NFM records $10.2m first-quarter profit

NATIONAL Flour Mills (NFM) and its subsidiaries have reported an after-tax profit of around $10,273,000 for the financial quarter ended March 31, in its unaudited results released this week.

The majority state-owned company saw a 14 per cent increase in gross profit from $32.5 million in the first quarter of 2023 to $37.2 million in 2024, while reporting a decrease in revenue from $141.5 million to $127 million for the same period.

In his review to shareholders, NFM chairman Nigel Romano noted the profit despite a ten per cent decline in revenue. He said this was “mainly due to the reduction in prices as we passed on the reduction in the cost of grain to our customers.” He said a reduction in finance costs also contributed to the increase in profit-before-taxation of $14.5 million, up from $8.45 million last year.

“We continue to monitor the geopolitical situation globally and its impact on the cost of grain and transport,” Romano said, “which adds a lot of volatility to our operating environment and must be carefully and prudently managed.

“We are also monitoring changes in the economic and commercial environment locally and regionally as we focus on offering valued products to satisfy the needs of our customers.

“In this regard, our top priority for 2024 is performance management to improve efficiency and effectiveness of all business processes.”

He said NFM’s board continues to “focus on maintaining an acceptable level of profitability, which will allow us to sustain our operations for the long-term, invest in new machinery and technology and weather economic downturns while meeting our financial obligations.”

Romano highlighted the recent purchase and installation of new plant machinery and the application of an Enterprise Resource Planning software system to improve productivity.

“I am pleased with their ability to seamlessly implement these changes, while continuing to serve our customers,” the chairman said.

“The external environment will continue to provide challenges and we will respond by focusing on what we can control. With the commitment of our team of dedicated employees, we will continue to create value for our customers and our stakeholders.”