NFM profits rise to $44.1m in 2024

NATIONAL FLOUR MILLS (NFM) has reported an $8.8 million or 25 per cent increase in year-on-year profits after tax, from $35.4 million for the financial year ending December 31, 2023 to $44.1 million for the same period in 2024.

This was revealed in NFM's 2024 annual report released on April 24.

NFM’s statement of comprehensive income reported a nine per cent dip in overall revenue down to $523.4 million in 2024, as compared to $577.3 million in 2023.

However, a 15 per cent reduction in the cost of sales resulted in a gross profit of $161.1 million for 2024 as compared to $152 million for the same period in 2023.

After financing costs, NFM reported a profit before tax of $62.8 million for 2024, an increase from $54.2 million the year before.

NFM chairman Ashmeer Mohammed said prudent grain procurement and improved operational efficiencies were able to help the company continue its growth amid fluctuations in global grain prices and a challenging global economic environment.

"The newly articulated US foreign policy, including widespread tariffs, may further destabilise global food prices.

"Additionally, the withdrawal of the US from the Paris Agreement and renewed emphasis on fossil fuels could undermine global climate objectives and intensify environmental challenges, affecting agricultural productivity worldwide.

"These developments, coupled with escalating global conflicts and stringent immigration policies affecting agricultural labour, pose significant risks to global food security and price stability," Mohammed said.

He said NFM aims to grow its market presence regionally and internationally, making increased exports an essential part of NFM’s strategic vision, seeing that it already has a strong foothold in Caribbean markets.

"We aim to become a leading foreign exchange earner through our flour, feed, pet food and dry-mix product lines," he said. "We intend to pursue further opportunities, particularly within diaspora communities abroad actively."