Chairman: NFM achieves ‘acceptable’ profits

National Flour Mills (NFM) reported a profit after tax of $26 million for the nine months ending September 30, a turnaround from the same period the year before, when it reported a million-dollar loss.

Chairman Nigel Romano expressed pleasure over the improvement in financial results, calling it “acceptable.”

“We still have work to do,” he said.

NFM earned $431 million in revenue, a 16 per cent increase over the same period in 2022, and a gross profit of $110 million in 2023, a 25 per cent increase.

He attributed the increase in profits to improved operational efficiency, reductions in grain prices, improved product offerings and closer collaboration with commercial and retail customers.

However, he remained wary over global shocks.

“While experts are predicting that grain prices will remain favourable due to increased supplies from the US, Russia and Ukraine, the very volatile geopolitical environment and the impact of a change in climate suggest the need for prudence.

“The escalation and spread of the Israel-Hamas war poses a major risk to the global economy in the form of higher energy prices and trade disruption, which could result in increased prices for soybean and corn.”

He said along with geopolitical issues, the company is keeping a close eye on the effects of climate change on global food supplies.

He added that the company continues to upgrade its plants to modernise operations.