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Flour Mills of Nigeria, the largest agro-allied company in the country, has reported that its after-tax profit rose 71.4 percent year-on-year during the 2016 financial year ended on March 31.

The company said after-tax profit rose to N14.4 billion in 2016, compared with N8.5 billion recorded in the previous year. Revenues also rose 11 percent to N342.6 billion in 2016, as against N308.8 billion last year, according to a financial statement released at the Nigerian Stock Exchange on Thursday.

“I am pleased to report that in spite of the strong economic headwinds and tough business environment, devaluation of the naira and unrest in the North East, Flour Mills Group had an inspiring year,” said Paul Gbededo, the Group Managing Director of Flour of Nigeria. “Cost of sales was impacted by higher cost of foreign currency due to foreign market deregulation resulting in closing blended exchange rate of N295 to $1 as against CBN rate of N197.5. The company was able to offset the impact of the foregoing on its bottom-line only by gradual increases in selling prices of its products.”

Flour Mills of Nigeria said its profitability during the 2016 financial year was boosted by the income gained from the divestment of its 30 percent stake in Calabar-based United Cement Company of Nigeria (Unicem).

In November 2014, Flour Mills of Nigeria sold its Unicem stake to Lafarge Africa for N55 billion. As part of the deal, Flour Mills agreed to receive payments in two equal tranches, with the first tranche payable during the first quarter of 2015 and the second tranche payable by February 26th, 2016.

“The strong improvement in revenue and profitability was primarily driven by volume growth and efficiency gains, while benefits arising from the sale of investment in our associate company – Unicem – helped to improve the bottom line,” Gbedebo said.

Flour Mills said basic earnings per share rose 61.4 percent to N5.57 per share in 2016, as against N3.45 per share recorded in the previous year. The company has proposed a dividend of N2.62 billion for the 2016 full year (as against N5.5 billion last year), translating to N1 per share (as against N2.1 per share last year).

“During the year FMN increased its already substantial investment in its agro-allied businesses where it now grows and processes maize, soy beans, sorghum, sugar cane, palm oil, rice, cassava, and poultry as well as our dominant supply of fertilizer and agri-sacks to the Nigerian market,” added Gbedebo. “FMN continues to be one of the major promoters of the Agricultural Transformation Agenda of the federal government with its ongoing agro-allied investments aimed at creating jobs and stimulating economic activities in rural and urban areas.”

Founded in 1960, Flour Mills is the maker of Golden Penny brand of products with operations in flour milling, pasta production, fertilizer distribution, and polypropylene bag manufacturing. The company owns Apapa Bulk Terminal Limited, the operator of Terminals A and B of the Apapa Ports, Lagos. George Coumantaros, an American of Greek origins, and his family, owns 52.18 percent of Flour Mills through a holding company, Excelsior Shipping Company Limited.

As at 2.27pm on Friday, Flour Mills stock price on the NSE traded at N21.45 per share, up 5 percent from the previous day’s close.