Dear Subscriber,

The choppy performance of the Nigerian stock market in 2021 has been driven by three main factors: earnings, sentiment and the interest rate environment. One of the leading FMCG companies in the Nigerian market, Flour Mills of Nigeria, released stellar FY’21 results, which has contributed to the ASI’s 2.48% gain recorded so far in July.

FMN’s stock has gained 18.3% year to date, in spite of its double digit growth of 34% in its topline; surpassing the manufacturing sector’s growth of 3.4%. This can be attributed to its aggressive backward integration in domestic agriculture and a well-diversified brand portfolio, both of which have paid off immensely. In addition, the company stands to benefit from the CBN’s recent sugar import substitution strategy, which will boost FMN’s access to forex.

At the current price of N30.75 and an earnings multiple of 5.9x, the stock remains a Buy.

In the download and link of this special bulletin, the FDC Think-Tank analyzes FMN’s FY’21 financial result and provides an outlook for the company’s stock.

Do enjoy your read…