Flour Mills posts 80% rise in nine-month profit

Flour Mills of Nigeria Plc recently announced a remarkable 80 per cent increase in its profit for the nine months ending on December 31, 2017. Despite a 4% decrease in revenue year-on-year, the company's pre-tax profit reached an impressive 19.5 billion during this period. John Coumantaros, the Chairman of Flour Mills of Nigeria, appeared on CNBC Africa to dissect the reasons driving this significant growth and shed light on the strategic decisions that shaped these financial results. During the interview, Coumantaros attributed the success to exceptional management practices, strategic planning, and a focused approach to growth. He highlighted the company's commitment to maintaining discipline, even in challenging economic conditions, which allowed them to not only sustain their business operations but also expand their market share. Additionally, he emphasized the importance of implementing a rights issue to reduce the cost of debt, which has been a major hindrance with interest rates exceeding 20%. According to Coumantaros, these actions have positioned Flour Mills of Nigeria for sustained growth and profitability in the future. One of the key factors contributing to the company's success has been its ability to navigate through tough times by efficiently managing costs and streamlining operations. Coumantaros stressed the significance of maintaining a lean and efficient business model to drive profitability despite revenue challenges. This approach, coupled with a focus on market expansion and innovation, has enabled Flour Mills of Nigeria to thrive amidst economic uncertainties. Furthermore, the strategic decisions undertaken by the company, such as the rights issue to lower debt costs, indicate a forward-thinking approach to financial management. By proactively addressing high debt burdens and seeking ways to enhance operational efficiency, Flour Mills of Nigeria is well-positioned to capitalize on future growth opportunities. Coumantaros' emphasis on long-term sustainability and continuous improvement underscores the company's commitment to delivering value to its stakeholders and ensuring steady progress. In conclusion, Flour Mills of Nigeria's impressive financial performance reflects a combination of prudent financial management, strategic foresight, and operational excellence. The 80% increase in nine-month profit signifies the company's resilience and ability to adapt to market dynamics, setting a solid foundation for future success. With a clear vision and a focus on driving sustainable growth, Flour Mills of Nigeria is poised to maintain its competitive edge and deliver value to shareholders in the years to come.