Flour Mills of Nigeria Plc has stated an 85.71 percent reduction in the income of its company.
The financial statement for the six months to September 2018, which was made accessible to the Nigerian Stock Exchange, displayed that the group’s profit after tax, dropped from N9.35bn in the same period in 2017.
The firm, in a statement on Friday, said the decline in profit was as a result of a drop-in sales volume hastened by the obstinate traffic challenges in Apapa.
The Group Managing Director, Flour Mills of Nigeria, Mr Paul Gbededo, said, “Operations in Apapa continues to suffer major hindrances in traffic and logistics challenges.
He added that the group, however, improved its market share in some product groups in a slightly inspiring environment with lower consumer spending.
According to the report, the group recorded a 49 per cent increase in selling and circulation expenses to N4.13bn in the six months to September 2018 from N2.77bn during the same period in 2017.
The report said the group recorded a six percent growth in investment income of N290m, as against the N270m recorded in the same period of 2017.
It said the growth was as a result of short-range investments.
The group recorded a 31 percent drop in its finance cost from N16.27bn in the second quarter of 2017 to N11.23bn in Q2 2018.
Gbededo said, “In the face of gritty economic challenges and a difficult operating ground, we continue to chase our growth plan to gain market share in all key product sections.
“With improved marketing and promotional activities for most of the key food businesses, we imagine new gains in the remaining part of the year, as we continue to focus on advanced products that deliver on great consumer experience.”