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EUR 4.00 For Business Accounts Only

FLOURMILL | 2022FY | STOCK NOTE - Navigating Macroeconomic Headwinds

  • FLOURMILLS posted sustained Revenue growth in 2022FY, as it grew topline by 50.8% YoY to join the league of listed firms in Nigeria with the enviable position of posting trillion-Naira revenue. Despite the momentous surge, however, the firm was only able to do a marginal (+1.2% YoY) growth in Gross Profit, as the impact of rising Cost of Sales overshadowed an otherwise ‘top shelf’ year. Nonetheless, we have reasons for optimism, seeing as the impact of scale, especially on segments with relatively better margins, and the continued implementation of its Backward Integration Plan (BIP) continues to portend decent performances into the future.

Considering the preceding premises and concerns, and what it bodes for the firm’s future in line with its strategic efforts, we have reviewed our pricing of the ticker. Previously, we had a target price of NGN41.00 which has now been upgraded to NGN63.55 per share

Provider
ARM Securities Limited
ARM Securities Limited

ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape. ​

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