Northern Nigeria Flour Mills Plc reported a pretax profit of N112.7 million for the financial year ended March 2026, according to its audited results filed on the Nigerian Exchange.
The result reflects a steep 96.09% decline from the N2.8 billion recorded in March 2025, pressured largely by weaker revenue performance and rising finance costs.
Revenue for the year decreased to N21.5 billion from N35.3 billion in the previous year, driven mainly by lower sales across the company’s agricultural products segment.
Despite the weaker earnings performance, the company’s balance sheet remained resilient as total assets rose 41% year-on-year to N43.1 billion, while retained earnings edged higher to N4.48 billion.
Key highlights (FY ended March 2026 vs. FY ended March 2025)
- Revenue: N21.5 billion vs N35.3 billion
- Cost of sales: N19.7 billion vs N30.2 billion
- Gross profit: N1.7 billion vs N5.1 billion
- Operating profit: N329.7 million vs N2.8 billion
- Pretax profit: N112.7 million vs N2.8 billion
- Post-tax profit: N25.6 million vs N1.7 billion
- Retained earnings: N4.48 billion vs N4.46 billion
Driving the numbers
A closer review of the income statement shows revenue weakened significantly, driven mainly by maize sales, which declined sharply from N10.2 billion to N2.2 billion.
- Wheat product sales slipped slightly to N18.6 billion from N19.8 billion but remained the company’s largest revenue contributor during the financial year.
- Revenue from sorghum also dropped heavily to N712.9 million, representing a 76.51% decline compared to the previous financial year.
- Lower sales from mixed products alongside the absence of “other revenue” further pressured the company’s overall revenue performance for the year.
As expected, the cost of sales declined to N19.7 billion from N30.2 billion, while gross profit settled at N1.7 billion, down from N5.1 billion previously.
- More positively, other operating income rose to N300.9 million from N138.3 million, supported largely by stronger sundry income related to the sale of scraps.
- The company also reduced operating expenses, with selling and distribution costs falling 50.9% to N139.8 million, while administrative expenses eased to N1.5 billion.
After finance costs and taxation, profit after tax settled at N25.6 million, marking a steep decline from the N1.7 billion recorded in the previous year.
Balance sheet:
Total assets expanded to N43.1 billion from N30.5 billion, with inventories valued at N19.1 billion accounting for the largest share.
Liabilities rose to N31.03 billion from N20.8 billion, driven largely by borrowings which increased from zero to N15.02 billion.
Total equity climbed to N12.1 billion from N9.6 billion, while retained earnings remained solid at N4.48 billion.
Market reaction
Shares of Northern Nigeria Flour Mills are currently priced at N79.40, down 5.81% year-to-date.
The stock last traded on 6 February 2026, when it fell 3.47%, with flat price action persisting through 26 May 2026.
