Northern Nigeria Flour Mills Plc (NNFM) has reported impressive financial growth in its Q3 2024 results, posting a pre-tax profit of N2.3 billion, a 291.64% increase from N589.6 million in the same quarter of 2023. The company’s nine-month pre-tax profit soared by 164.37% year-over-year (YoY) to N4.1 billion, compared to N1.5 billion recorded in the corresponding period last year.
Despite a slight dip in Q3 revenue (N8.4 billion vs. N8.6 billion in Q3 2023), the company’s overall revenue for the nine months ending December 31, 2024, climbed 35.40% YoY to N29.5 billion from N21.8 billion.
Key Financial 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 (+4,988.63%)
•Selling & 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)
Cost and Profitability Trends
While revenue surged, cost of sales increased significantly by 56.41% to N25.7 billion, primarily driven by raw material expenses, which accounted for 93.64% of total costs. As a result, gross profit declined by 28.86% from N5.3 billion in 2023 to N3.8 billion in 2024.
However, the company recorded a massive 4,988.63% jump in other operating income, rising from N32.2 million to N1.6 billion, primarily due to increased sundry income. Additionally, selling and distribution expenses dropped by 89.54%, contributing to the 162.18% increase in operating profit.
Stronger Asset Position
NNFM’s total assets rose significantly to N27 billion, reflecting a 62% YoY growth.
•Current assets increased by 115.11% to N19.68 billion, driven by higher inventories and trade receivables.
•Non-current assets declined slightly to N7.34 billion, primarily due to lower property, plant, and equipment values.
Outlook
NNFM’s strong Q3 and nine-month performance highlights resilient growth in Nigeria’s flour milling sector, despite inflationary pressures and rising production costs. The company’s ability to drive efficiency, cut costs, and boost revenue has positioned it for further expansion.
With a strong balance sheet, reduced finance costs, and increased profitability, Northern Nigeria Flour Mills remains a key player in Nigeria’s agro-processing industry, contributing significantly to food security and economic growth.
