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Flour Mills of Nigeria Plc FY 2013 financial results presentation

Flour Mills of Nigeria Plc FY 2013 financial results presentation

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Flour Mills of Nigeria Plc FY 2013 financial results presentation Presentation Transcript

  • 1. Flour Mills of Nigeria Plc FY 2012/13 Results Presentation www.fmnplc.com
  • 2. Food Agro-allied Logistics & Support Other Subsidiaries Products & services  Branded consumer goods: – Pasta – Noodles – Semovita – Goldenvita – Sugar – Rice – Edible oils – Snacks  Branded intermediate products: – Flour – Soft flour – Confectionery flour – Sugar – Edible oils  Fertilizer blending and distribution  Domestic cultivation of – Sugarcane – Soybean – Maize – Rice – Oil Palm  Processing of – Sugarcane – Soybean – Maize – Rice – Oil Palm – Cassava  Oil seed crushing and refining  Animal feeds  BAGCO packaging – Flexible packaging – Woven polypropylene  Transportation – Golden transport fleet of 600+ owned trucks  Logistics  Power generation – 100 MW capacity  Port operations – 5 dedicated berths in Apapa  UNICEM cement: – 2.5 million MT integrated cement plant 2 A Related Portfolio of Vertically Integrated Activities
  • 3. 3 Flour Mills of Nigeria Plc (Parent Co) Northern Nigeria Flour Mills Plc 52.6% Nigerian Eagle Flour Mills Limited 51% Golden Pasta Division 100% Golden Noodles Co., Ltd 100% Golden Sugar Company Limited 100% Golden Transport Co., Ltd 100% Golden Shipping Co., Ltd 100% Apapa Bulk Terminal Limited 100% Premier Feed Mills Co., Ltd 62% Kaboji Farms Limited 100% Flour Mills Registrars Limited 100% UNICEM 28.15% Food businesses Agro-allied businesses Logistics & Support Associate Rom Oil Mills Pty Ltd 90% Golden Fertilizer Division 100% Group structure Niger Mills Co. Ltd and Nigerian Bag Manufacturing Co Plc have now been merged into the parent company (Flour Mills of Nigeria Plc) Real Estate 100% Other Agro Thai Farms International Limited 100%
  • 4. Recent Developments  Firm focus on food and agro-allied businesses  Niger Mills Co. Ltd and Nigerian Bag Manufacturing Co Plc. have now been merged into the parent company – Increased efficiencies and cost savings – Revenues and costs of these two subsidiaries are reflected in the company accounts for this year only  Flour Mills of Nigeria Plc. enters the MSCI Frontier Markets Index (effective from 31 May 2013)
  • 5. Review – Strategic Achievements in 2012/13 Food  Moving up the value chain with focus on introducing higher margin retail products, such as snacks  Commissioning of three new flour mills in Apapa, Lagos  Commissioning of new 350,000 MT pasta factory in Ogun State  Commissioning of new state-of-the-art 750,000MT sugar refinery in Apapa, Lagos  Remodeling route to market to deliver better customer and consumer focus Agro Allied  Rapid scale-up of the edible oils business  Expanded capacity at Premier Feed Mills  Ramp-up cultivation of domestically grown sugarcane, oil palm, maize, soy beans, rice Other Subsidiaries  Focus on local manufacturing
  • 6. FY 2012/13 Results  Total revenues grew 16.9% year/year  Excluding actuarial gains, and despite of higher input costs, after-tax profit was in line with previous year  Higher selling and distribution expenses due to increased marketing activities and expanded sales- force (to better support growth)  Proposed dividend of Naira 2.00 per share, up 25% year/year (Naira 000) 31.03.13 31.03.12 % Change Revenue 301,941,329 258,268,251 16.9 Gross Profit 38,010,122 39,708,521 -4.3 Profit before Tax 11,165,431 11,803,161 -5.4 Total Comprehensive Income* 7,761,883 8,146,715 -4.7 * Total comprehensive income includes actuarial gains of Naira 35m in 2013 and of Naira 385m in 2012.
  • 7. FY 2012/13 Revenues by Segment  Revenue growth driven by food (+30.1% year/year)  Excluding cement importation, total revenues grew 32.3% year/year  Strong revenue growth was also seen in agro-allied and packaging (Naira 000) 31.03.13 31.03.12 % Change Foods 230,794,934 177,360,944 30.1 Cement 899,324 30,675,272 -97.1 Agro-allied 50,833,404 33,206,988 53.1 Packaging 18,545,875 15,770,933 17.6 Port Operations 510,886 688,114 -25.8 Others 356,910 566,000 -36.9 TOTAL 301,941,333 258,268,251 16.9 (Segment revenue represents revenue generated from external customers. There were no inter segment sales in the current year)
  • 8. FY 2012/13 Revenues by Segment  94% of sales now from food and agro-allied businesses  Cement import business ceased (small residual sales were seen during the year) 77% 0% 17% 6% 0% 0% Foods Cement Agro-allied Packaging Port Operations Others
  • 9. FY 2012/13 Profit by Segment (Naira 000) 31.03.13 31.03.12 % Change Food 10,443,541 8,841,572 18.1 Cement -506,725 3,490,031 n/a Agro-allied 1,135,836 805,935 40.9 Packaging 1,072,876 1,378,009 -22.1 Port Operations 32,357 153,301 -78.9 Others 25,539 1,539 1559.5 TOTAL 12,203,424 14,670,387 -16.8  Food segment profit rose 18.1% year/year, driven by volumes and margins  Losses on cement importation activities are related to the winding-up of this business  Excluding cement importation activities, PBT rose 13.7% year/year Segment profit represents the profit earned by each segment without allocation of share of profit of associates, IFRS adjustment and income tax expense
  • 10. FY 2012/13 Profit Margins by Segment Segment profit represents the profit earned by each segment without allocation of share of profit of associates, IFRS adjustment and income tax expense -70.0 -60.0 -50.0 -40.0 -30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 Food Cement Agro-allied Packaging Port Operations FY 2012/13 margin % FY 2011/12 margin %
  • 11. FY 2012/13 Balance Sheet (N 000 000) 31.03.13 31.03.12 31.03.11 Non-Current Assets 171,279 135,878 89,867 Current Assets 108,968 96,700 73,105 Total Assets 280,247 232,578 162,972 Non-Current Liabilities 81,827 72,347 53,525 Current Liabilities 114,526 78,517 59,848 Shareholder’s Equity 83,894 81,714 49,599  Sharp rise in property, plant and equipment (2013: N 144.3bn vs. 2011: N 73.3bn) indicative of on- going investment in productive assets (new mills in Apapa; Agbara factory in Ogun State)  Year-end cash and bank balances of N21.8bn
  • 12. FY 2012/13 Cash Flow (Naira 000) 31.03.13 31.03.12 Net Cash generated by Operating Activities 18,661,551 6,671,123 Net Cash used in Investing Activities 34,134,822 47,167,287 Net Cash generated by Financing Activities 22,665,823 34,071,403 Net Cash Flow 7,192,552 (6,424,761)  Strong improvement in cash-flow generation  180 % rise in cash generated from operating activities  Positive free cash-flow of N 7.2bn (vs. negative cash-flow in 2012)
  • 13. Outlook – Strategic Objectives for 2013/14 Food  Consolidation of leading market position  Further strengthening the sales force  Expanding distribution network Agro Allied  Completion of Rom Oil Mills Ltd factory expansion  Development of plantations
  • 14. Conclusion  Strong focus on core business: – Ongoing investment in productive assets – Ongoing investment in distribution – Focus on margins – 94% of sales now from food and agro-allied segments  Excluding discontinued cement importation business, results showed strong progression across the board  Almost three-fold increase in cash generated from operating activities  Group now generating positive free cash-flow  Well positioned to benefit from continued ramp-up of recently commissioned plant  Flour Mills of Nigeria Plc enters the MSCI Frontier Markets Index
  • 15. DISCLAIMER This document is being issued by Flour Mills of Nigeria Plc (“FMN”) and is for private circulation only. The information contained herein does not constitute an offer to sell or the solicitation of any offer to buy any securities and or derivatives and may not be reproduced, distributed or published by any recipient for any purpose without the prior written consent of FMN. The information and opinions contained in this document are for background purposes only, and do not purport to be full or complete, nor does this document constitute investment advice.