Flour Mills’ Shareholders Endorse N4.92 billion Dividend
The shareholders of Flour Mills Plc have unanimously approved the payment of N1.20k per share dividend, amounting to N4.92 billion for the 2018 financial year. The dividend payment represents a 142% increase compared to the N2.03 billion paid in the 2017 financial period.
The shareholders gave their approval at the company’s recently held Annual General Meeting (AGM).
It is believed that the company increased its dividend payment despite the economic headwinds that challenged key sectors of the country.
Speaking on the dividend, Chairman, Flour Mills, John Coumantaros, Flour Mills’ Board recognises the importance of dividends and the need to generate returns for shareholders, hence, the increase in dividend.
Coumantaros added that the company had continued to make inroads into the Nigerian market, using innovation as a foundation in their quest to delivering quality and creating value for consumers, customers, and key stakeholders.
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For the year ended March 31, 2019, the company’s turnover dropped from N542.67 billion in 2018 to N527.40 billion in 2019. Gross profit dropped from N68.8 billion in 2018 to N53.3 billion in 2019.
More so, profit before tax declined to N10.17 billion in 2019 from N16.54 billion in 2018. After taxes, net profit dropped to N4 billion in 2019 from N13.6 billion in 2018. Consequently, earnings per share dropped from N4.83 in 2018 to N1 in 2019.
From information contained in its financial statement, the company’s finance costs fell by 30% to N22.9 billion in 2019 from N32.7 billion in 2018 and N32.5 billion in 2017.
According to the investor presentation on its website, the company said: “Flour Mills will continue active balance sheet management and the objective is to achieve an additional reduction in finance costs in the current year”.