Northern Nigeria Flour Mills Plc has released its unaudited financial statement for the six-month period ended September 30, 2025, reporting a profit before tax of N552.672 million.
This indicates a 69.3% decline from N1.80 billion reported in the corresponding period of 2024.
The result filed with the Nigerian Exchange (NGX) on Thursday also showed a significant decline in revenue by 33.45% to N14.033 billion compared with N21.087 billion in six months of 2024.
Operating income declined from N534.449 million in 2024 to N430.727 million in the period under review, and as a result, the company did not book tax expense for the review period, perhaps under tax forbearance.
Earnings per share declined sharply by 69.3% to N3.10, from N10.11 in six months of 2024.
Key highlights (6M 2025 vs 6M 2024)
- Revenue: N14.033 billion (-33.45% YoY)
- Cost of Sales: N12.930 billion (-31.83% YoY)
- Gross Profit: N1.103 billion (-47.9% YoY)
- Selling & Distribution Expenses: N249.011 million (+31.09% YoY)
- Administrative Expenses: N733.277 million (+13.18% YoY)
- Employee Costs (within Admin Expenses): N347.010 million
- Operating Income: N430.727 million (-19.43% YoY)
- Profit Before Tax (PBT): N552.672 million (-69.3% YoY)
- Tax Expense: Nil (under possible tax forbearance)
- Profit After Tax (PAT): N552.672 million (-69.3% YoY)
- Earnings Per Share (EPS): N3.10 (-69.3% YoY)
Cursory analysis
A cursory analysis of the result shows that the high cost of sales amounting to N12.930 billion, though lower than N18.971 billion in 2024, brought down gross profit at N1.103 billion, 47.9% lower than N2.115 billion reported a year earlier.
Selling and distribution expenses increased to N249.011 million (+31.09%) from N189.942 million, while administrative expenses increased 13.18% to N733.277 million compared to N647.856 million in six months of June.
Employee costs accounted for N347.01 million, more than half of the total administrative costs.
Balance sheet analysis:
Nairametrics analysis of the balance sheet shows that the company strengthened its total assets, which leapt by 92.7% to N30.8 billion, up from N16 billion.
The total liabilities increased faster than assets, rising by 234.8% to N20.608 billion, up from N6.155 billion in the six-month period.
The sharp increase in liabilities was due to high trade receivables, which stood approximately at N19 billion compared to N3.38 billion in the corresponding period of 2024.
Total equity attributable to equity holders of the company edged up to N10.185 billion, up from N9.827 billion as at September 30, 2024.
Outlook of the stock
The half-year result reflects significant earnings pressure, with profit before tax plunging 69.3% amid a steep 33.5% revenue decline. Although the cost of sales moderated, the persistent rise in operating and administrative expenses continues to erode margins. The absence of tax expense provided temporary relief but does not alter the weakening profitability trend.
Equity investors may begin to price in current financial results, which signal declining operational efficiency and demand challenges. As at Thursday, October 30, the share price was trading flat at about N93.65 during mid-day trading. The price hit its year high of N138.90 on Wednesday, June 4, before dropping to N86.45 on Friday, September 12. Since September 15, it has been stagnating at N93.65.
