Northern Nigeria Flour Mills Plc Profit Crashes 96% to N112.7 Million

Northern Nigeria Flour Mills Plc has reported a pretax profit of N112.7 million for the financial year ended March 2026. This represents a steep 96.09% decline from the N2.8 billion recorded in the previous year.

The audited results, filed on the Nigerian Exchange, show that revenue fell to N21.5 billion from N35.3 billion. The weaker performance was driven mainly by lower sales in the agricultural products segment.

Key financial highlights for the year ended March 2026 compared to March 2025:

Revenue: N21.5 billion vs N35.3 billion
Cost of sales: N19.7 billion vs N30.2 billion
Gross profit: N1.7 billion vs N5.1 billion
Operating profit: N329.7 million vs N2.8 billion
Pretax profit: N112.7 million vs N2.8 billion
Post-tax profit: N25.6 million vs N1.7 billion
Retained earnings: N4.48 billion vs N4.46 billion

Driving the numbers

Revenue weakened significantly, driven mainly by maize sales which dropped sharply from N10.2 billion to N2.2 billion. Wheat product sales slipped slightly to N18.6 billion from N19.8 billion but remained the largest revenue contributor. Sorghum revenue also fell heavily to N712.9 million, a 76.51% decline.

Lower sales from mixed products and the absence of other revenue further pressured overall performance. Cost of sales declined to N19.7 billion from N30.2 billion, while gross profit settled at N1.7 billion, down from N5.1 billion.

On the positive side, other operating income rose to N300.9 million from N138.3 million, supported by stronger sundry income from scrap sales. The company also cut operating expenses. Selling and distribution costs fell 50.9% to N139.8 million, while administrative expenses eased to N1.5 billion.

After finance costs and taxation, profit after tax settled at N25.6 million, down sharply from N1.7 billion in the previous year.

Balance sheet

Total assets expanded to N43.1 billion from N30.5 billion, with inventories valued at N19.1 billion accounting for the largest share. Liabilities rose to N31.03 billion from N20.8 billion, driven largely by borrowings which increased from zero to N15.02 billion. Total equity climbed to N12.1 billion from N9.6 billion, while retained earnings remained solid at N4.48 billion.

Market reaction

Shares of Northern Nigeria Flour Mills are currently priced at N79.40, down 5.81% year-to-date. The stock last traded on 6 February 2026, when it fell 3.47%. Flat price action has persisted through 26 May 2026.