NNFM doubles revenue in FY2020, recommends dividend

NORTHERN Nigeria Flour Mills in its audited financials for the year ended March 31, 2020, has indicated over a 100 per cent growth in revenue and a return to profit before and after-tax, following which the directors have recommended a dividend of N26.73 million, 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 the financial result presented to the Nigerian Stock Exchange (NSE), sales revenue of the company leaped by 113.04 per cent from N4.149 billion in the 2019 full-year to N8.841 billion.

Analyses indicated that the bulk of the revenue was the N7.735 billion from sale of goods, which rose from N3.379 billion, while rendering of services (contract milling fees) climbed from N770.766 million to N1.105 billion. Cost of sales for the period rose by N4.395 billion; resulting in gross profit of N295.763 million or 50.96 per cent to N7.656 billion from N3.569 billion boosted by the N6.969 billion cost of raw materials consumed.

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

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

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

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