NNFM Returns To Profit, Offers N26.73m Dividend, First In Decade

Northern Nigeria Flour Mills, on Tuesday, presented its audited financials for the year ended March 31, 2020, showing over a 100% growth in revenue and a return to profit before and after-tax, following which the directors have recommended a dividend of N26.73m, for the first time in 10 years.

This translates to dividend per share of 15 kobo, payable to shareholders whose names appear on the register as of August 24, as the register of members will be closed on Tuesday, August 25, 2020. Payment of the dividend electronically is slated for Thursday, September 10, 2020.

According to details of the result presented to the Nigerian Stock Exchange (NSE), sales revenue jumped by N4.691bn, or 113.04% from N4.149bn in the 2019 full-year to N8.841bn. The bulk of the revenue was the N7.735bn from sale of goods, which rose from N3.379bn, while rendering of services (contract milling fees) climbed from N770.766m to N1.105bn. Cost of sales for the period rose by N4.395bn or a faster 123.14%; resulting in gross profit of N295.763m or 50.96% to N7.656bn from N3.569bn boosted by the N6.969bn cost of raw materials consumed, up from N2.869bn.

Other operating income declined from N264.912m to N202.453m, the bulk of which was the N190.473m government grant, which increased from N181.525m; selling and distribution expenses soared by N20.042m or 158.08% from N12.678m to N32.72m; just as there was a reversal on trade receivables stood at N28.027m, compared to the previous year’s N28.06m impairment losses.

General and administrative expenses jumped from N276.601m to N511.626m, representing an increase of N235.025m or 84.97%; resulting in operating profit of N562.192m, as against the previous N527.868m.

Interest income leaped from N2.567m to N24.186m, driven by the N18.47m interest income on bank balance and fixed deposit; finance costs fell to N465.703m from N571.933m, lifted by the N426.538m interest on bank loans which dropped marginally from N428.126m; resulting in profit before tax of N120.675m, compared to the loss of N52.413m.

Tax expenses stood at N56.04m, as against the tax credit of N20.717m in 2019; resulting in net profit of N 64.635m from the previous N31.696m, translating to earnings per share of 36 kobo, up from the 18 kobo loss in 2019

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