With growing cost of sales,
The Flour processing company on the
The losses reported by
The audited results revealed a 34.8per cent increase in
Cost of sales witnessed an increase at
Cost of sales in Apapa factory rose by 36.3 per cent to N99.56billion in 2022 from N73.02billion in 2021, while Ikeja factory witnessed a significant increase of about 49 per cent in its cost of sales to N6.99billion in 2022 from N4.7billion in 2021.
In addition, the company factory in Sagamu reported a 14.6 per cent increase in cost of sales to N18.3billion in 2022 from N15.98billion in 2021.
However, the company closed the 2022 financial year with N136.43billion revenue, 24 per cent increase from N109.59billion in 2021, driven by revenue generated from the company's factory in Apapa.
Revenue generated at the company's Apapa operational factory rose by 28 per cent to N108.8billion in 2022 from N85.02billion in 2021.
The Ikeja segment manufactures paste/noodles and the Sagamu segment manufactures Paste, while Apapa segment manufactures Flour, Semo, Wheat mean, Brown flour and Baker's delight flour.
On the backdrop of increase in cost of sales, the company's gross profit dropped by 25.9 per cent to N11.57billion in 2022 FY from N15.62billion in 2021 FY.
Although the management was prudent in its total operating expenses and finance cost as both dropped by 11 per cent and 9.6 per cent, respectively.
The board at the meeting recently resolved to recommend the cancellation of its unissued shares to the shareholders at the next Annual General Meeting in compliance with the provisions of CAMA 2022 and the public notice of the
While commenting on the company's full year 2021 financial year, the Managing Director,
"We remain committed to ensuring the supply of affordable nutritious food products to Nigerians, and we continue to assure our shareholders of long-term profitable returns from
The company had maintained that the future of its business would be shaped by a continued investment in innovative product development, advanced technology infrastructure and operational efficiency.
Meanwhile, the stock price of
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