Northern Nigeria Flour Mills Plc reports 291% surge in Q3 2024 pretax profit

NIGERIA – Northern Nigeria Flour Mills Plc (NNFM), a subsidiary of Flour Mills of Nigeria (FMN) has reported a third-quarter (Q3) pretax profit of NGN 2.3 billion (US$ 3.01 million), a remarkable 291.64% increase from NGN 589.6 million (US$ 772,073) recorded during the same period in 2023.

The company’s financial report, released on January 29, 2025, on the Nigerian Exchange Group (NGX), highlights a total pre-tax profit of NGN 4.1 billion (US$ 5.36 million) for the nine months ending December 31, 2024—representing a 164.37% year-over-year (YoY) increase.

Despite a slight dip in quarterly revenue, which stood at NGN 8.4 billion (US$ 10.98 million) compared to NGN 8.6 billion (US$ 11.24 million) in the previous year, the company’s total revenue for the nine-month period surged by 35.40% YoY, reaching NGN 29.5 billion (US$ 38.6 million) compared to NGN 21.8 billion (US$ 28.54 million) in 2023.

Cost, profit margins

The company’s cost of sales significantly increased by 56.41% YoY to NGN 25.7 billion (US$ 33.67 million) from NGN 16.4 billion (US$ 21.47 million), with material costs accounting for 93.64% of the total.

This sharp rise in costs contributed to a 28.86% decline in gross profit, which dropped to NGN 3.8 billion (US$ 4.97 million) from NGN 5.3 billion (US$ 6.94 million) recorded the previous year.

However, NNFM saw a notable boost in other operating income, which soared to NGN 1.6 billion (US$ 2.09 million), a staggering 4,988.63% increase from NGN 32.2 million (US$ 42,144) in the same period last year. Sundry income accounted for 99.48% of this figure.

Additionally, selling and distribution expenses plummeted by 89.54% to NGN 334.8 million (US$437,785), driven largely by reduced selling expenses.

Operating profit rose by an impressive 162.18% to NGN 4.1 billion (US$ 5.36 million). The company also managed to reduce its finance costs by 30.33% to NGN 13.8 million (US$ 18,046), primarily due to lower expenses associated with long-term loans.

Consequently, NNFM’s pre-tax profit for the nine-month period ending December 31, 2024, surged to NGN 4.1 billion (US$ 5.36 million), up from NGN 1.5 billion (US$ 1.96 million) reported during the same period in 2023. For Q3 alone, the pre-tax profit stood at NGN 2.3 billion (US$ 3.01 million).

As of December 31, 2024, NNFM’s total assets amounted to NGN 27 billion (US$ 35.37 million), marking a 62% increase from NGN 16.68 billion (US$ 21.87 million) in 2023.

Non-current assets saw a slight decline to NGN 7.34 billion (US$ 9.61 million), primarily due to a modest decrease in property, plant, and equipment.

Conversely, current assets experienced substantial growth, reaching NGN 19.68 billion (US$ 25.76 million), a 115.11% increase driven by a significant rise in inventories and trade receivables.

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