FLOUR MILLS OF NIGERIA PLC- QUARTER 2 - FINANCIAL STATEMENT FOR 2022

FLOUR MILLS OF NIGERIA PLC

CONDENSED CONSOLIDATED AND SEPARATE INTERIM FINANCIAL STATEMENTS

30TH SEPTEMBER, 2021

FLOUR MILLS OF NIGERIA PLC

UNAUDITED FINANCIAL RESULTS FOR SIX MONTHS ENDED 30 SEPTEMBER 2021

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 30th September 2021 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

Gain/(loss) on 'available for sale' investment

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
30/09/2021	30/09/2020	30/09/2021	30/09/2020
N'000	N'000	N'000	N'000
522,821,430	355,108,997	355,056,160	233,611,010
(468,406,319)	(304,819,008)	(322,682,133)	(204,593,169)
54,415,111	50,289,989	32,374,027	29,017,841
(7,380,137)	(4,405,002)	(6,131,674)	(3,446,056)
(15,461,695)	(13,011,391)	(9,761,313)	(9,036,733)
413,137	(287,655)	669,533	(40,359)
(7,931,489)	(8,853,957)	(7,614,261)	(6,718,165)
24,054,928	23,731,984	9,536,312	9,776,528
754,830	825,950	3,022,107	2,486,083
(9,327,056)	(9,951,022)	(5,208,972)	(5,296,446)
15,482,702	14,606,912	7,349,447	6,966,164
(4,954,464)	(4,674,212)	(2,351,823)	(2,229,173)
10,528,237	9,932,700	4,997,624	4,736,993
-	-	-	-
10,528,237	9,932,700	4,997,624	4,736,993
9,983,105	9,545,445	4,997,624	4,736,993
545,132	387,255	-	-
10,528,237	9,932,700	4,997,624	4,736,993
9,983,105	9,545,445	4,997,624	4,736,993
545,132	387,255	-	-
10,528,237	9,932,700	4,997,624	4,736,993
243	233	122	116
243	233	122	116

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

27th October, 2021

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 2021
			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
		30/09/2021	30/09/2021	30/09/2020	30/09/2020			30/09/2021	30/09/2021	30/09/2020	30/09/2020
	Note	N'000	N'000	N'000	N'000				N'000	N'000	N'000	N'000
Revenue	5	289,118,185	522,821,430	200,530,405	355,108,997			205,138,740	355,056,160	134,909,265	233,611,010
Cost of sales	6	(260,401,871)	(468,406,319)	(175,789,722)	(304,819,008)				(186,914,841)	(322,682,133)	(120,528,487)	(204,593,169)
Gross profit		28,716,313	54,415,111	24,740,683	50,289,989			18,223,899	32,374,027	14,380,778	29,017,841
Selling and distribution expenses	7	(4,318,004)	(7,380,137)	(2,403,521)	(4,405,002)			(3,484,340)	(6,131,674)	(1,874,723)	(3,446,056)
Administrative expenses	8	(8,864,860)	(15,461,695)	(8,096,937)	(13,011,391)			(5,480,909)	(9,761,313)	(5,992,345)	(9,036,733)
Impairment loss on trade and intercompany
receivables		1,812,542	413,137	(253,937)	(287,655)			540,470	669,533	(21,663)	(40,359)
Net operating (losses) and gains	9	(4,805,861)	(7,931,489)	(1,244,980)	(8,853,957)				(4,506,999)	(7,614,261)	(1,166,042)	(6,718,165)
Operating profit		12,540,130	24,054,928	12,741,308	23,731,984			5,292,121	9,536,312	5,326,007	9,776,528
Finance income		457,231	754,830	497,056	825,950			1,430,881	3,022,107	1,079,056	2,486,083
Finance costs		(4,776,128)	(9,327,056)	(5,086,815)	(9,951,022)			(2,707,949)	(5,208,972)	(2,574,576)	(5,296,446)
Profit before tax		8,221,233	15,482,702	8,151,549	14,606,912			4,015,053	7,349,447	3,830,487	6,966,164
Income tax expense	10	(3,139,097)	(4,954,464)	(3,189,478)	(4,674,212)				(1,518,225)	(2,351,823)	(1,507,967)	(2,229,173)
Profit for the period		5,082,135	10,528,237	4,962,070	9,932,700			2,496,828	4,997,624	2,322,520	4,736,992
Gain/(loss) on 'available for sale' investment		-	-	-	-				-	-	-	-
Total comprehensive income		5,082,135	10,528,237	4,962,070	9,932,700			2,496,828	4,997,624	2,322,520	4,736,992
Profit attributable to:
Owners of the Company		5,202,751	9,983,105	5,139,358	9,545,445			2,496,828	4,997,624	2,322,520	4,736,992
Non-controlling interests		(120,616)	545,132	(177,287)	387,255				-	-	-	-
		5,082,135	10,528,237	4,962,070	9,932,700			2,496,828	4,997,624	2,322,520	4,736,992
Total comprehensive income attributable to:
Owners of the Company		5,202,751	9,983,105	5,139,358	9,545,445			2,496,828	4,997,624	2,322,520	4,736,992
Non-controlling interests		(120,616)	545,132	(177,287)	387,255				-	-	-	-
		5,082,135	10,528,237	4,962,070	9,932,700			2,496,828	4,997,624	2,322,520	4,736,992
Earnings per share - Basic (kobo)	11	127	243	125	233			61	122	57	116
Earnings per share
Earnings per share - Diluted (kobo)		127	243	125	233			61	122	57	116

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FLOUR MILLS OF NIGERIA PLC
CONDENSED CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER, 2021
		Group			Company
		30/09/2021	31/03/2021	30/09/2021	31/03/2021
	Note	N'000		N'000			N'000		N'000
Assets
Non-current assets
Property, plant and equipment	13	207,781,125	208,721,490	87,234,426	89,251,566
Right of use assets		17,041,003	16,511,473	3,036,722	2,684,703
Biological assets	14	23,461	30,930	-	-
Intangible assets	15	460,156	646,404	351,772	501,106
Investment properties	16	1,531,526	1,532,553	53,762	54,789
Goodwill	12	4,148,022	4,148,022	1,876,816	1,876,816
Investment in subsidiaries	17	-	-	44,666,634	62,258,329
Available for sale investments	18	27,540	27,540	27,540	27,540
Deferred tax assets		6,989,268	6,974,435	-	-
Long term loans receivable	19	42,726	38,852	46,243,734	62,423,085
Prepayments	22	-		95,971		-		85,317
Total non-current assets		238,044,826	238,727,670	183,491,406	219,163,251
Current assets
Inventories	20	184,832,916	195,449,036	104,369,416	76,980,128
Biological assets	14	1,250,795	376,439	-	-
Trade and other receivables	21	19,877,147	25,825,611	21,394,240	23,160,406
Derivative assets		93,364	621,780	93,727	621,780
Prepayment & deposit for import	22	39,303,373	46,568,933	30,057,286	32,772,245
Cash and cash equivalents	23	52,682,993		37,163,344		36,473,551		27,624,715
Total current assets		298,040,588		306,005,143		192,388,220		161,159,274
Total assets		536,085,414	544,732,813	375,879,626	380,322,525
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		(107,916)	(107,916)	(107,916)	(107,916)
Retained earnings		94,117,059		90,905,674		80,784,973		82,559,069
Equity attributable to owners of the Company		171,436,784	168,225,399	158,104,698	159,878,794
Non-controlling interest		6,933,683		6,388,551		-		-
Total Equity		178,370,467	174,613,950	158,104,698	159,878,794
Liabilities
Non-current liabilities
Borrowings	25	116,358,864	101,764,591	78,456,728	68,598,529
Lease liabilities		15,579,357	14,789,031	751,522	439,742
Retirement benefit obligation		11,527,424	10,396,790	8,934,108	8,067,744
Long service award		4,145,276	3,713,272	3,389,689	3,037,869
Deferred taxation		18,789,949	16,857,129	14,086,410	13,498,453
Deferred income		14,124,928		12,901,940		3,983,963		1,735,080
Total non-current liabilities		180,525,798	160,422,753	109,602,420	95,377,417
Current liabilities
Bank Overdraft	23	331,494	4,000,896	-	-
Trade and other payables	24	94,323,057	120,152,472	49,382,278	77,584,189
Borrowings	25	26,178,919	26,913,425	17,927,693	15,020,385
Lease liabilities		3,162,991	1,919,724	201,465	236,631
Current tax payable		6,819,742	9,481,685	1,972,429	4,690,116
Deffered income		4,280,513	3,997,200	1,295,249	1,093,978
Derivative liability			97,049				49,322
Dividend payable		5,735,470	4,207,541	8,638,447	2,586,437
Customer deposits		36,356,963		38,926,118		28,754,947		23,805,256
Total current liabilities		177,189,149		209,696,110		108,172,508		125,066,313
Total liabilities		357,714,947		370,118,863		217,774,928		220,443,731
Total equity and liabilities		536,085,414		544,732,813		375,879,626		380,322,525
		-	-	-	-

The financial statements were approved by the board of directors and authorised for issue on 27th October, 2021 . They were signed on its behalf by:

Omoboyede O. Olusanya		Anders Kristiansson
Group Managing Director		Group Chief Finance Officer
FRC/2017/IODN/00000017634	0.31	FRC/2014/ANAN/00000009819

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