Northern Nigeria Flour Mills (NNFM) Plc has released its audited financial statement for the full year ended 31 March 2022.
According to the audited financial statement, the manufacturing firm reported a profit after tax of N80.67 million the previous year’s profit of N69.92 million, representing a growth of 15.37%. Profit before tax for the full year stood at N184.527 million from N134.346 million, an increase of 37.35%.
Revenue grew by 75% to N15.232 billion during the period under review from N8.667 billion reported in 2021.
However, the cost of sales which rose by 79.85 per cent to N13.315 billion in 2022 as against N7.365 billion helped to shrink the revenue.
The increase in the exchange rate has forced manufacturers to borrow at a high rate, thereby increasing the cost of production, made worse by the infrastructure deficiency, which has inevitably transferred the high production cost to consumers as this had made manufacturers less competitive, shrinking their profit margins, as the naira’s devaluation takes its toll on imported raw materials.
Aside from the increased cost of raw materials, some manufacturers, especially multinational consumer goods companies that have taken up foreign currency liabilities are also groaning under the pressure of the increased cost of the dollar.
Other key highlights
- Total asset grew by 80.78% from N7.874 billion to N14,161in 2022 showing the firm still maintain a strong balance sheet.
- Northern Nigeria Flour Mills Plc had reported a profit after tax of N69.919 million for the full year ended March 31, 2021.
- The profit represents 8.17% increase against N64.635 million recorded in 2020.
- Profit before tax stood at N134.346 million for the full year as against N120.675 million, representing a growth of 11.33%.
- Revenue however dropped by 1.96% from N8.841 billion in 2020 to N8.667 billion in 2021.
- Gross profit grew by 35% to N1.07 billion y-o-y from N792.970 million
- Operating profit rose by 9.73% N388.07 million y-o-y from N328.29
- Current Assets grew by 157% N8.24 billion y-o-y from N3.21 billion.