Event

Starting the 2025 fiscal year, Flour Mills Nigeria Plc (“the Group”) demonstrated an impressive financial performance, delivering substantial revenue growth in Q1 2025, and also reported a net profit for the period, a stark contrast to the net loss reported in Q1 2024, despite the prevailing macroeconomic headwinds.

Revenue soared by 67% year-on-year to N763.19 billion (Q1 2024: N456.38 billion), driven by sustained volume growth and strategic pricing initiatives. This dual engine of growth propelled a broad-based segmental expansion.

Outlook

In light of Q1 2025’s stellar revenue performance and our expectations of sustained volume growth, and price adjustment, we revise our revenue projection for FY 2025 to N3.15 trillion (previous: N2.96 trillion).

While we maintain our HOLD recommendation for the stock, we have upgraded our fair value for the stock to N45.22 (previous: N39.62). At the current price of N44.80, our fair value presents a total return of 14% (inclusive of dividend yield).

Please follow the link “Flour Mills of Nigeria Q1 2025 – Rebound to Net Profit Sustains Optimism” to view the whole report.                                                                         

Thank you.