FLOUR MILLS OF NIGERIA PLC FLOUR MILLS OF NIGERIA PLC
CONDENSED CONSOLIDATED AND SEPARATE INTERIM FINANCIAL STATEMENTS
30TH SEPTEMBER, 2023
Flour Mills of Nigeria Plc
UNAUDITED FINANCIAL RESULTS FOR SIX MONTHS ENDED 30 SEPTEMBER 2023
The Directors of Flour Mills of Nigeria Plc (FMN) are pleased to announce the unaudited financial results of the Group and the Company for the six months ended 30 September 2023 as follows:
Group | Company | |||
Six months ended | Six months ended | |||
30/09/2023 | 30/09/2022 | 30/09/2023 | 30/09/2022 | |
N'000 | N'000 | N'000 | N'000 | |
Revenue | 964,647,813 | 720,576,029 | 602,576,657 | 402,357,788 |
Cost of sales | (859,136,065) | (651,789,320) | (548,589,194) | (363,638,475) |
Gross profits | 105,511,748 | 68,786,709 | 53,987,463 | 38,719,313 |
Selling and distribution expenses | (11,777,659) | (7,938,731) | (8,462,819) | (6,593,471) |
Administrative expenses | (25,189,471) | (18,089,524) | (15,358,250) | (10,415,049) |
(Impairment loss)/write-back on trade and intercompany | ||||
receivables | (382,556) | (455,363) | 121,445 | 785,675 |
Net operating losses | (43,463,677) | (11,977,273) | (29,428,710) | (5,644,053) |
Operating profit | 24,698,385 | 30,325,819 | 859,129 | 16,852,415 |
Investment income | 1,770,223 | 378,180 | 9,079,810 | 2,248,157 |
Finance costs | (34,605,628) | (22,320,998) | (21,441,053) | (11,586,354) |
(Loss)/profit before tax | (8,137,020) | 8,383,001 | (11,502,114) | 7,514,218 |
Tax expense | (384,000) | (2,682,979) | (833,119) | (2,404,926) |
(Loss)/profit for the period | (8,521,020) | 5,700,021 | (12,335,233) | 5,109,292 |
Cashflow hedge | - | 3,285,142 | - | 3,374,133 |
Related tax | - | (821,286) | - | (843,533) |
Total comprehensive (loss)/income | (8,521,020) | 8,163,878 | (12,335,233) | 7,639,892 |
(Loss)/profit attributable to: | ||||
Owners of the Company | (9,956,294) | 8,073,973 | (12,335,233) | 5,109,293 |
Non-controlling interests | 1,435,274 | (2,373,952) | - | - |
(8,521,020) | 5,700,021 | (12,335,233) | 5,109,293 | |
Total comprehensive (loss)/income attributable to: | ||||
Owners of the Company | (9,956,294) | 10,537,830 | (12,335,233) | 7,639,892 |
Non-controlling interests | 1,435,274 | (2,373,952) | - | - |
(8,521,020) | 8,163,878 | (12,335,233) | 7,639,892 | |
(Loss)/Earnings per share - Basic (kobo) | (243) | 197 | (301) | 125 |
(Loss)/Earnings per share - Diluted (kobo) | (243) | 197 | (301) | 125 |
Explanatory Notes:
FMN Plc has experienced continued strong revenue growth of 34% (Year on Year) with the gross profit growth of 53% ahead of revenue. The operating profit slightly dropped due to foreign exchange loss of N28.7b in the quarter two (Q2) leading to the Group loss before tax of N8.1b. Management remains optimistic that with the current government monetary policies at stabilising the FOREX market, and management continues effort in sales and marketing activities geared towards boosting our top line while keeping cost under control, we expect to see improvement in our operations in the coming period.
Security Trading Policy
Flour Mills of Nigeria Plc has in place a Code of Conduct which aligns with section 14 of the Amendment to the Listing Rules of the Nigeria Exchange Limited. During the period under review, the Directors and employees of the company complied with the Nigerian Exchange Rules relating to securities transactions and the provisions of the FMN Code on Insider Trading.
Compliance with Rules on Free float requirements
We confirm compliance with the free float requirements as up to twenty percent (20%) of the Issuer's issued share capital is available to the public and held by not less than three hundred (300) shareholders.
BY ORDER OF THE BOARD
Joseph A. O. Umolu
Company Secretary / Group Director, Legal Services
FRC/2013/NBA/0000003687
26 October 2023
Contents | Page |
CONSOLIDATED AND SEPARATE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | 1 |
CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION | 2 |
CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY | 3 |
CONSOLIDATED AND SEPARATE STATEMENT OF CASH FLOWS | 4 |
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS | 5 to 16 |
FLOUR MILLS OF NIGERIA PLC
CONSOLIDATED AND SEPARATE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Note | |
Revenue | 5 |
Cost of sales | 6 |
Gross profit | |
Selling and distribution expenses | 7 |
Administrative expenses | 8 |
(Impairment loss)/write-back on trade and | |
intercompany receivables | |
Net operating losses | 9 |
Operating profit | |
Finance income | |
Finance costs | |
Profit/(loss) before tax | |
Income tax expense | 10 |
Profit/(loss) for the period
Cashflow hedge
Related tax
Total comprehensive income/(loss)
Profit/(loss) attributable to:
Owners of the Company
Non-controlling interests
Total comprehensive income/(loss) attributable to: Owners of the Company
Non-controlling interests
Earnings/(Loss) per share - Basic (kobo) | 11 |
Earnings per share
Earnings/(Loss) per share - Diluted (kobo)
Group | |||
3 months ended | 6 months ended | 3 months ended | 6 months ended |
30/09/2023 | 30/09/2023 | *30/09/2022 | *30/09/2022 |
N'000 | N'000 | N'000 | N'000 |
508,271,554 | 964,647,813 | 380,974,715 | 720,576,029 |
(453,054,964) | (859,136,065) | (345,436,413) | (651,789,320) |
55,216,590 | 105,511,748 | 35,538,302 | 68,786,709 |
(5,809,084) | (11,777,659) | (3,329,530) | (7,938,731) |
(13,876,516) | (25,189,471) | (8,015,991) | (18,089,524) |
(266,922) | (382,556) | 203,747 | (455,363) |
(17,685,647) | (43,463,677) | (9,355,843) | (11,977,273) |
17,578,421 | 24,698,385 | 15,040,685 | 30,325,819 |
1,601,861 | 1,770,223 | 184,897 | 378,180 |
(17,980,282) | (34,605,628) | (14,170,956) | (22,320,998) |
1,200,000 | (8,137,020) | 1,054,626 | 8,383,001 |
(384,000) | (384,000) | (850,519) | (2,682,979) |
816,000 | (8,521,020) | 204,107 | 5,700,021 |
- | - | 2,863,260 | 3,285,142 |
- | - | (715,815) | (821,286) |
816,000 | (8,521,020) | 2,351,552 | 8,163,878 |
246,762 | (9,956,294) | 2,442,121 | 8,073,973 |
569,237 | 1,435,274 | (2,238,014) | (2,373,952) |
815,999 | (8,521,020) | 204,107 | 5,700,021 |
246,763 | (9,956,294) | 4,589,566 | 10,537,830 |
569,237 | 1,435,274 | (2,238,014) | (2,373,952) |
816,000 | (8,521,020) | 2,351,552 | 8,163,878 |
6 | (243) | 60 | 197 |
6 | (243) | 60 | 197 |
Company | |||
3 months ended | 6 months ended | 3 months ended | 6 months ended |
30/09/2023 | 30/09/2023 | *30/09/2022 | *30/09/2022 |
N'000 | N'000 | N'000 | N'000 |
326,050,026 | 602,576,657 | 209,122,630 | 402,357,788 |
(298,496,407) | (548,589,194) | (189,917,845) | (363,638,475) |
27,553,619 | 53,987,463 | 19,204,785 | 38,719,313 |
(4,463,139) | (8,462,819) | (3,128,694) | (6,593,471) |
(8,553,894) | (15,358,250) | (4,003,642) | (10,415,049) |
(221,816) | 121,445 | 605,583 | 785,675 |
(7,749,935) | (29,428,710) | (4,686,800) | (5,644,053) |
6,564,835 | 859,129 | 7,991,232 | 16,852,415 |
7,805,358 | 9,079,810 | 1,027,308 | 2,248,157 |
(11,766,697) | (21,441,053) | (7,008,271) | (11,586,354) |
2,603,496 | (11,502,114) | 2,010,269 | 7,514,218 |
(833,119) | (833,119) | (1,028,663) | (2,404,926) |
1,770,377 | (12,335,233) | 981,606 | 5,109,292 |
- | - | 2,904,347 | 3,374,133 |
- | - | (726,087) | (843,533) |
1,770,377 | (12,335,233) | 3,159,866 | 7,639,892 |
1,770,377 | (12,335,233) | 981,606 | 5,109,292 |
- | - | - | - |
1,770,377 | (12,335,233) | 981,606 | 5,109,292 |
1,770,377 | (12,335,233) | 3,159,866 | 7,639,892 |
- | - | - | - |
1,770,377 | (12,335,233) | 3,159,866 | 7,639,892 |
43 | (301) | 24 | 125 |
43 | (301) | 24 | 125 |
*Due to the acquisition of Port Harcourt Flour Mills Plc within the FMN Group during the year (Note 26), the September 2023 numbers are those of the acquired entities while the September 2022 numbers are those of the Group prior to the acquisition.
1
FLOUR MILLS OF NIGERIA PLC | |||||||||
CONDENSED CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION | |||||||||
AS AT 30 SEPTEMBER 2023 | |||||||||
Group | Company | ||||||||
30/09/2023 | *31/03/2023 | 30/09/2023 | *31/03/2023 | ||||||
Note | N'000 | N'000 | N'000 | N'000 | |||||
Assets | |||||||||
Non-current assets | |||||||||
Property, plant and equipment | 13 | 340,182,327 | 340,804,379 | 122,050,266 | 122,019,533 | ||||
Right of use assets | 16,258,575 | 15,501,196 | 2,695,397 | 2,709,056 | |||||
Biological assets | 14 | 46,671 | 54,498 | - | - | ||||
Intangible assets | 15 | 13,471,164 | 13,705,232 | 34,755 | 61,775 | ||||
Investment properties | 16 | 1,269,778 | 1,322,333 | 49,653 | 50,680 | ||||
Goodwill | 12 | 4,148,022 | 4,148,022 | 1,876,816 | 1,876,816 | ||||
Investment in subsidiaries | 17 | - | - | 85,164,727 | 85,164,727 | ||||
Other investments | 18 | 47,260 | 47,260 | 47,260 | 47,260 | ||||
Deferred tax assets | 11,640,696 | 11,484,351 | - | - | |||||
Long term loans receivable | 19 | 47,690 | 43,534 | 17,904,024 | 20,853,541 | ||||
Total non-current assets | 387,112,183 | 387,110,805 | 229,822,898 | 232,783,388 | |||||
Current assets | 20 | 170,358,912 | 151,925,626 | ||||||
Inventories | 373,092,722 | 336,374,640 | |||||||
Biological assets | 14 | 2,903,835 | 666,274 | - | - | ||||
Trade and other receivables | 21 | 51,778,882 | 47,469,558 | 104,526,746 | 97,817,112 | ||||
Prepayment & deposit for import | 22 | 287,175,555 | 228,073,084 | 230,821,416 | 169,592,143 | ||||
Cash and cash equivalents | 23 | 214,182,108 | 97,702,029 | 182,661,739 | 67,167,053 | ||||
Total current assets | 929,133,102 | 710,285,585 | 688,368,813 | 486,501,934 | |||||
Total assets | 1,316,245,285 | 1,097,396,390 | 918,191,711 | 719,285,322 | |||||
Equity and liabilities | |||||||||
Capital and reserves | |||||||||
Share capital | 2,050,197 | 2,050,197 | 2,050,197 | 2,050,197 | |||||
Share premium | 75,377,444 | 75,377,444 | 75,377,444 | 75,377,444 | |||||
Fair value reserve | (88,196) | (88,196) | (88,196) | (88,196) | |||||
Hedging reserve | - | - | - | - | |||||
Retained earnings | 122,711,647 | 132,667,941 | 92,145,849 | 104,481,082 | |||||
Equity attributable to owners of the Company | |||||||||
200,051,092 | 210,007,386 | 169,485,294 | 181,820,527 | ||||||
Non-controlling interest | 16,652,776 | 15,217,502 | - | - | |||||
Total Equity | 216,703,868 | 225,224,888 | 169,485,294 | 181,820,527 | |||||
Liabilities | |||||||||
Non-current liabilities | 25 | ||||||||
Borrowings | 237,905,304 | 210,240,706 | 169,342,621 | 64,608,656 | |||||
Lease liabilities | 29,733,921 | 15,722,575 | 534,317 | 427,938 | |||||
Retirement benefit obligation | 12,681,046 | 11,205,123 | 9,266,131 | 8,418,371 | |||||
Long service award | 4,372,625 | 4,060,137 | 3,256,230 | 2,529,289 | |||||
Deferred taxation | 19,715,200 | 19,489,454 | 14,790,423 | 14,582,143 | |||||
Deferred income | 28,594,330 | 27,362,183 | 3,116,902 | 2,998,181 | |||||
Total non-current liabilities | 333,002,426 | 288,080,178 | 200,306,624 | 93,564,578 | |||||
Current liabilities | |||||||||
Bank Overdraft | 23 | 12,445,080 | 32,806,764 | 10,719,567 | 20,191,541 | ||||
Trade and other payables | 24 | 455,746,798 | 320,649,144 | 324,970,227 | 244,339,315 | ||||
Borrowings | 25 | 228,697,488 | 139,450,591 | 177,207,922 | 127,557,304 | ||||
Lease liabilities | 628,784 | 1,952,565 | 43,387 | - | |||||
Current tax payable | 14,400,607 | 28,862,614 | 10,934,594 | 18,242,070 | |||||
Deferred income | 10,044,273 | 9,153,955 | 1,449,077 | 1,224,144 | |||||
Derivative liability | - | 2,942,620 | - | 2,088,559 | |||||
Dividend payable | 1,687,078 | 516,502 | 1,337,019 | 516,502 | |||||
Customer deposits | 42,888,883 | 47,756,569 | 21,737,999 | 29,740,782 | |||||
Total current liabilities | 766,538,991 | 584,091,324 | 548,399,792 | 443,900,217 | |||||
Total liabilities | 1,099,541,417 | 872,171,502 | 748,706,416 | 537,464,795 | |||||
Total equity and liabilities | 1,316,245,285 | 1,097,396,390 | 918,191,710 | 719,285,322 | |||||
- | - | - | - |
The financial statements were approved by the board of directors and authorised for issue on 26 October 2023. They were signed on its behalf by:
Omoboyede O. Olusanya | Anders Kristiansson | |
Group Managing Director | 0.34 | Group Chief Finance Officer |
FRC/2017/IODN/00000017634 | FRC/2014/ANAN/00000009819 |
*Due to the Acquisition of PHFM Plc within the FMN Group during the year (Note 26), the '30 September 2023' numbers are those of the merged entities while the '31 March 2023' numbers are those of the Group prior to the acquisition.
2
FLOUR MILLS OF NIGERIA PLC
CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Group | ||||||||
Equity | ||||||||
attributable to | Non | |||||||
Share | Share | Fair value | Hedging | Retained | owner of the | controlling | ||
Capital | premium | reserve | reserve | Earnings | company | interest | Total Equity | |
N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | |
Balance at 1 April 2022 | ||||||||
2,050,197 | 75,377,444 | (101,456) | (1,281,434) | 111,101,724 | 187,146,475 | 8,758,216 | 195,904,691 | |
Profit for the period | - | - | - | - | 8,073,973 | 8,073,973 | (2,373,952) | 5,700,021 |
Other comprehensive income | ||||||||
- | - | - | 3,285,142 | - | 3,285,142 | 3,285,142 | ||
Writeback of unclaimed dividends | ||||||||
- | - | - | - | 24,612 | 24,612 | - | 24,612 | |
Dividend declared | ||||||||
- | - | - | - | (8,815,847) | (8,815,847) | - | (8,815,847) | |
Balance at 30 September 2022 | 2,050,197 | 75,377,444 | (101,456) | 2,003,708 | 110,384,462 | 189,714,355 | 6,384,264 | 196,098,620 |
Group | ||||||||
Equity | ||||||||
attributable to | Non | |||||||
Share | Share | Fair value | Hedging | Retained | owner of the | controlling | ||
Capital | premium | reserve | reserve | Earnings | company | interest | Total Equity | |
N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | |
Balance at 1 April 2023 | ||||||||
2,050,197 | 75,377,444 | (88,196) | - | 132,667,941 | 210,007,386 | 15,217,502 | 225,224,888 | |
Loss for the period | - | - | - | - | (9,956,294) | (9,956,294) | 1,435,274 | (8,521,020) |
Other comprehensive income | ||||||||
- | - | - | - | - | - | - | - | |
Writeback of unclaimed dividends | ||||||||
- | - | - | - | - | - | - | - | |
Dividend declared | ||||||||
- | - | - | - | - | - | - | - | |
Balance at 30 September 2023 | 2,050,197 | 75,377,444 | (88,196) | - | 122,711,647 | 200,051,092 | 16,652,776 | 216,703,868 |
Company | ||||||||
Share | Share | Fair value | Hedging | Retained | ||||
Capital | premium | reserve | reserve | Earnings | Total Equity | |||
N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | |||
Balance at 1 April 2022 | ||||||||
2,050,197 | 75,377,444 | (101,456) | (1,281,434) | 98,619,096 | 174,663,847 | |||
Profit for the period | - | - | - | - | 5,109,293 | 5,109,293 | ||
Other comprehensive income | ||||||||
- | - | - | 3,374,133 | - | 3,374,133 | |||
Writeback of unclaimed dividends | ||||||||
- | - | - | - | 24,612 | 24,612 | |||
Dividend declared | - | - | - | - | (8,815,847) | (8,815,847) | ||
Balance at 30 September 2022 | 2,050,197 | 75,377,444 | (101,456) | 2,092,699 | 94,937,154 | 174,356,038 | ||
Company | ||||||||
Share | Share | Fair value | Hedging | Retained | ||||
Capital | premium | reserve | reserve | Earnings | Total Equity | |||
N'000 | N'000 | N'000 | N'000 | N'000 | N'000 | |||
Balance at 1 April 2023 | ||||||||
2,050,197 | 75,377,444 | (88,196) | - | 104,481,082 | 181,820,527 | |||
Loss for the period | - | - | - | - | (12,335,233) | (12,335,233) | ||
Other comprehensive income | ||||||||
- | - | - | - | - | - | |||
Write back of unclaimed dividends | ||||||||
- | - | - | - | - | - | |||
Balance at 30 September 2023 | 2,050,197 | 75,377,444 | (88,196) | - | 92,145,849 | 169,485,294 | ||
3
FLOUR MILLS OF NIGERIA PLC
CONSOLIDATED AND SEPARATE STATEMENT OF CASHFLOWS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Cash flows (used in)/from operating activities (Loss)/profit before tax
Depreciation and amortization
Finance costs
Finance income
Profit/(loss) on disposal of fixed assets
Profit before changes in working capital
Changes in Working Capital (Increase)/ Decrease in Inventory
(Increase)/ Decrease in trade and other receivables (Increase)/ Decrease in Biological assets
(Increase)/ Decrease in Prepayments and deposit for imports Increase/ (Decrease) in Deferred tax assets
(Increase)/ Decrease in Derivative assets Increase/ (Decrease) in Trade and other payable Increase/ (Decrease) in Customers' deposit Increase/ (Decrease) in Dividend payable Increase/ (Decrease) in Tax Payable Increase/ (Decrease) in Lease liabilities Increase/ (Decrease) in Deferred taxation Increase/ (Decrease) in Retirement benefit obligations Increase/ (Decrease) in Long service award Increase/ (Decrease) in Derivative Liabilities Increase/ (Decrease) in Deferred revenue
Net changes in working capital
Cash Flow from/(used in) operating activities
Tax credit utilized
Tax paid
Net Cash Flow from operating activities
Cash flows from Investing activities Acquisition of property, plant and equipment Acquisition of intangible assets
Acquisition of subsidiary - Honeywell Flour Mills Plc Acquisition of subsidiary - Port Harcourt Flour Mills Plc Purchase of biological assets
Long term loans receivable Finance income
Net Cash flow (used in )/from investing activities
Financing activities
Proceeds from borrowings
Finance costs paid
Cash flow from Financing activities
Net Cash Flow
Cash and cash equivalents at beginning of Period/Year Cash and cash equivalents at end of the period
Closing
Bank deposits balances and cash
Bank overdrafts
Opening
Bank deposits balances and cash
Bank overdrafts
Group
30/09/2023 *30/09/2022
N'000N'000
(8,137,020) 8,383,001
17,418,540 15,504,782
34,605,628 22,320,998
(1,770,223) (378,180)
457 (65,980)
42,117,382 45,764,621
(36,718,082) (53,155,138)
(4,309,324) (21,762,609)
(2,229,734) (2,535,472)
(59,102,471) (45,203,866)
(156,345) (219,180)
-
(2,375,059)
135,097,654 70,233,048
(4,867,686) (119,510)
1,170,576 8,783,638
(14,462,007) (11,058,564)
12,687,565 2,959,048
225,746 6,291,822
1,475,923 1,209,602
312,488 392,590
(2,942,620) (1,794,616)
2,122,465 9,724,733
28,304,148 (38,629,533)
70,421,530 7,135,088
(2,021,589) (3,655,552)
(12,794,118) (9,438,301)
55,605,824 (5,958,765)
(18,336,912) (27,795,778)
- (331,074)
-
(14,433,836)
(433,162)-
(437,952) (12,629)
(4,156) (3,444)
1,770,223 | 378,180 |
(17,441,959) | (42,198,581) |
133,283,526 | 89,735,793 |
(34,605,628) | (22,320,998) |
98,677,898 | 67,414,795 |
136,841,763 | 19,257,449 |
64,895,265 | 21,683,588 |
201,737,028 | 40,941,037 |
214,182,108 | 59,208,836 |
(12,445,080) | (18,267,799) |
201,737,028 | 40,941,037 |
- | - |
97,702,029 | 31,621,421 |
(32,806,764) | (9,937,833) |
64,895,265 | 21,683,588 |
- | - |
Company
30/09/2023 *30/09/2022
N'000N'000
(11,502,114) | 7,514,219 |
7,828,946 | 6,850,148 |
21,441,053 | 11,586,354 |
(9,079,810) | (2,248,157) |
11,402 | (47,706) |
8,699,477 | 23,654,858 |
(18,433,286) | (27,098,384) |
(6,709,634) | (4,282,054) |
- | - |
(61,229,273) | (42,509,430) |
- | - |
- (2,375,054)
80,630,912 (37,409,430)
(8,002,783) (3,612,333)
820,517 8,783,638
(7,307,476) (4,874,771)
149,766 (74,614)
208,280 601,137
847,760 772,881
726,941 298,370
(2,088,559) (1,835,703)
343,654 (1,740,927)
(20,043,181) | (115,356,674) |
(11,343,704) | (91,701,816) |
(408,125) | (2,734,841) |
(7,524,190) | (3,943,718) |
(19,276,019) | (98,380,375) |
(8,257,125) | (15,537,473) |
- | - |
- | - |
- | - |
- | - |
2,949,517 | 48,582,289 |
9,079,810 | 2,248,157 |
3,772,202 | 35,292,973 |
161,911,530 | 78,344,103 |
(21,441,053) | (11,586,354) |
140,470,477 | 66,757,749 |
124,966,660 | 3,670,347 |
46,975,512 | 15,710,878 |
171,942,172 | 19,381,225 |
182,661,739 | 30,473,064 |
(10,719,567) | (11,091,839) |
171,942,172 | 19,381,225 |
- | - |
67,167,053 | 20,273,882 |
(20,191,541) | (4,563,004) |
46,975,512 | 15,710,878 |
- |
4
FLOUR MILLS OF NIGERIA PLC
NOTES TO THE CONSOLIDATED AND SEPARATE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
-
Description of business
Flour Mills of Nigeria Plc was incorporated as a private limited Company on 29th September 1960 and was converted to a public liability Company in November 1978.
The Group's business is primarily divided into 4 business value chains which are;
Food value chain
Food business value chain involves flour milling, production of pasta and noodles.
Sugar value chain
Sugar business value chain involves cultivating, processing, refining and selling of sugar.
Agro-Allied value chain
Agro-Allied business value chain involves livestock husbandry, production of livestock feeds, sale of fertilizer, edible oil, farming and other agro-allied activities.
Support services
Support business value chain involves the manufacturing and sales of laminated woven polypropylene sacks and flexible packaging materials, operation of terminals A and B at Apapa Port, customs clearing, forwarding agents, shipping agents and logistics, haulage and real estate. - Reporting entity
The condensed consolidated and separate interim financial report of the Company as at and for the Three months ended 30 September 2023 comprises the Company alone (referred to as the 'Company') and the Company and its subsidiaries (together referred to as the 'Group'). - Basis of preparation
-
Statement of compliance
This condensed consolidated and separate interim financial report has been prepared in accordance with IAS 34 Interim Financial Reporting. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last consolidated financial statements as at and for the year ended 31 March 2023.
This condensed consolidated and separate interim financial report does not include all of the information required for full annual financial statements prepared in accordance with International Financial Reporting Standard. - Judgements and estimates
Preparing the interim financial report requires Management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing this condensed consolidated and separate interim financial report, significant judgements made by Management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 March 2023.
- Significant accounting policies
The accounting policies applied by the Group in this condensed consolidated and separate interim financial report are the same as those applied by the Group in its consolidated statements as at and for the year ended 31 March 2023.
5
FLOUR MILLS OF NIGERIA PLC
NOTES TO THE CONSOLIDATED AND SEPARATE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
5 Operating segments
Information about reportable segments
The following is an analysis of the Group's revenue and results from continuing operations by reportable segment.
Group
Segment revenue | Profit before tax | |||||||
Six months ended | Six months ended | |||||||
30/09/2023 | *30/09/2022 | 30/09/2023 | *30/09/2022 | |||||
N'000 | N'000 | N'000 | N'000 | |||||
Food | 653,479,582 | 445,671,987 | (13,833,046) | 112,758 | ||||
Agro Allied | 143,240,023 | 153,901,998 | 7,789,061 | 7,508,642 | ||||
Sugar | 149,212,675 | 104,661,471 | 800,854 | 1,905,333 | ||||
Support services | 18,715,533 | 16,340,573 | (2,893,889) | (1,143,732) | ||||
Total | 964,647,813 | 720,576,029 | (8,137,020) | 8,383,001 | ||||
Company | ||||||||
Segment revenue | Profit before tax | |||||||
Six months ended | Six months ended | |||||||
30/09/2023 | *30/09/2022 | 30/09/2023 | *30/09/2022 | |||||
N'000 | N'000 | N'000 | N'000 | |||||
Food | 577,496,326 | 379,427,799 | (11,667,879) | 7,237,492 | ||||
Support services | 25,080,331 | 22,929,989 | 165,765 | 276,727 | ||||
Total | 602,576,657 | 402,357,788 | (11,502,114) | 7,514,219 | ||||
Segment revenue reported above represents revenue generated from external customers.
The accounting policies of the reportable segments are the same as the Group's accounting policies. Segment profit represents the profit earned by each segment without allocation of share of profits of associates, IFRS adjustment and income tax expense. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.
6 | Cost of sales | |||||||||
Group | Company | |||||||||
Six months ended | Six months ended | |||||||||
30/09/2023 | *30/09/2022 | 30/09/2023 | *30/09/2022 | |||||||
N'000 | N'000 | N'000 | N'000 | |||||||
Material costs | 786,578,386 | 583,339,299 | 511,235,313 | 330,844,599 | ||||||
Direct staff costs | 16,753,063 | 14,148,895 | 10,361,168 | 8,187,082 | ||||||
Depreciation | 15,209,297 | 13,482,125 | 6,525,529 | 5,630,966 | ||||||
Power cost | 21,956,561 | 25,036,234 | 10,659,233 | 10,992,053 | ||||||
Rent and rates | 113,790 | 254,829 | 1,829,167 | 609,102 | ||||||
Repairs and maintenance | 10,707,722 | 10,355,796 | 5,978,747 | 5,588,939 | ||||||
Insurance | 1,084,249 | 863,050 | 421,229 | 435,889 | ||||||
Other expenses | 6,732,997 | 4,309,092 | 1,578,808 | 1,349,845 | ||||||
859,136,065 | 651,789,320 | 548,589,194 | 363,638,475 | |||||||
6
FLOUR MILLS OF NIGERIA PLC
NOTES TO THE CONSOLIDATED AND SEPARATE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
7 | Selling and distribution | |||||
Group | Company | |||||
Six months ended | Six months ended | |||||
30/09/2023 | *30/09/2022 | 30/09/2023 | *30/09/2022 | |||
N'000 | N'000 | N'000 | N'000 | |||
Salaries and related staff costs | 3,542,410 | 2,856,496 | 2,509,010 | 1,964,624 | ||
Selling expenses | 5,273,982 | 3,404,089 | 3,586,578 | 3,128,703 | ||
Advertisement | 2,961,267 | 1,678,146 | 2,367,231 | 1,500,144 | ||
11,777,659 | 7,938,731 | 8,462,819 | 6,593,471 | |||
8 | Administrative expense | |||||
Group | Company | |||||
Six months ended | Six months ended | |||||
30/09/2023 | *30/09/2022 | 30/09/2023 | *30/09/2022 | |||
N'000 | N'000 | N'000 | N'000 | |||
Audit fee | 209,235 | 214,672 | 102,847 | 112,684 | ||
Bank charges | 2,145,146 | 1,035,515 | 1,527,092 | 742,990 | ||
Computer related expenses | 1,188,489 | 975,182 | 889,922 | 722,192 | ||
Depreciation and amortization | 2,209,243 | 2,022,657 | 1,303,417 | 1,219,182 | ||
Insurance | 257,457 | 278,896 | 65,192 | 51,536 | ||
Legal and professional fees | 1,501,184 | 1,357,101 | 1,295,047 | 1,132,558 | ||
Local and overseas travel | 550,726 | 405,292 | 375,349 | 333,168 | ||
Medical, canteen and welfare expenses | 724,446 | 656,426 | 489,785 | 465,218 | ||
Motor vehicle expenses | 255,333 | 226,040 | 130,963 | 116,637 | ||
General administrative expenses | 2,930,110 | 2,210,967 | 384,911 | 191,865 | ||
Penalties, fines and non recoverable taxes | 379,697 | 308,419 | 258,201 | 179,400 | ||
Power costs | 400,690 | 293,971 | 185,438 | 142,269 | ||
Postage, telephone and cables | 55,957 | 25,338 | 32,081 | 18,741 | ||
Printing and stationery | 99,570 | 51,569 | 46,514 | 33,669 | ||
Rent and rates | 138,802 | 139,083 | 84,248 | 90,673 | ||
Repairs and maintenance | 1,037,799 | 620,836 | 470,551 | 297,312 | ||
Salaries, wages and other staff costs | 10,305,717 | 6,726,667 | 7,302,309 | 4,358,146 | ||
Security services | 376,262 | 321,266 | 53,118 | 69,933 | ||
Subscriptions and donations | 423,608 | 219,627 | 361,265 | 136,876 | ||
25,189,471 | 18,089,524 | 15,358,250 | 10,415,049 | |||
9 | Net operating gains and (losses) | Group | Company | |||
Six months ended | Six months ended | |||||
30/09/2023 | *30/09/2022 | 30/09/2023 | *30/09/2022 | |||
Fee earned | N'000 | N'000 | N'000 | N'000 | ||
1,382,355 | (621,223) | 80,093 | (182,905) | |||
Rent received | 332,308 | 285,770 | 55,719 | 78,531 | ||
Insurance claims | 229,844 | 94,964 | 31,356 | 29,595 | ||
Income on government grant | 5,186,712 | 6,191,274 | 721,152 | 1,740,927 | ||
Sundry (loss)/income | 622,273 | 1,742,605 | (1,099,314) | 1,400,413 | ||
(Loss)/ profit on disposal of fixed assets | (457) | 65,980 | (11,402) | 47,706 | ||
Foreign exchange loss | (51,216,712) | (19,736,643) | (29,206,314) | (8,758,320) | ||
(43,463,677) | (11,977,273) | (29,428,710) | (5,644,053) | |||
7
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Flour Mills of Nigeria plc published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 10:38:41 UTC.
