NNFM: Audited result reflects N16.234m year loss

The Northern Nigeria Flour Mills Plc has shown the negative impact of Nigeria’s harsh operating environment going by its 2017 audited financial statement, which however showed gradual recovery.

The company’s 2017 audited result for the period ended 31 March, 2017, released by the Nigerian Stock Exchange (NSE), showed gradually growth in key performing indices.

The company’s audited financial statement for the year ended 31 March, 2017, showed that revenue grew to N940, 521, from N979,038 recorded in the preceding period of 2016

Cost of sales dropped to N967, 784, from N1, 079,755 cost of sale posted in the first quarter 2016.

Gross loss dropped to N27, 263, against N100, 717 recorded in 2016 first quarter, while Net operating gains and losses closed the first quarter at N429, 984 from N246, 552 posted in the prior period of 2016.

Selling and distribution expenses closed the year at N50, 086, which was against N11,619 recorded in the preceding period.

Administrative expenses reduced slightly to N279, 568, from N324, 366 recorded in the 2016 financial year.
Operating profit dropped to N12 8,364, from N280, 480 recorded in 2016, while investment revenue dropped to N23, 98, against N47, 409 in 2016.

Meanwhile, an evaluation of the company’s management strategies and plans to revive the company hinges strongly on diversification of operations to include sorghum production.

The company’s auditors confirmed the implementation of management’s plan to diversify into sorghum by inspecting the upgrade being made to the D-Mill and assessing the viability by confirming the existence of adequate demand for the product, also checking that sales of the product to the parent company is on a sustainable basis.

It was disclosed that the company receives the strong support of its parent company to aid its recovery plan. During the year, the parent company provided a working capital loan of N800 million and a capital project loan of N1.4 billion to support the financing of the company’s sorghum mill project.

As at March 31, 2016, the company said its Total Assets improved by 152 percent from N1.7b to N4.3 billion as liabilities grew to N3.1b from N488m in 2016.

The company said “No asset of it was pledged as security for loans during the reporting period (2016: Nil) and that it had had no contractual commitments for the acquisition of property, plant and equipment.