Northern Nigeria Flour Mills Plc (NNFM), Food Product company in Consumer Goods sector announced 113% revenue growth in its 2019 Audited results for the period ended March 31st, 2020.
The report showed the company reverted to a profit of N64.64 million, which compares with losses of N31.39 million, N60.98 million, N18.04 million, N197.24 million, and N199.95 million in the years 2019, 2018,2017, 2016, and 2015 respectively.
- Revenue grew by 113% to N8.8bn from N4.2bn in the previous quarter.
- Profit before tax stood at N121m.
- Profit after tax stood at N64.6m.
- Net Assets grew by 140.6% from N1.2bn to N2.8bn.
NNFM’S revenues surged by 113.52 percent to N8.84 billion in 2020 from N4.41 billion the previous year, and the company has been maintaining consistent top-line growth since 2016.
Northern Nigeria Flour Mills’ operating income excluding depreciation and interest expense increased by 6.50 percent to N562.13 million in the period under review from 2019’s N528.17 million.
The country’s economy has been growing sluggishly since it exited a recession in 2017- thanks to the instruction of a foreign exchange regime by the central and rebound in the oil price- and inflationary pressure and hike in utility bills have damped consumer sentiments.
The coronavirus pandemic that paralyzed business activities across the globe has damped the outlook for the Nigerian economy as lockdown imposed by the government to curb the spread of the virus disrupted the demand and supply side of the market.
Manufacturers were unable to source foreign currency at the official rate, forcing them to buy at an exorbitant black market rate, which made it difficult to import raw materials and equipment to meet production.
Despite the bleak outlook and gloomy prognosis due to the devastating impact of the virus on the economy, NNFM is expected to thrive amid headwinds largely because its major product portfolios (Food, Sugar and Agro-Allied) are concentrated on essential items.
NNFM has 3 manufacturing units with a combined capacity of 1,200 metric tons per day, making it a major player in the Kano market.
The Northern Nigeria Flour Mills product range includes Golden Penny Flour, Golden Penny Semovita, Wheat Offals and a range of maize products (Masavita, Masa Flour and Corn Offals).