Northern Nigeria Flour Mills Plc (NNFM) has released its Q3 2026 results for the period ended December 31, 2025, reporting a pre-tax loss of N584.87 million.
This marks a sharp reversal from the N2.31 billion profit recorded in the same quarter of the 2025 financial year.
The weak third-quarter result dragged the company’s 9-month pre-tax performance to a loss of N143.6 million, compared to a pre-tax profit of N4.11 billion posted in the same period last year.
The downturn was attributed to a steep decline in revenue, a near-collapse in other operating income, high material costs, and a spike in finance costs; all of which contributed to the loss.
Management says it is actively implementing measures to return the business to profitability.
Key highlights (Q3 2026 vs Q3 2025)
- Revenue: N4.33 billion, down 48.8% YoY
- Gross profit: N241.8 million, down 85.9% YoY
- Finance Cost: N181 million, up from N19 thousand
- Post tax profit: (N586) million from N2.3 billion
- Earnings per Share: (329) Kobo in Q3 vs 1,296 Kobo
- Total Assets: N31.97 billion, up 18.3% YoY
What the company’s books are saying
In Q3 2026, revenue declined to N4.33 billion, down 48.8% from N8.47 billion in Q3 2025. The revenue drop and high cost of sales fed directly into gross profit, which fell to N241.8 million from N1.71 billion.
- Other operating income, which had contributed over N1.1 billion in Q3 2025, turned negative at N254.1 million this year. This collapse in non-core income further dented operating margins.
- Administrative expenses ticked up to N385.6 million from N366.3 million, while selling and distribution expenses fell sharply, likely reflecting scaled-down commercial activity.
- The real hit came from finance costs, which spiked to N181 million from just N19,000 in Q3 2025. This swing, despite the company having no external borrowings, suggests rising intra-group or lease-related financing charges.
- As a result, the company posted an operating loss of N409.7 million, which expanded a pre-tax loss of N584.9 million for the quarter.
For the 9-month period, NNFM’s cumulative revenue stood at N18.37 billion, down 37.8% from the prior year.
Gross profit fell 65.1% to N1.33 billion, and finance costs jumped 17x to N234.7 million. This led to a pre-tax loss of N143.6 million for the 9 months ending December 2025.
Balance sheet performance
Despite the weak earnings, NNFM’s balance sheet remains relatively stable. Total assets rose 18.3% to N31.97 billion, driven by higher inventories and receivables.
- Cash and deposits improved to N1.69 billion, up from N1.04 billion in December 2024, largely due to positive working capital movements.
- The company reported no short or long-term debt, keeping its leverage low.
- However, trade payables showed a negative position, while other payables rose to N20.77 billion, likely reflecting related party balances.
Equity dropped to N9.48 billion from N12.05 billion, driven by the drop in retained earnings.
What to know
Northern Nigeria Flour Mills Plc is a milling company listed on the Nigerian Exchange (NGX), producing flour and semovita.
It is currently the 104th most valuable stock on the NGX, with a market capitalization of N15 billion, significantly higher than its net assets of N9.48 billion.
As of December 31, 2025, the company’s free float stood at N4.90 billion, representing 58.1 million shares or 32.61% of its outstanding shareholding.
- This indicates that while a reasonable portion of shares are available for public trading, a substantial stake remains in the hands of core investors, which could limit liquidity for new investors.
- While the company delivered a 92% return in 2025, its share price has remained flat in 2026 so far.
- NNFM’s Q3 2026 results reflect a significant deterioration in financial performance, with sharp declines in revenue, margin compression, and soaring finance costs.
- The absence of high non-operating income and a rise in group-related expenses contributed heavily to the quarterly loss.
While cash reserves and total assets remain healthy, the company’s path back to profitability depends on its ability to restore volumes, rebuild margins, and control costs—especially finance-related charges.
