Flour Mills defies negative sentiment impacting FMCG stocks, rises 22% month-to-date 

In its financial results for the period ended June 30, 2024, the company reported a pre-tax profit of N7.36 billion, a significant recovery from the pre-tax loss of N9.33 billion recorded during the same period the previous year.

Although the stock’s price movement and trading volume were stagnant in August following the release of the results, September has seen a notable 22% increase in share price as of the second week.

This rise comes even as FMCG companies in Nigeria continue to grapple with foreign exchange losses caused by the weakening naira.

After the company’s financial report was released on July 31, 2024, its stock took time in August to consolidate before gaining momentum. By the second week of September, the share price had soared more than 20%.

Flour Mills has maintained a solid bullish trend, starting from 2020 and continuing through 2024, even as many FMCG companies in Nigeria have struggled in the stock market this year.

Despite a brief retracement in February 2024 that saw the stock dip to a low of N30.55, it rebounded in May, gaining over 40% through to mid-September.

The stock closed at a high of N54.50 on September 13, with market volume in September reaching 14 million shares—an impressive 70% increase compared to August’s total volume.

The company’s revenue for the first half of 2024 jumped 67% year-over-year, while pre-tax profit rose to N7.36 billion.

Earnings per share also improved, shifting from a negative N2.49 in the first half of 2023 to a positive N1.94 in 2024.

Commenting on the company’s performance, Group Managing Director Boye Olusanya said, “Our consistent execution and growth underscore FMN’s financial and operational resilience.”

“Despite the challenging economic environment, we have solidified our position as a market leader in the food and agro-allied sector, driven by innovative product offerings and efficient operations.”