Northern Nigeria Flour Mills Plc has announced a third quarter (Q3) pretax profit of N2.3 billion in its latest financial report, published on the NGX on the 29th of January 2025.
The company’s Q3 profit represents a 291.64% increase from the N589.6 million profit in the same period in 2023, resulting in a total pre-tax profit of N4.1 billion for the nine months ending December 31—up 164.37% YoY.
For the third quarter, the company’s revenue stood at N8.4 billion, slightly down from N8.6 billion in the corresponding quarter of the prior year.
Nevertheless, the total revenue for the nine months ending December 31, surged by 35.40% year-over-year, amounting to N29.5 billion compared to N21.8 billion from the previous year.
Key Highlights (2023 vs 2024)
- Revenue: N29.5 billion, +35.40% YoY
- Cost of sales: N25.7 billion, +56.41% YoY
- Gross profit: N3.8 billion, -28.86%
- Other operating income: N1.6 billion, +4988.63%
- Selling and distribution expenses: N334.8 million, -89.54%
- Operating profit: N4.1 billion, +162.18% YoY
- Finance cost: N13.8 million, -30.33% YoY
- Pre-tax profit: N4.1 billion, +164.37% YoY
- Total Assets: N27 billion, +62.00% YoY
Commentary
For the nine-month period ending December 31, 2024, Northern Nigeria Flour Mills reported revenue of N29.5 billion, a 35.40% increase from N21.8 billion in the same period last year, with Q3 revenue at N8.4 billion.
- However, the cost of sales rose significantly by 56.41% year-over-year, increasing to N25.7 billion from N16.4 billion, with material costs accounting for 93.64% of the total.
- As a result, gross profits declined by 28.86%, dropping from N5.3 billion in the previous year to N3.8 billion for the nine months ending December 31, 2024.
On a brighter note, the company’s other operating income increased to N1.6 billion, up from N32.2 million in the same period last year, with sundry income making up 99.48% of this total.
Additionally, selling and distribution expenses decreased to N334.8 million, reflecting an 89.54% reduction year-over-year, largely due to lower selling expenses.
Operating profit rose by 162.18% to N4.1 billion, while finance costs, primarily from long-term loans, were reduced by 30.33%.
Consequently, pre-tax profit for the nine months increased by 164.37% to N4.1 billion, up from N1.5 billion reported in the same period in 2023.
- For Q3 ending December 31, 2024, the pre-tax profit was N2.3 billion.
Asset position
For period ending December 31, 2024, total assets reached N27 billion, representing a notable 62% increase from N16.68 billion in 2023.
- Non-current assets saw a slight decline to N7.34 billion, mainly attributed to a modest decrease in property, plant, and equipment.
- Conversely, current assets grew substantially to N19.68 billion, reflecting a 115.11% increase, driven primarily by a significant rise in inventories and trade receivables.