Flour Mills of Nigeria offers N9.225 billion as dividends to its shareholders

The Board of Directors of Flour Mills of Nigeria Plc has put forward a proposal for a final dividend amounting to N9.225 billion for the financial year ending on March 31, 2023. This proposal equates to a dividend of N2.25 for each unit of 50 Kobo ordinary shares held by the company’s shareholders for the aforementioned financial year. The corporate action announcement containing this information was submitted to the Nigerian Exchange Limited (NGX) and was obtained by Infostride News.

It is essential to note that this proposed dividend is subject to approval by the company’s shareholders. Moreover, appropriate withholding tax will be disbursed to shareholders whose names are listed in the Register of Members as of the close of business on Tuesday, October 13, 2023.

As specified in the company’s statement, dividends will be electronically distributed to shareholders whose names appear on the Register of Members as of October 13, 2023, and who have completed the e-dividend registration process while authorizing the Registrars to deposit their dividends directly into their bank accounts.

In light of this, shareholders who have not yet completed the e-dividend registration process are advised to access the Registrar’s E-Dividend Mandate Activation Form, which can also be found on the Registrar’s website. Additionally, shareholders holding dividend warrants and share certificates that have either remained unclaimed or have not been presented for payment or validation are encouraged to complete the e-dividend registration or get in touch with the Registrars.

An Overview of Flour Mills of Nigeria Plc’s Financial Performance

Flour Mills of Nigeria Plc, a prominent foods and agro-allied company, reported a 5.32% increase in profit, reaching N29.504 billion by the end of the financial year in March 2023. This represents a growth from the N28.015 billion recorded during the same period in 2022.

In its Annual Report, which was filed with the Nigerian Exchange Limited, the organization disclosed a remarkable 32% surge in its revenue, moving from N1.163 trillion to N1.539 trillion.

However, it’s worth noting that the company also reported unaudited financial results for the three months ending on June 30, 2023, wherein they experienced a loss of N9.337 billion. This is in stark contrast to the N5.812 billion gain recorded in 2022.

The accompanying notes in FMN Plc’s financial report indicate that the substantial drop in operating profit was largely attributed to a foreign exchange loss amounting to N22.5 billion during the last quarter, which ultimately resulted in a loss before tax of N9.3 billion.

The report goes on to state, “Without the devaluation of the exchange rate, the operating profit would have increased by 52%. Management remains optimistic that with the current government monetary policies aimed at stabilizing the forex market, and the ongoing efforts in sales and marketing activities geared towards boosting our top line while keeping costs under control, we expect to see significant improvement in profit generation in the coming period.”

This demonstrates Flour Mills of Nigeria Plc’s commitment to addressing the challenges it faced and its positive outlook for the future, particularly in light of government policies aimed at stabilizing the foreign exchange market.

In conclusion, Flour Mills of Nigeria Plc is making strides in its financial performance and dividend distribution, exemplifying its dedication to enhancing shareholder value. Shareholders are encouraged to complete the e-dividend registration process to facilitate the seamless distribution of dividends. The company remains confident in its ability to navigate the economic landscape and deliver improved profits in the foreseeable future.