Northern Nigeria Flour Mills Plc reported a sharp decline in profitability for the financial year ended March 2026, as weaker sales performance and rising finance costs weighed heavily on earnings.
According to the company’s audited financial results filed with the Nigerian Exchange, pretax profit fell by 96.09% to N112.7 million, compared to N2.8 billion recorded in the previous financial year.
The company’s revenue also declined significantly to N21.5 billion from N35.3 billion in 2025, largely due to weaker sales across its agricultural products segment.
A breakdown of the company’s earnings showed maize sales recorded the steepest decline, dropping from N10.2 billion to N2.2 billion during the period under review.
Although wheat product sales declined slightly to N18.6 billion from N19.8 billion, the segment remained the company’s largest revenue contributor for the year. Revenue generated from sorghum sales also weakened considerably, falling 76.51% year-on-year to N712.9 million.
The company further experienced lower contributions from mixed products, while the absence of other revenue streams added additional pressure to overall earnings performance.
In line with weaker revenue, cost of sales declined to N19.7 billion from N30.2 billion recorded in the previous year. Consequently, gross profit dropped sharply to N1.7 billion, compared to N5.1 billion in 2025.
Despite the challenging operating environment, Northern Nigeria Flour Mills recorded some improvement in other operating income, which rose to N300.9 million from N138.3 million. The increase was largely supported by stronger sundry income generated from the sale of scraps.
The company also implemented cost-cutting measures during the year, with selling and distribution expenses falling by 50.9% to N139.8 million, while administrative expenses declined to N1.5 billion.
However, higher finance costs and taxation continued to pressure the bottom line, resulting in profit after tax declining steeply to N25.6 million from N1.7 billion in the prior year.
Despite weaker earnings, the company maintained a relatively stronger balance sheet position. Total assets rose by 41% year-on-year to N43.1 billion from N30.5 billion, with inventories valued at N19.1 billion accounting for the largest share of assets.
Total liabilities increased to N31.03 billion from N20.8 billion, driven mainly by borrowings which rose from zero in the previous year to N15.02 billion.
Shareholders’ equity also improved to N12.1 billion from N9.6 billion, while retained earnings edged higher to N4.48 billion.
On the stock market, shares of Northern Nigeria Flour Mills are currently priced at N79.40, reflecting a year-to-date decline of 5.81%.
The stock last traded on 6 February 2026, when it declined by 3.47%, with largely flat price movement recorded through 26 May 2026.
