Nigerian Flour Millers report N591 billion in 2022 half year revenue despite operational challenges

The half-year ended June 30, 2022, saw income from two of the nation’s top flour millers reach N590.730 billion, a 43.37% increase over the N412,020 billion reported in 2021.


Flour Mills of Nigeria Plc and Honeywell Flour Mills Plc are two of the flour producers.

This was a result of both currency devaluation and a high inflation environment. The depreciation of the naira, rising food prices, supply chain disruptions, heightened insecurity, and deteriorating infrastructure all contributed to the inflation rate rising to 18.60% as of the end of June 2022, the highest level in 11 months.

According to data tracked by Nairametrics, profit after tax of these companies stood at N10.881 billion from N10.137 billion in 2021 representing a marginal 7.34% increase. This was due to rising cost of sales which swallowed much of the earnings following rising inflation and high exchange rate. Cost of sales for the firms stood at N529.666 billion for the half year 2022 as against N352.992 billion in 2021, accounting for a growth of 50.05%.

Despite efforts by the government to create an enabling environment for investment in the nation’s economy, the exchange rate volatility and its attendant effects have impacted businesses negatively.

The rise in exchange rate forced manufacturers to borrow at a high rate, thereby increasing the cost of production, which in turn is made worse by infrastructure deficiency. The resultant costs were, inevitably, transferred to consumers.

Aside from the increased cost of raw materials, some manufacturers, especially multinational consumer goods companies that have taken up foreign currency liabilities are also groaning under the pressure of the increased cost of the dollar.


Some of these companies plan their cash flows well in advance and they can’t easily adjust to currency fluctuations. The exchange rate volatility and difficulty in accessing dollars have resulted in erstwhile profitable companies becoming less profitable.

Breakdown of the analysis

  • A cursory look at the financials showed that Flour Mills of Nigeria Plc (FMN) led in revenue generation, followed by Honeywell Nigeria Plc.
  • FMN reported a revenue of N522.821 billion from N355.109 billion in 2021 representing a growth of 47%. Following high cost of sales, Profit after tax grew marginally by 6% to N10.528 billion for the half year 2022 as against N9.933 billion in 2021. Cost of sales grew by 53.66% to N468.406 billion from N304.819 billion.
  • Honeywell Flour Mills recorded a revenue of N67.909 billion in H1 2022, representing an increase of 19.32% over N56.911 billion reported in H1 2021. Profit after tax was N353 million in 2022 as against N204 million in 2021, accounting for an increase of 73%, while cost of sales stood at N61.260 billion in half year of 2022 from N48.173 billion in 2021, representing a growth of 27%.
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