Northern Nigeria Flour Mills reports 25% pre-tax profit on robust wheat, maize sales
The strong revenue performance was primarily driven by the company’s wheat product segment, which contributed US$16.65 million
NIGERIA – Northern Nigeria Flour Mills Plc (NNFM), a subsidiary of Flour Mills of Nigeria (FMN) has reported a pre-tax profit of US$2.36 million (N2.8 billion) for the financial year ending March 31, 2025.
The impressive results marks a 25.16% increase compared to the US$1.94 million (N2.3 billion) posted in the previous fiscal year.
According to the company, the profit growth was underpinned by a substantial 36.38% rise in total revenue, which reached US$29.76 million (N35.3 billion), up from US$21.79 million (N25.9 billion) in 2024.
The strong revenue performance was primarily driven by the company’s wheat product segment, which contributed US$16.65 million (N19.8 billion).
Maize-based products followed with US$8.58 million (N10.2 billion) in revenue, while sorghum products generated US$2.55 million (N3.03 billion). Other minor product lines accounted for the remaining revenue, reinforcing the company’s diversification within Nigeria’s grain processing market.
Despite inflationary pressures, NNFM maintained a strong operating margin. Cost of sales rose by 35.03%, increasing from US$18.78 million (N22.3 billion) to US$25.45 million (N30.2 billion). However, gross profit still climbed to US$4.3 million (N5.1 billion), representing a healthy 44.89% increase from the US$2.95 million (N3.5 billion) recorded in the previous year.
The company also recorded a notable increase in other income streams, with “other operating income” rising by over 200% to US$116,300 (N138.3 million), largely driven by freight recoveries and miscellaneous earnings.
However, operating costs saw a sharp increase. General and administrative expenses more than doubled, rising by 116.49% to US$1.76 million (N2.09 billion), reflecting rising overhead and possibly investment in business operations and systems.
Despite the rise in operating expenses, NNFM’s operating profit still improved, growing by 24.4% to match its pre-tax profit of US$2.36 million (N2.8 billion). The company also benefited from a reduction in finance costs, which dropped from US$18,200 (N21.6 million) to US$10,700 (N12.7 million), helping ease the pressure on its profit margins.
NNFM’s balance sheet showed strong improvement during the year. Total assets increased by 70.43%, reaching US$25.73 million (N30.5 billion), reflecting capital investments and stronger asset utilization. Retained earnings rose by 56.63% to US$3.71 million (N4.4 billion), suggesting the company’s earnings are being reinvested to support future growth.
As of June 2, 2025, NNFM shares were trading at N138.90, with the stock delivering an impressive 216.40% gain year-to-date. The surge reflects growing investor confidence in the company’s strategic direction, operational efficiency, and ability to generate value in Nigeria’s increasingly competitive milling industry.
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