Flour Mills of Nigeria Plc has announced plans to proceed with the application for an Electric Generation License.
According to a release signed by the company’s secretary, Umolu Joseph noted that new license is in compliance with section 70 (2) of the Electric Power Generation Sector Reform Act. The license will enable Flour Mills to obtain an embedded electricity generation license to operate a 70MW power plant to be located in Apapa.
What this means for the company
Flour Mills will generate more revenue from this power project, boost its bottom-line; also the new power project will also reduce the operating cost of the company. Figures from its full-year ended June 2018 shows it spent N3.7 billion as power cost as compared to N3.2 billion in 2017.
In its recently released financial results for the period ended June 30, 2018, the company’s revenue plummeted from N148 billion in June 2017 to N133 billion in June 2018. Profit before tax also dropped from N6 billion in June 2017 to N5 billion in June 2018. Profit after tax also plummeted from N4 billion in June 2017 to N3.6 billion in June 2018.
Shareholders of the company recently approved the firm’s N2.032 billion total dividend for the 2017 financial year. The food and agro-allied company paid a total N2.03 billion dividend translating to N1.00 per for every 50 kobo share.
Flour Mills of Nigeria Plc was incorporated in September 1960 as a private limited liability company and has been serving the needs of generations of Nigerians ever since. In 1978, FMN became a public limited liability company and its shares were subsequently listed on The Nigerian Stock Exchange.
Flour Mills’ interest in becoming the nation’s leading food business company is furthered by entities operating in agriculture, livestock feed and pasta manufacturing.
The firm currently has over twelve thousand full and part-time employees and has since been steering the green revolution in Nigeria with the use of locally sourced materials to develop and produce unique consumer products for local markets.