NFM profits rise in fiscal 2023

NATIONAL FLOUR MILLS has reported a profit after tax of $35.5 million for the year ending December 31, 2023, in its audited summary consolidated financial statements, released last week.

For the same period in 2022, NFM earned $6.9 million in profit.

NFM chairman Nigel Romano in his statement said it earned $577.3 million in revenue, up from $532 million for the same period the year before and reduced the cost of sales by three per cent to $425.2 million, down from $439.8 million the year before.

Operating profit also saw a $46.9 million year-on-year increase from $12.4 million in 2022 to $152 million in 2023.

Romano said changes in the global environment, driven by lingering fallout from the covid19 pandemic and wars in the Ukraine and Gaza, continued to influence the way NFM did business, but he attributed the increases to cost management initiatives and prudent grain purchasing.

“As a food and feed manufacturing company NFM is particularly vulnerable to the impact of climate change on the yield and price of grains. Therefore we remain concerned about the impact of climate change as evidenced by increasing levels of greenhouse gasses, rising sea levels and record low Antarctica sea ice with 2023 being categorised as the warmest year on record,” he said.

Romano said the company’s intention is to establish a footprint regionally then internationally as a food and feed manufacturing company.

“It will also focus on improving margins by working on increasing productivity across the organisation, beginning with the full automation of our packaging processing for food and feed products,” Romano said.