Flour Mills dissolves 6 dormant subsidiaries, emerges biggest feeds dealer
Flour Mills of Nigeria Group has dissolved and de-registered six dormant subsidiaries as part of its restructuring and rationalisation initiatives.
The six subsidiaries are Pure Oil Mills Limited, Western Cement Limited, Burham Cement Limited, FMN Agro Allied Ventures Nigeria Limited, Southern Star Shipping Company Nigeria Limited, and Sovereign Foods Limited.
This was disclosed by John G. Coumantaros, chairman, Flour Mills Plc, at the annual general meeting of the Fast-Moving Consumer Goods (FMCGs) firm held last Thursday in Lagos.
“These companies were dissolved to optimise cost by maintaining a lean structure, improving synergy and enhancing efficiencies,” said Coumantaros, in his statement to shareholders.
According to him, Flour Mills’ subsidiary Premier Feed Mills sold over 400,000 tons of animal feed for the first time in history, surpassing the prior year sales with a growth of 25 percent, representing the largest single company sales in Nigeria, while placing ‘Top Feeds’ as the number one brand in the country.
Flour Mills has metamorphosed into one of the most diversified businesses in Nigeria, having subsidiaries such as Golden Sugar, Agro Allied Farms Sunti Limited, Agri Syrups Limited (Shao Farm) and Thai Farm International Limited, Agri Palm Limited, and Rom Oil Mills Limited. Others include Premier Feed Mills, Kaboji Farms, Golden Fertilizer and Golden Agri Inputs, Bagco, Golden Transport & Logistics, and Apapa Bulk Terminal Limited.
According to Coumantaros, the Group would soon install a sorghum kilning and milling process at its Kano mills, having modified the silo facility in preparation to receive locally grown wheat. He further said a decision had been taken to add a sorghum kilning and milling process in Kano, which would be ready for commissioning early in 2017, adding that a new spaghetti line would be commissioned at Agbara, Ogun State, later this year to raise production capacity.
Like most manufacturers, Flour Mills was hard hit by scarcity of foreign exchange, which made importation of its inputs difficult. But the firm, surprisingly, was able to navigate through the hurdles, raising revenue by 11 percent by year ending March 31, 2016. Revenue rose from N308.8 billion by year ending March 31 2015 to N342.6 billion by the corresponding period of 2016.
Profit before tax rose 49 percent to N11.5 billion in 2016 from N7.7 billion in 2015, while retained profits was N13.9 billion as against N8.9 billion in the year ending March 31, 2015.
“The first phase of our Group’s investment in local sugar production will produce over 100,000 metric tons of sugar, create over 15,000 new jobs, generate 10 mega watts of excess electricity from cane fibre, produce animal feeds and fertilizer from the sugar molasses by-products and save over $50 million in foreign exchange for the nation annually,” said the chairman, while referring to Flour Mills’ Golden Sugar Company, located at Sunti, Niger State.
ODINAKA ANUDU