FMN Takes Charge In Nigeria’s Manufacturing Sector, Grabs Four Prizes At Brandcom Awards
In Nigeria, food manufacturing stands as a vibrant sector, driven by a fusion of innovation, consumer demand, and entrepreneurial spirit. Despite challenges, including economic fluctuations and infrastructural constraints, the industry is not only weathering the storm but also hitting significant milestones, showcasing resilience in the face of hardship.
From continuously pushing boundaries, leveraging technology, and harnessing creativity to enhance product quality, innovation permeates every aspect of the manufacturing journey. New offerings, novel ingredients, as well as advanced packaging solutions, are other tools driving competitiveness and consumer appeal. A close look at food manufacturing generally reveals that brands in this industry are constantly pushing the boundaries of what is possible.
One such brand is Flour Mills of Nigeria (FMN), and its impact in the food manufacturing industry stands as an outstanding exemplar of success. FMN has made significant contributions to the food manufacturing industry in Nigeria; it plays a vital role in shaping the sector’s growth and development.
The company was incorporated in 1960 as a private limited liability company with a modest paid-up share capital of N1 million and converted to a public company in 1978 with a beneficial interest in the company’s equity held by Nigerian and Overseas shareholders.
FMN is a major producer of essential foods such as flour, pasta, ballfoods, noodles, biscuits, cereals, snacks, edible oils, sugar, and animal feed. Some of its well-known brands include Golden Penny Flour, Golden Penny Semovita, Golden Penny Sugar, Golden Penny Spaghetti, and Golden Penny Noodles.
These products form the backbone of Nigeria’s food industry, serving as staple ingredients in a wide range of dishes consumed by millions of Nigerians every day.
Its operation in the industry has led to the creation of numerous direct and indirect employment opportunities across the country from skilled workers in its manufacturing plants to distributors, retailers, and suppliers along its value chains.
Through partnerships with local farmers, FMN supports small-scale producers and contributes to food security by promoting self-sufficiency in key commodities and sourcing a significant portion of its raw materials locally, particularly wheat, maize, and soybeans.
The company has been at the forefront of innovation in the Nigerian food sector for years. In 2002, it introduced Vitamin A-fortified wheat, launched Nigeria’s first pasta plant in 2005, and kicked off investments in renewable energy in 2019. FMN has continued to expand its operation through strategic partnerships, demonstrating its commitment to innovation and sustainable development in the Nigerian food industry.
In recognition of its drive to promote innovation among others, the company was recognized as the Most Outstanding Food Manufacturing Company Of The Year at the 2023 Brandon Awards, Nigeria’s most prestigious recognition platform in Integrated Marketing Communications held at the prestigious Civic Centre, Victoria Island, Lagos.
The Success of this megabrand did not end here. Golden Penny Soup Festival also won the Most Innovative Brand Engagement Platform of the Year, while Golden Penny Pasta with Most Outstanding Pasta Brand of the Year. Still from the stable of FMN, Golden Penny Noodles won the Fastest growing noodles brand of the year Award.
As part of its commitment to driving food sufficiency in the country, Flour Mills of Nigeria organizes a competition that recognizes and rewards Innovation. The initiative which is in its third edition was established to encourage new ideas, create opportunities, and drive innovations in the food and agro-allied sector in Nigeria and across the continent to impact and promote a sustainable food production system in Nigeria.
Speaking on the initiative, the Group’s Managing Director/CEO, Mr. Boye Olusanya, stated: “The FMN – Prize for Innovation is one of the most practical initiatives in Nigeria designed to drive food self-sufficiency in the country. Through the FMN-PFI, the Group has been able to identify, and empower winners of the Prize such that past winners recorded about 200 percent growth both in their business and financial outlook.”
REMARKABLE GROWTH
FMN recorded stable financial results for the third quarter of 2023, highlighting volume growth, improved profitability, and strong performance across its core business segments.
Gross profit increased by 264% to N125.3 billion compared to the equivalent period of the prior year. Profitability also remained resilient, with profit before tax increasing 29% to N8.5 billion despite a volatile macroeconomic climate and foreign exchange headwinds.
In its largest division, Food, which accounts for over 60% of Group revenue, FMN recorded standout performance. Food division sales expanded 39% driven by factors like new product development, optimized distribution channels, and production enhancements.
The main national brand, Golden Penny, also witnessed solid growth. The division continues to drive cost optimization, especially on key raw materials like wheat.
Speaking on the company’s growth, Mr. Boye Olusanya, the Group Managing Director/Chief Executive Officer of FMN stated “The success and sustenance of the FMN Brand is a promise made to all our shareholders/stakeholders. Our collective action as a Group is therefore geared towards keeping this promise. Progressively, we shall continue to boost our global competitiveness and viability to ensure that FMN is positioned to thrive amidst unprecedented environmental changes. In addition, the launch of the Power Company, will further improve the efficiencies and transform our structure/operations.”
Also commenting on the Group’s viable performance, The Group’s Chief Finance Officer, Anders Kristiansson said “Our consistent execution and growth underscores FMN’s financial and operational resilience. As we drive more efficiencies across the group, we expect to continue delivering value in line with our long-term strategic plan.”
For this strong financial report, shareholders applauded the company for its performance over the past year as they discussed strategic plans for the future. They overwhelmingly voiced their approval of FMN’s strong financial performance, praising the dividend payout of N9.23 billion at N2.25k per ordinary share. They urged the company to maintain its focus on profitability and shareholder value creation. Shareholders also pushed for higher future dividend payments given FMN’s solid performance.
Mr. Gbededo, one of the shareholders noted that “FMN remains as committed as ever to delivering sustainable long-term value for our shareholders while also upholding the highest standards of corporate social responsibility. We aim to strike the right balance between profitability and purpose. Our shareholders are our most valuable stakeholders. We highly appreciate their feedback and counsel which helps sharpen our focus on creating enduring shareholder wealth.”
CSR/SUSTAINABILITY
As a responsible corporate citizen, FMN is deeply committed to sustainability and environmental stewardship. The company has implemented various initiatives to minimize its environmental impact, including energy efficiency programs, waste reduction measures, and sustainable sourcing practices. By prioritizing sustainability, FMN not only preserves the environment for future generations but also enhances its reputation as a socially responsible organization.
One of its many works towards sustainable development is the commissioning of a solar-powered clean water plant financed for the Gbaji-Yeke Community in Badagry, Lagos which was in partnership with the Lagos State Government. The project was achieved under the One Community At A Time project (OCAAT), which aims to address the specific needs of grassroots communities and provide sustainable solutions.
Speaking at the commissioning ceremony, Group HR and Services Director FMN, Wale Adediran, expressed enthusiasm at the project and its transformative impact on the Gbaji-Yeke Community, noting that the initiative exemplifies the company’s commitment to community development, sustainable practices and positively impacting the lives of Nigerians.
According to him, the solar-powered clean water plant is part of FMN’s unwavering commitment to driving sustainable growth across Nigeria, which not only addresses the need for clean and accessible water but also aligns seamlessly with the company’s organizational sustainability outlook and the United Nations’ Sustainable Development Goals (SDGs) six, which seeks to ensure access to safe water sources and sanitation for all by leveraging renewable energy sources.
FMN is actively involved in CSR initiatives aimed at making positive contributions to society. The company’s CSR activities focus on education, healthcare, youth empowerment, environmental sustainability, and community development. FMN’s CSR programs seek to address pressing social challenges and improve the well-being of communities where it operates.
With these remarkable track records spanning over six decades, FMN has consistently invested in the advancement of local content and the nurturing of human capacities which is why the company was also honoured with the prestigious recognition of being one of Africa’s Fastest-Growing Companies in 2023 by the Financial Times.
Flour Mills of Nigeria is a dynamic and resilient company that has played a significant role in Nigeria’s economic development and food security. With its diverse product portfolio, market leadership, and commitment to sustainability, FMN continues to be a driving force in Nigeria’s food industry.