With the vision of becoming the market leader in the buisness the Flour Mills of Nigeria Plc (FMN) has boosted the production of local rice in the country.
Group Managing Director of theFMN, Paul Gbededo, disclosed the fact for the figures the company has given at The Nigerian Stock Exchange to explain its 2014 financials held in Lagos.
Gbedebo unveiled that the company aims to achieve this by bringing local farmers and others in the supply chain.
He said that the Nigeria needs about 4 million metric tonnes of rice and about 1 million acres of land to achieve that. For the same they are trying to aggregate the local farmers and other in the supply chain.
The company started its rice buisness in 2009 when they used to import the par boiled rice.In 2010 they noticed a rice mill established in the country which has a capacity to turn the brown rice semi-processed rice into par-boiled rice.
He also bring a point of tariff on importation.Since the country has lower taxes on importation as compare to local rice so the importation is much more cheaper than the local supply of rice.Also he mentioned that the importation provides good profits.
FMN is strongly depend on: the Food, Agro-Allied and the Support Services.
The declined in the profitsin FY 2013-14 is due to low commencement year results of Golden Sugar Company Limited which is fully owned by FMN.
The company’s profit after- tax declined by 28.8 per cent to N5.37 billion from N7.54 it recorded in the comparable period of 2013, while its revenue grew by 10 per cent to N332.14 billion from N301.94 billion in 2013.
For getting the improved results the company has decided to give 210 kobo per share and a bonus of one for every 10 shares.
He said that to overcome the profit declines by the Golden Sugar Company Limited they have reconstructed and invested $250 million to a 750,000 metric tons per annum sugar refinery.
He pointed out that 2014 is a year of transition and steady progress is expected, saying that Golden Sugar and the packaging business are well positioned for future progress.
He added, “FMN continues to strategically invest in large scale commercial farming to support its food processing units with locally produced raw materials.”
1NGN = US $162.73