Northern Nigeria Flour Mills Plc (NNFM) has delivered a solid financial performance for the fiscal year ended March 31, 2025, reflecting robust topline growth, disciplined cost management, and significant balance sheet expansion.
Key Takeaways:
- Revenue surged by 36.38% year-on-year to N35.3 billion (FY 2024: N25.9 billion), underscoring strong product demand and effective market penetration.
- Wheat products led revenue contributions, accounting for N19.8 billion, followed by maize at N10.2 billion and sorghum at N3.03 billion.
While the cost of sales rose 35.03% to N30.2 billion, gross profit increased by 44.89% to N5.1 billion, showcasing improved margin resilience despite inflationary pressures.
Operating leverage played a vital role, with other operating income climbing 203.74% to N138.3 million, buoyed by freight recoveries and sundry gains. However, general and administrative expenses more than doubled (+116.49% to N2.09 billion), reflecting increased business activity and possibly cost inflation.
Nonetheless, NNFM maintained earnings momentum, with operating profit increasing 24.40% to N2.8 billion and pre-tax profit rising by 25.16% to the same level. An additional tailwind came from lower finance costs, which fell 41.20% to N12.7 million, aiding net margins.
On the balance sheet, NNFM recorded a 70.43% increase in total assets, reaching N30.5 billion—likely a result of expanded operations and strategic capital investments. Retained earnings also rose 56.63% to N4.4 billion, reinforcing the company's earnings retention and long-term growth outlook.
Outlook: NNFM's FY 2025 results reflect a compelling growth trajectory powered by strong demand fundamentals, efficient cost management, and improving operational scale. However, the spike in administrative expenses warrants monitoring going forward. Continued margin discipline and balance sheet optimization will be key to sustaining this growth momentum.
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