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Northern Nigeria Flour Mills proposes 50kobo interim dividend amid 21% profit increase

Northern Nigeria Flour Mills proposes 50kobo interim dividend amid 21% profit increase

Northern Nigeria Flour Mills Plc has announced to pay an interim dividend of 15 kobo per ordinary share to its shareholders.

Subject to appropriate withholding tax and approval, the dividend payment, according to the consumer goods company, will be paid to shareholders, whose names appear in the Register of Members at the close of business on the 24th of August, 2021.

The dividend payment is for the period ended June 30, 2021.

The dividends will be paid electronically to shareholders whose names appear on the Register of Members and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts on 10th of September, 202, as obtained from a statement signed by the company’s secretary, Theophilus Ogwuche.

According to the miller, the Register of Shareholders will be closed from 25th of August to 27th of August, 202.

The proposed dividend payment by Northern Nigeria Flour Mills Plc is coming on the back of a remarkable first quarter, 2021 financial results for the period ended June 30 2021.

Read also: Flour Mills beats FMCG peers to post highest profit in H1

Analysis of the company’s performance revealed it reported a 21percent increase in profit after tax to N82.0 million from N 68.50 million reported in the corresponding quarter of 2020.

This was fueled by the increase in sales as its revenue was up 86.39 percent to N3.56 billion in June 2021 from N1.91 billion in the same period the previous year.

The miller, however, reported an 87.86 percent rise in cost of sales to N3.25 billion from the N1.73 billion reported in the preceding year.

As a result, the company’s gross profit stood at N310.78 million, 75.02 percent higher than the N 177.57 million reported in 2020. The cost of materials in the review period which was up to about N3 billion from a low base of N1.5 billion led to a jump in the company’s cost of sales.

Engaged in the milling of wheat and other associated grains, the Kano-based Northern Nigeria Flour Mills Plc reported earnings per share that was printed at 46 kobo during the review period.

The miller also sells Golden Penny products purchased from Flour Mills of Nigeria Plc (its parent company). Some of the products produced by Northern Nigeria Flour Mills Plc include; wheat flour, semovita, wheat offal, masaflour, germ flour, masavita, corn offal, etc. The company’s head office is in Kano, Nigeria.

Northern Nigeria Flour Mills Plc closed trading for the week ended August 6, 2021, on the floor of the Nigerian Exchange Limited (NGX) at N6.15 per share. Its total shares outstanding for the period stood at 178,200,000.