FLOURMILL posts mixed-results for 9 months 2019   

Jan 30 (Lagos) - Jan 30 (Lagos) - Flour Mills of Nigeria Plc ( FLOURMILL ) reported its 9 month results ended Dec 31 2018 to public and NSE.

Revenue declined to N 400 billion in April-Dec 2018 from N 427 billion in the same period of 2017.

Gross Profit declined to 46.5 billion from 56 billion.

Profit before tax declined to N 11.27 billion in 2018 from N 19.5 billion in 2017.

These are disappointing results from FLOURMILL especially after their rights issue. 

Total equity increased to N 152 billion at end of 2018 from n 150.6 billion at end of 2017, thats the positive from these results and that means the Company is likely to maintain its dividend at the end of their financial year which is in March. 

Another big positive is the sharp decline in debt which is a result of the rights issue. 

The stock is likely to react negatively to these results but if it reacts too much, then smart investors should prepare to position. Already the stock has sold off more than 50% in the last 6-7 months. 

The stock is currently trading at N 19.40 per unit at the Nigerian Stock Exchange in Lagos. 

reporting for easykobo.com on Wednesday, Jan 30 2019 from Lagos, Nigeria
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