FLOURMILLS has proven resilient in the face of tough macroeconomic terrain by developing new products, expanding its market reach, and boosting export earnings.
Topline growth expected
In FY’24/25E, we maintain our expectation of steady revenue growth, driven by strong performance across the different business segments as explained below:
Food: This segment has continued to deliver impressive turnover on the back of product innovation and continuous investment in distribution strategies, alongside price and volume increases. For context, in FY’23/24, the company recorded a 17.2% YoY increase in volumes, driven by Business2Customer (B2C) expansion in its Pasta, Semovita and GoldenVita products. In addition, the company launched new products like the chocolate spread, mayonnaise, chin-chin, brown sugar and the consumer ball food in the North. For the noodles line, the company added new flavours (Goat Pepper Soup and Jolof Hot Hot), which — according to management — was well received by the market. Given Food’s significant portion of total revenue (c.65.9%), we expect the continued investment drive in B2C categories, new product launches, and higher prices to drive boost topline growth in FY’24/25E.
