July 14 (Lagos) - Flourmills of Nigeria Plc (
FLOURMILL ) reported its full year results for financial year ended March 31 2019. The result failed to excite as top line revenue declined and gross profit declined sharply by 22%.
Profit before tax declined sharply to N 10.1 billion in 2018 from N 16.3 billion in 2017.
On a positive note,
FLOURMILL sharply reduced its finance costs by 10 billion during the year, as a result of debt reduction of N 22 billion from the proceeds of rights issue.
FMN has proposed dividend of N 1.20 per unit which is up 20% from previous year's dividend. That is a strong growth in dividend but the dividend yield is still only 7.4% which is hardly inciting for dividend investors given the decline in stock price of Company.
This result which was released by Company is difficult to understand as it states that profit of Company is much higher than profit of the Group. Since Company is part of the group, its difficult to understand. The result shows profit of N 19 billion for the company and N 4 billion for the group. This is audited report so Company should help us in understanding the details so we can become clear in our understanding of the result.
Shares of
FLOURMILL have declined almost 50% from last year's high's which came at beginning of 2018. This annual result shows why investors have been dumping the stock.
Currently the shares trade at N 16.2 per unit.
reporting for easykobo.com on Saturday, July 14 2019 from Lagos, Nigeria