N5.5 billion it reported last year Q2. The company also recorded growth in its Profit before tax, having generated N3.1 billion in Q2 2020, higher than the N2.7 billion it generated in 2019 Q2.

The increase in Flour Mills earnings was also reported in the Group's Profit for the period of the second quarter of 2020, with N4.9 billion reported for the period, surpassing the N4.2 billion it recorded in the corresponding period of 2019. Also, the Company increased its Profit after tax (for the period) following the N2.4 billion it reported, rising past the N2 billion it reported for the Q2 2019 period.