World Grain - August 2018 - 44

REGIONAL REVIEW: NIGERIA'S GROWING MARKET FOR WHEAT FLOUR

Suresh, managing director and CEO of Olam Grains.
"We are very pleased to acquire these strategically
located, port-based assets as undeveloped land at
1LJHULDQSRUWVLVLQFUHDVLQJO\GLI¿FXOWWRDFFHVV7KH\
are highly complementary to our existing asset base in
Lagos and Warri, and will not only strengthen our current market position and deliver multiple synergies, but
also enable us to access the high growth areas in the
north and southeast of Nigeria."
At Lagos, Crown Flour Mill has a milling capacity of 1,580 tonnes a day, along with storage capacity of 48,000 tonnes, while at Warri it has milling capacity of 800 tonnes a day, with storage capacity of
20,000 tonnes.
³2ODPKDVLGHQWL¿HGJUDLQVDVRQHRIWKHVL[SULRULtized platforms for investment and accelerated growth,"
Suresh said.
FMN, DAGOTE REBOUNDING
Flour Mills of Nigeria Plc presented its results for
the year to March 31, 2018, with a reminder that the
company has evolved from a single mill in the port of
Apapa over 50 years ago to a vertically integrated agrifood and logistics business. Its turnover was up 3.5%
DW1ELOOLRQELOOLRQZLWKSUR¿WEHIRUHWD[
at N16.5 billion.
In a March 24, 2017, update, Paul Gbededo, group
managing director and CEO of Nigerian Flour Mills,
bemoaned the effect of Nigeria's recession, triggered
in the last quarter of 2014 by a fall in the price of oil,
on the economy.
³7KHUHFHVVLRQRI1LJHULDKLWHYHU\ERG\XQH[SHFWHGly," he said. "Nobody foresaw it. We were affected, and
our performance was too, but within 12 to 15 months,
we readjusted."
Dangote Flour Mills recovered from "years of lossHV´ZLWKDSUR¿WLQDFFRUGLQJWRDUHSRUWRQLWV
¿QDQFLDO DIIDLUV SXEOLVKHG E\7KLV 'D\ /LYH RQ -XQH
7KHFRPSDQ\PDGHDSUR¿WRI1ELOOLRQ
($42 million) in the year ended Dec. 31, 2017, up from
N10.5 billion ($29 million) in 2016.
In a report on the company's annual general meeting, Asue Ighodalo, chairman of Dangote Flour Mills,
said the company will "continue to develop strategies
to harness opportunities occasioned by improvements
in economic indices while mitigating the adverse effective of the continued and emerging threats to the
performance and growth of our business."
He promised an aggressive marketing and brandLQJ FDPSDLJQ 7KH FRPSDQ\¶V UHSRUWHG WXUQRYHU ZDV
N125.4 billion ($346 million), up 18.6%.

44

HONEYWELL'S BIG INVESTMENT
Honeywell Flour Mills also has achieved rising turnRYHU$FFRUGLQJWRDUHSRUWSXEOLVKHGE\WKH'DLO\7UXVW
RQ-XO\LWVUHYHQXHLQWKH\HDUHQGHG0DUFK
31, 2018, was up 34% at N71.5 billion ($198 million).
However, higher energy costs caused by disruptions in
gas supplies meant that the cost of sales rose by 37%
WR1ELOOLRQPLOOLRQ2SHUDWLQJSUR¿WURVH
by 15%, but interest expenses and taxation meant that
SUR¿WDIWHUWD[ZDVXSMXVW
Honeywell has invested in a big new production
FRPSOH[DW6DJDPX7KLV'D\/LYHUHSRUWHGRQ6HSW
18, 2016, on a visit by shareholders to the new plant.
Nino Ozara, executive director of manufacturing at
Honeywell Flour Mills Plc, called the new site, "proof
of the company's growth prospects and commitment
toward re-enforcing investors' trust even in the face of
the current economic challenges."
³7KHSODQWZLOOSURGXFHODUJHVFDOHZKHDWDQGQRQ
wheat-based products that would meet present and future food needs of Nigerian consumers, thereby further
strengthening the company's leadership position in the
Nigerian milling industry," Ozara said.
7ZRRI1LJHULD¶VPLOOHUVEHFDPHLQYROYHGZLWKDSODQ
to ease a serious bottleneck with the 4.3 billion Naira
($12 million) project to reconstruct Wharf Road at the
SRUWRI$SDSDLQ/DJRVDFFRUGLQJWRD-XQH
UHSRUWIURP7KLV'D\/LYHZKLFKGHVFULEHGWKHYLWDO
road as decrepit. According to the report, Babatunde
Fashola, minister of Power, Works and Housing,
signed a Memorandum of Understanding with Dangote
Group, the Nigerian Ports Authority (NPA) and Flour
0LOOVRI1LJHULD7KHURDGZDVWKHQKDQGHGRYHUWRWKH
three stakeholders, with project to be carried out by
Dangote's construction arm.
"Fashola, while speaking at signing ceremony, explained that the gridlock in Apapa became compounded and had reached an unbearable level as transporters
ignored the old system of moving cargo through rail to
trucks and containers," the report said.
"I like to acknowledge the leadership role of Dangote
and Nigerian Flour Mills, who are operators and have
also contributed to make this a reality," the minister
said.
Gbededo called Wharf Road the "most important
road in the entire country."
Chris Lyddon is World Grain's European correspondent. He may be
contacted at: chris.lyddon@ntlworld.com.
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August 2018 / World Grain / www.World-Grain.com


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Table of Contents for the Digital Edition of World Grain - August 2018

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http://www.nxtbook.com/sosland/wg/2017_12_01
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http://www.nxtbook.com/sosland/wg/2017_09_01
http://www.nxtbook.com/sosland/wg/2017_08_01
http://www.nxtbook.com/sosland/wg/2017_07_01
http://www.nxtbook.com/sosland/wg/2017_06_01
http://www.nxtbook.com/sosland/wg/2017_05_01
http://www.nxtbook.com/sosland/wg/2017_04_01
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http://www.nxtbook.com/sosland/wg/2016_12_01
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http://www.nxtbook.com/sosland/wg/2016_10_01
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http://www.nxtbook.com/sosland/wg/2016_04_01
http://www.nxtbook.com/sosland/wg/2016_03_01
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http://digital.world-grain.com/sosland/wg/2011_02_01
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http://digital.world-grain.com/sosland/wg/2010_09_01
http://digital.world-grain.com/sosland/wg/2010_08_01
http://digital.world-grain.com/sosland/wg/2010_07_01
http://digital.world-grain.com/sosland/wg/2010_06_01
http://digital.world-grain.com/sosland/wg/2010_05_01
http://digital.world-grain.com/sosland/wg/2010_04_01
http://digital.world-grain.com/sosland/wg/2010_03_01
http://digital.world-grain.com/sosland/wg/2010_02_01
http://digital.world-grain.com/sosland/wg/2010_01_01
http://digital.world-grain.com/sosland/wg/2009_12_01
http://digital.world-grain.com/sosland/wg/2009_11_01
http://digital.world-grain.com/sosland/wg/2009_10_01
http://digital.world-grain.com/sosland/wg/2009_09_01
http://digital.world-grain.com/sosland/wg/2009_08_01
http://digital.world-grain.com/sosland/wg/2009_07_01
http://digital.world-grain.com/sosland/wg/2009_06_01
http://digital.world-grain.com/sosland/wg/2009_05_01
http://digital.world-grain.com/sosland/wg/2009_04_01
http://digital.world-grain.com/sosland/wg/2009_03_01
http://digital.world-grain.com/sosland/wg/2009_02_01
http://digital.world-grain.com/sosland/wg/2009_01_01
http://digital.world-grain.com/sosland/wg/2008_12_01
http://digital.world-grain.com/sosland/wg/2008_11_01
http://digital.world-grain.com/sosland/wg/2008_10_01
http://digital.world-grain.com/sosland/wg/2008_09_01
http://digital.world-grain.com/sosland/wg/2008_08_01
http://digital.world-grain.com/sosland/wg/2008_07_01
http://digital.world-grain.com/sosland/wg/2008_06_01
http://digital.world-grain.com/sosland/wg/2008_05_01
http://digital.world-grain.com/sosland/wg/2008_04_01
http://digital.world-grain.com/sosland/wg/2008_03_01
http://digital.world-grain.com/sosland/wg/2008_02_01
http://digital.world-grain.com/sosland/wg/2008_01_01
http://digital.world-grain.com/sosland/wg/2007_12_01
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http://digital.world-grain.com/sosland/wg/2007_10_01
http://digital.world-grain.com/sosland/wg/2007_09_01
http://digital.world-grain.com/sosland/wg/2007_08_01
http://digital.world-grain.com/sosland/wg/2007_07_01
http://digital.world-grain.com/sosland/wg/2007_06_01
http://digital.world-grain.com/sosland/wg/2007_05_01
http://digital.world-grain.com/sosland/wg/2007_04_01
http://digital.world-grain.com/sosland/wg/2007_03_01
http://digital.world-grain.com/sosland/wg/2007_02_01
http://digital.world-grain.com/sosland/wg/2007_01_01
http://digital.world-grain.com/sosland/wg/2006_12_01
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http://digital.world-grain.com/sosland/wg/2006_10_01
http://digital.world-grain.com/sosland/wg/2006_09_01
http://digital.world-grain.com/sosland/wg/2006_08_01
http://digital.world-grain.com/sosland/wg/2006_07_01
http://digital.world-grain.com/sosland/wg/2006_06_01
http://digital.world-grain.com/sosland/wg/2006_05_01
http://digital.world-grain.com/sosland/wg/2006_04_01
http://digital.world-grain.com/sosland/wg/2006_03_01
http://digital.world-grain.com/sosland/wg/2006_02_01
http://digital.world-grain.com/sosland/wg/2006_01_01
http://digital.world-grain.com/sosland/wg/2005_12_01
http://digital.world-grain.com/sosland/wg/2005_11_01
http://digital.world-grain.com/sosland/wg/2005_10_01
http://digital.world-grain.com/sosland/wg/2005_09_01
http://digital.world-grain.com/sosland/wg/2005_08_01
http://digital.world-grain.com/sosland/wg/2005_07_01
http://digital.world-grain.com/sosland/wg/2005_06_01
http://digital.world-grain.com/sosland/wg/2005_05_01
http://digital.world-grain.com/sosland/wg/2005_04_01
http://digital.world-grain.com/sosland/wg/2005_03_01
http://digital.world-grain.com/sosland/wg/2005_02_01
http://digital.world-grain.com/sosland/wg/2005_01_01
http://digital.world-grain.com/sosland/wg/2004_12_01
http://digital.world-grain.com/sosland/wg/2004_11_01
http://digital.world-grain.com/sosland/wg/2004_10_02
http://digital.world-grain.com/sosland/wg/2004_10_02
http://digital.world-grain.com/sosland/wg/2004_10_01
http://digital.world-grain.com/sosland/wg/2004_09_01
http://digital.world-grain.com/sosland/wg/2004_08_01
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