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Flour Mills of Nigeria Plc

ARM Research”: Initial View – Flour Mills of Nigeria Plc Q3 19

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Earnings drown on higher cost and operating expense Yesterday, Flour Mills of Nigeria released its third quarter (FQ3 19) result for the period ended December 2019, which showed a 27.4% YoY contraction in EPS by 27.4% YoY to N0.69 following persisting pressure on margins from higher cost of sales (+7.3% YoY) and higher operating expense (+10.6% YoY). Accordingly, EPS over the first nine month of the year declined 40.4% to N1.93. Despite the downward adjustment to prices which started in FQ1 19, the company reported slight revenue growth in FQ3 19 (+1.4% YoY N130.9 billion) with management linking this to…

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