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

The downturn was primarily attributed to a weaker revenue performance and rising finance costs. Revenue for the year fell to N21.5 billion, down from N35.3 billion in the prior year. This decrease was mainly driven by lower sales within the company’s agricultural products segment.

A closer examination of the income statement reveals that revenue from maize sales significantly weakened, dropping from N10.2 billion to N2.2 billion. Wheat product sales saw a slight decrease to N18.6 billion from N19.8 billion but remained the company’s largest revenue contributor.

Revenue from sorghum also experienced a sharp decline, falling to N712.9 million, a 76.51% decrease compared to the previous financial year. Additionally, lower sales from mixed products and the absence of other revenue further impacted the company’s overall revenue performance.

The cost of sales decreased to N19.7 billion from N30.2 billion, resulting in a gross profit of N1.7 billion, down from N5.1 billion in the prior year. However, other operating income saw an increase to N300.9 million from N138.3 million, boosted by sundry income from scrap sales.

The company also managed to reduce operating expenses. Selling and distribution costs fell by 50.9% to N139.8 million, while administrative expenses eased to N1.5 billion. After accounting for finance costs and taxation, the profit after tax settled at N25.6 million, a steep decrease from the N1.7 billion reported in the previous year.

Despite the weaker earnings, the company’s balance sheet showed resilience. Total assets expanded to N43.1 billion from N30.5 billion, with inventories valued at N19.1 billion representing the largest portion. Retained earnings saw a marginal increase to N4.48 billion from N4.46 billion.