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
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
³2ODPKDVLGHQWL¿HGJUDLQVDVRQHRIWKHVL[SULRULtized platforms for investment and accelerated growth,"
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%
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,
Dangote Flour Mills recovered from "years of lossHV´ZLWKDSUR¿WLQDFFRUGLQJWRDUHSRUWRQLWV
¿QDQFLDO DIIDLUV SXEOLVKHG E\7KLV 'D\ /LYH RQ -XQH
($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 ($346 million), up 18.6%.
HONEYWELL'S BIG INVESTMENT
Honeywell Flour Mills also has achieved rising turnRYHU$FFRUGLQJWRDUHSRUWSXEOLVKHGE\WKH'DLO\7UXVW
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%
by 15%, but interest expenses and taxation meant that
Honeywell has invested in a big new production
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."
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.
to ease a serious bottleneck with the 4.3 billion Naira
($12 million) project to reconstruct Wharf Road at the
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
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
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: email@example.com.
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