Northern Nigeria Flour Mills a listed Miller on the Nigerian Stock Exchange (NSE) has announced its first profit in five years; thanks to a double-digit growth in revenue for the year ended March 2020.
Northern Nigeria Flour Mills on Tuesday 11th of August 2020 announced that it made a full-year profit of N64.6 million for the period ended in 2020.
This is the first time the company will be making a profit since 2015.
The profit emerged on the back of a 113 percent growth in the company’s sales as well as the 842 percent growth in finance income for the same period.
Shares of the company however remained flat at N4.30 at the close of trade on Wednesday but their basic earnings per share showed an increase of 100 percent from 18 kobo in 2019 to 36 kobo in 2020.
Northern Nigeria Flour Mills Plc is a milling company. The Company produces flour and semovita.
The surge in their revenue growth for the year ended from N4 billion to N8.8 billion was despite a 128.9 percent increase in sales of goods and due to a 43 percent boost in rendering of services-contract milling fees for the period ended.
Gross profit grew by 50.9 percent from N580 million in 2019 to N876 million in 2020 while the company was able to retain less from every N100 sale as gross margin fell from 13.9 percent in 2019 to 9.91 percent in 2020.
Operating profit grew by 6.5 percent as selling expenses increase by 158 percent.
The proposed dividend of Northern Nigeria Flour Mills Plc, if approved by the shareholders of the company, would be subject to deduction of appropriate withholding tax.
The total asset of the flour miller rose by 70% year-onyear to N8.49 billion in the year ended March 2020. Also, total liabilities grew by 49% to N5.722 billion. Owner’s wealth more-thandoubled to N2.77 billion.