Northern Nigeria Flour Mills declares N70m profit after tax
Despite the disruption caused by the Corona-virus pandemic to its operations, Northern Nigeria Flour Mills Plc (NNFM) seems to be returning to the good days, as the company, has announced a Profit After Tax of about N70 million in the 2021 operational year.
As a result of this development, the shareholders of the company has approved the recommendation of the broad of directors for a dividend of 15 kobo per ordinary share of 50 kobo each be paid, as against the 15 kobo paid in the previous operational year.
This fact was the high point of the series of decisions taken at the 49th Annual General Meeting (AGM) of the company, held in the commercial city of Kano, on Thursday, which was presided over by John G. Coumantaros, vice-chairman of the company, in which the dominant number of the shareholders were represented, as part of the Covid -19 protocol.
Chairman Aminu A Dantata`s address delivered on his behalf by Coumantaros, the company said it was able to grow the Profit Before Tax to N156 million at the end of March 2021 compared to the sum of N120 million recorded in 2020, in spite the difficulties encountered in the year.
According to the chairman, the company`s overall performance was impressive, but it however, recorded revenue decrease from N8.8 billion in 2019/2020 operational year, compared to N8.7 billion achieved in the 2021 year, while Operating Profit was down from N562 million to N328 million within the same period.
“I am pleased to report that, viewed in the light of the foregoing challenges in the operating and business environment coupled with the modest successes recorded in our strategies, the company`s performance was impressive. The good news is that the company returned to the good days by delivering profit before tax,” Dantata said.
According to the chairman, the company is confident that will continue to sustain the upward growth momentum in profitability, going by the encouraging indications in the new financial year.
“The business environment is gradually emerging from the unprecedented turn of events during the 2020 caused by the Coronavirus pandemic (Covid-19), leading to major disruptions and a slowdown of the global economy. Nigeria had its own share of the upheavals with the collapse of the crude oil price on the international market. The consequent significantly fall in Government revenue together with a reduction in the level of external reserves put pressures on the Naira.”
Speaking about the Nigeria’s economy which witnessed a contraction that led to a descent into another round of recession, the company said the headwinds, coupled with the heightened level of insecurity, devaluation of the Naira and some other factors resulted in a reduction of industrial output, disruption of agricultural activities, rising unemployment, fall in purchasing power, and a general increase in hardship.
“The manufacturing industry contained to grapple with significant challenges which included infrastructural deficit, inadequate public power supply and other issues making the operating environment somewhat difficult to navigate”, the chairman told its shareholders.