FLOUR MILLS OF NIGERIA : QUARTER 2 - FINANCIAL STATEMENT FOR 2023

FLOUR MILLS OF NIGERIA PLC

CONDENSED CONSOLIDATED AND SEPARATE INTERIM FINANCIAL STATEMENTS

30 SEPTEMBER 2022

FLOUR MILLS OF NIGERIA PLC

UNAUDITED FINANCIAL RESULTS FOR SIX MONTHS ENDED 30 SEPTEMBER 2022

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 2022 as follows:

Revenue

Cost of sales

Gross profits

Selling and distribution expenses Administrative expenses

Impairment loss on trade and intercompany receivables Net operating gains /(losses)

Operating profit

Finance income

Finance costs

Profit before tax

Tax expense

Profit for the period

Cashflow hedge

Related tax

Total comprehensive income

Profit attributable to:

Owners of the Company

Non-controlling interests

Total comprehensive income attributable to: Owners of the Company Non-controlling interests

Earnings per share - Basic (kobo)

Earnings per share - Diluted (kobo)

Explanatory Notes:

Group		Company
Six months ended	Six months ended
30/09/2022	30/09/2021	30/09/2022	30/09/2021
N'000	N'000	N'000	N'000
720,576,029	522,821,430	402,357,789	355,056,160
(651,789,320)	(468,406,319)	(363,638,475)	(322,682,133)
68,786,709	54,415,111	38,719,313	32,374,027
(7,938,731)	(7,380,137)	(6,593,471)	(6,131,674)
(18,089,524)	(15,461,695)	(10,415,049)	(9,761,313)
(455,363)	413,137	785,675	669,533
(11,977,273)	(7,931,489)	(5,644,053)	(7,614,261)
30,325,819	24,054,928	16,852,416	9,536,312
378,180	754,830	2,248,157	3,022,107
(22,320,998)	(9,327,056)	(11,586,354)	(5,208,972)
8,383,001	15,482,702	7,514,219	7,349,447
(2,682,979)	(4,954,464)	(2,404,926)	(2,351,823)
5,700,021	10,528,237	5,109,293	4,997,624
3,285,142	-	3,374,133	-
(821,286)	-	(843,533)	-
8,163,878	10,528,237	7,639,893	4,997,624
8,073,973	9,983,105	5,109,293	4,997,624
(2,373,952)	545,132	-	-
5,700,021	10,528,237	5,109,293	4,997,624
10,537,830	9,983,105	7,639,893	4,997,624
(2,373,952)	545,132	-	-
8,163,878	10,528,237	7,639,893	4,997,624
197	243	125	122
197	243	125	122

Similar to the performance over the last few quarters our business has been able to sustain the strong performance in spite of the increasingly difficult terrain and uncertainities. Management remains optimistic that with continued efforts in sales and marketing activities geared at boosting our top line while keeping the costs under control we should be able to sustain the good performance for the remaining 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 Stock Exchange. During the period under review, the Directors and employees of the company complied with the Nigerian Stock 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 Odion A. Umolu

Company Secretary / Director, Legal Services

FRC/2013/NBA/0000003687

26 October 2022

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 2022
			Group								Company
		3 months ended	6 months ended	3 months ended	6 months ended				3 months ended	6 months ended	3 months ended	6 months ended
		30/09/2022	30/09/2022	*30/09/2021	*30/09/2021			30/09/2022	30/09/2022	*30/09/2021	*30/09/2021
	Note	N'000	N'000	N'000	N'000				N'000	N'000	N'000	N'000
Revenue	5	380,974,715	720,576,029	289,118,185	522,821,430			209,122,631	402,357,789	205,138,740	355,056,160
Cost of sales	6	(345,436,413)	(651,789,320)	(260,401,871)	(468,406,319)				(189,917,845)	(363,638,475)	(186,914,841)	(322,682,133)
Gross profit		35,538,302	68,786,709	28,716,313	54,415,111			19,204,785	38,719,313	18,223,899	32,374,027
Selling and distribution expenses	7	(3,329,530)	(7,938,731)	(4,318,004)	(7,380,137)			(3,128,694)	(6,593,471)	(3,484,340)	(6,131,674)
Administrative expenses	8	(8,015,991)	(18,089,524)	(8,864,860)	(15,461,695)			(4,003,642)	(10,415,049)	(5,480,909)	(9,761,313)
Impairment loss on trade and intercompany
receivables		203,747	(455,363)	1,812,542	413,137			605,583	785,675	540,470	669,533
Net operating (losses) and gains	9	(9,355,843)	(11,977,273)	(4,805,861)	(7,931,489)				(4,686,800)	(5,644,053)	(4,506,999)	(7,614,261)
Operating profit		15,040,685	30,325,819	12,540,130	24,054,928			7,991,231	16,852,416	5,292,121	9,536,312
Finance income		184,897	378,180	457,231	754,830			1,027,308	2,248,157	1,430,881	3,022,107
Finance costs		(14,170,956)	(22,320,998)	(4,776,128)	(9,327,056)			(7,008,271)	(11,586,354)	(2,707,949)	(5,208,972)
Profit before tax		1,054,626	8,383,001	8,221,233	15,482,702			2,010,269	7,514,219	4,015,053	7,349,447
Income tax expense	10	(850,519)	(2,682,979)	(3,139,097)	(4,954,464)				(1,028,663)	(2,404,926)	(1,518,225)	(2,351,823)
Profit for the period		204,107	5,700,021	5,082,135	10,528,237			981,606	5,109,293	2,496,828	4,997,624
Cashflow hedge		2,863,260	3,285,142	-	-			2,904,347	3,374,133	-	-
Related tax		(715,815)	(821,286)	-	-				(726,087)	(843,533)	-	-
Total comprehensive income		2,351,552	8,163,878	5,082,135	10,528,237			3,159,866	7,639,893	2,496,828	4,997,624
Profit attributable to:
Owners of the Company		2,442,121	8,073,973	5,202,751	9,983,105			981,606	5,109,293	2,496,828	4,997,624
Non-controlling interests		(2,238,014)	(2,373,952)	(120,616)	545,132				-	-	-	-
		204,107	5,700,021	5,082,135	10,528,237			981,606	5,109,293	2,496,828	4,997,624
Total comprehensive income attributable to:
Owners of the Company		4,589,566	10,537,830	5,202,751	9,983,105			3,159,866	7,639,893	2,496,828	4,997,624
Non-controlling interests		(2,238,014)	(2,373,952)	(120,616)	545,132				-	-	-	-
		2,351,552	8,163,878	5,082,135	10,528,237				3,159,866	7,639,893	2,496,828	4,997,624
Earnings per share - Basic (kobo)	11	60	197	127	243			24	125	61	122
Earnings per share
Earnings per share - Diluted (kobo)		60	197	127	243			24	125	61	122

*Due to the acquisition of Honeywell Flour Mills Plc with the FMN Group during the year (Note 26), the 2022 numbers are those of the merged entities while the 2021 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 2022
		Group			Company
		30/09/2022	*31/03/2022	30/09/2022	*31/03/2022
	Note	N'000		N'000			N'000		N'000
Assets
Non-current assets
Property, plant and equipment	13	336,772,464	226,840,392	109,125,472	100,300,597
Right of use assets		15,675,102	15,720,081	2,514,632	2,692,372
Biological assets	14	41,394	73,474	-	-
Intangible assets	15	398,887	369,182	169,125	296,022
Investment properties	16	1,374,888	1,427,443	51,707	52,735
Goodwill	12	4,148,022	4,148,022	1,876,816	1,876,816
Investment in subsidiaries	17	-	-	46,355,534	45,755,534
Available for sale investments	18	34,000	34,000	34,000	34,000
Deferred tax assets		6,464,418	6,245,238	-	-
Long term loans receivable	19	40,995	37,551	21,380,047	69,962,336
Prepayments	22	-		-		-		-
Total non-current assets		364,950,170	254,895,383	181,507,332	220,970,412
Current assets
Inventories	20	337,617,959	284,462,821	182,578,754	155,480,370
Biological assets	14	3,324,637	757,085	-	-
Trade and other receivables	21	61,663,539	39,900,930	48,064,488	43,782,434
Derivative assets		2,459,539	84,480	2,459,534	84,480
Prepayment & deposit for import	22	100,493,555	55,289,689	89,535,428	47,025,998
Cash and cash equivalents	23	59,208,837		31,621,421		30,473,065		20,273,882
Total current assets		564,768,065		412,116,426		353,111,269		266,647,164
Total assets		929,718,235	667,011,809	534,618,601	487,617,576
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 reserves		(101,456)	(101,456)	(101,456)	(101,456)
Hedging reserve		2,003,708	(1,281,434)	2,092,699	(1,281,434)
Retained earnings		110,384,462		111,101,724		94,937,154		98,619,096
Equity attributable to owners of the Company		189,714,356	187,146,475	174,356,038	174,663,847
Non-controlling interest		6,384,264		8,758,216		-		-
Total Equity		196,098,620	195,904,691	174,356,038	174,663,847
Liabilities
Non-current liabilities
Borrowings	25	196,691,032	114,810,880	106,334,697	70,976,427
Lease liabilities		20,613,331	17,654,283	515,465	590,079
Retirement benefit obligation		11,478,128	10,268,526	8,588,405	7,815,524
Long service award		3,983,601	3,591,011	3,224,623	2,926,253
Deferred taxation		21,314,582	15,022,760	14,818,277	14,217,140
Deferred income		25,673,787		16,173,241		3,111,773		3,807,687
Total non-current liabilities		279,754,460	177,520,701	136,593,240	100,333,110
Current liabilities
Bank Overdraft	23	18,267,799	9,937,833	11,091,839	4,563,004
Trade and other payables	24	264,824,819	194,591,771	117,792,941	155,202,371
Borrowings	25	119,697,351	34,016,762	64,135,880	19,622,399
Lease liabilities		-	-	-	-
Current tax payable		3,353,397	14,411,961	2,375,707	7,250,478
Deffered income		7,869,690	7,645,503	1,310,461	2,355,474
Derivative liability		103,805	1,898,421	62,718	1,898,421
Dividend payable		11,588,538	2,804,900	11,588,538	2,804,900
Customer deposits		28,159,756		28,279,266		15,311,239		18,923,572
Total current liabilities		453,865,155		293,586,417		223,669,323		212,620,619
Total liabilities		733,619,616		471,107,118		360,262,563		312,953,729
Total equity and liabilities		929,718,235		667,011,809		534,618,601		487,617,576
		-		-			-		-

The financial statements were approved by the board of directors and authorised for issue on 26 October 2022. They were signed on its behalf by:

Omoboyede O. Olusanya		Anders Kristiansson
Group Managing Director		Group Chief Finance Officer
FRC/2017/IODN/00000017634	0.16	FRC/2014/ANAN/00000009819

*Due to the acquisition of Honeywell Flour Mills Plc with the FMN Group during the year (Note 26), the '30 September 2022' numbers are

those of the merged entities while the '31 March 2022' numbers are those of the Group prior to the acquisition.2