Northern Nigeria Flour Mills

[billions]

NORTHERN NIGERIA FLOUR MILLS PLC
PERIOD ENDED 30-09-2008 (HALF YEAR)
2008 2007
TURNOVER N4.694b N2.448b
PROFIT BEFORE TAXATION N82.343m N42.413m
TAXATION (N7.164m) (N10.098m)
PROFIT AFTER TAXATION N75.179m N32.315m

[hispy99]

Originally Posted by billions

NORTHERN NIGERIA FLOUR MILLS PLC
PERIOD ENDED 30-09-2008 (HALF YEAR)
2008 2007
TURNOVER N4.694b N2.448b
PROFIT BEFORE TAXATION N82.343m N42.413m
TAXATION (N7.164m) (N10.098m)
PROFIT AFTER TAXATION N75.179m N32.315m

This is a "marginless" business. Net margin is less than 2%!

[hispy99]

Latest Market Info
NNFM: 3RD QTR DEC 2008

NORTHERN NIGERIA FLOURMILLS PERIOD ENDED 3RD QUARTER ENDED 31-12-2008

TURNOVER 08 N6.589b, 07 N3.753b

PBTAXATION 08 N107.423m, 07 N94.947m

TAXATION 08 (N8.018m) 07 (N9.360m)

PATAXATION 08 N99.405m 07 N85.587m

BAL SHEET INFO 08 N1.153b, 07 N1.059b

STOCK 08 N1.065b, 07 N680.299m

TRADE DEBTORS 08 N93.516m, 07 N881.683

CASH & BANK BAL 08 N795.338m, 07 N465.664m

CASH & BANK BAL 08 N795.338m, 07 N465.664m

TRADE CREDITS 08 N268.170m, 07 N369.573m

OTHER CREDIT BAL08 N1.306b, 07 N1.360b

WORKING CAPITAL 08 N691.377m, 07 N596.685m

NET ASSETS 08 N728.361m, 07 N695.783m

[zainabusman]

Originally Posted by hispy99

This is a "marginless" business. Net margin is less than 2%!

Indeed. The 3rd qtr just realesed is not better.

Turnover more than N6 billion but PAT just under N100 million. Not the kind of business to be in.

[hispy99]

Northern nigeria flour mills plc proposed a dividend payment of 40kobo per share. Closure date: 21st - 25th september, 2009; payment date: 30th october, 2009.

[hispy99]

31-Mar-09 12 Mths N8,533,000 N309,515 (N73,236) N236,279
31-Mar-08 12 Mths N5,500,000 N70,542 (N12,956) N57,586
55.15% 338.77% 310.31%

PROPOSED DIVIDEND PAYMENT OF N40KOBO PER SHARE. CLOSURE DATE: 21ST - 25TH SEPTEMBER, 2009. PAYMENT DATE: 30TH OCTOBER, 2009.
FIXED ASSETS:- 09: N352.4MILLION, 08: N359.7MILLION; NET ASSETS - 09: N865.2MILLION, 08: N666.0MILLION

[hispy99]

The share price of northern nigeria flour mills was adjusted for a dividend payment of 40kobo per share.

[pumping]

NORTHERN NIGERIA FLOUR MILLS PLC INTERIM REPORT
FOR THE PERIOD ENDED 30TH SEPTEMBER 2009 SECOND QUARTER
2009 2008
TURNOVER N5.360b N4.694b
PROFIT BEFORE TAXATION N425.403m N82.343m
TAXATION (N96.695m) (N7.164m)
PROFIT AFTER TAXATION N328.709m N75.179m
BALANCE SHEET INFORMATION 30-09-09
FIXED ASSETS N369.628m N352.434m
STOCK N913.139m N895.822m
TRADE DEBTORS N106.932m N95.834m
CASH AND BANK BALANCES N772.828m N1.120b
OTHER DEBIT BALANCES N393.146m N294.714m
TRADE CREDITS N253.369m N2.378m
SHORT TERM BORROWINGS NILL N134.884m
OTHER CREDIT BALANCES N1.165b N1.757b
WORKING CAPITAL N1.384b N888.451m
NET ASSETS N1.136b N865.169m

[wanaj0]

Originally Posted by pumping

NORTHERN NIGERIA FLOUR MILLS PLC INTERIM REPORT
FOR THE PERIOD ENDED 30TH SEPTEMBER 2009 SECOND QUARTER
2009 2008
TURNOVER N5.360b N4.694b
PROFIT BEFORE TAXATION N425.403m N82.343m
TAXATION (N96.695m) (N7.164m)
PROFIT AFTER TAXATION N328.709m N75.179m
BALANCE SHEET INFORMATION 30-09-09
FIXED ASSETS N369.628m N352.434m
STOCK N913.139m N895.822m
TRADE DEBTORS N106.932m N95.834m
CASH AND BANK BALANCES N772.828m N1.120b
OTHER DEBIT BALANCES N393.146m N294.714m
TRADE CREDITS N253.369m N2.378m
SHORT TERM BORROWINGS NILL N134.884m
OTHER CREDIT BALANCES N1.165b N1.757b
WORKING CAPITAL N1.384b N888.451m
NET ASSETS N1.136b N865.169m

More reason to hold on to Flour Mills. They own majority share in Northern Flour Mills.

[hispy99]

NORTHERN NIGERIA FLOURMILL PLC INTERIM REPORT FOR THE PERIOD ENDED 31ST DECEMBER 2009 (THIRD QUARTER)
2009 2008 %CHANGE
N’b N’b
TURNOVER 7.920 6.589 20.20
PROFIT BEFORE TAXATION 522.713 107.423 386.6
TAXATION (134.406) (N8.018m) 1,576.3
PROFIT AFTER TAXATION 388.307 99.405 290.63

[pumping]

Originally Posted by hispy99

NORTHERN NIGERIA FLOURMILL PLC INTERIM REPORT FOR THE PERIOD ENDED 31ST DECEMBER 2009 (THIRD QUARTER)
2009 2008 %CHANGE
N’b N’b
TURNOVER 7.920 6.589 20.20
PROFIT BEFORE TAXATION 522.713 107.423 386.6
TAXATION (134.406) (N8.018m) 1,576.3
PROFIT AFTER TAXATION 388.307 99.405 290.63

PAT growth rate dropped significantly this quarter.
PAT only grew by N60m compared to N320m for the first 2 quarters which averaged N160m per quarter. This may dent the PAT growth of Flourmills but not significantly and the positive result from Bagco should make up for it.

[nosa2]

Originally Posted by pumping

PAT growth rate dropped significantly this quarter.
PAT only grew by N60m compared to N320m for the first 2 quarters which averaged N160m per quarter. This may dent the PAT growth of Flourmills but not significantly and the positive result from Bagco should make up for it.

positive result from bagco ke? If my memory is correct bagco's result was not fantastic

[pumping]

Originally Posted by nosa2

positive result from bagco ke? If my memory is correct bagco's result was not fantastic

It is good relative to the loss they made last year due to foreign exchange losses. PAT has now jumped from 75m in Q-3 2008 to N371m in Q-3 2009.

[nosa2]

Originally Posted by pumping

It is good relative to the loss they made last year due to foreign exchange losses. PAT has now jumped from 75m in Q-3 2008 to N371m in Q-3 2009.

I understand where you're coming from, but they need to share the loot 6billion ways. Anyway this NNFM is looking juicy o, assuming they make 120m in 4th quarter we'll be looking at eps of about N5. Guys i need to hear the bad side of this stock because @ current price i'm thinking about it seriously

[hispy99]

Originally Posted by nosa2

I understand where you're coming from, but they need to share the loot 6billion ways. Anyway this NNFM is looking juicy o, assuming they make 120m in 4th quarter we'll be looking at eps of about N5. Guys i need to hear the bad side of this stock because @ current price i'm thinking about it seriously

Still looks good but not as great as it did when they released their 6M result. Net profit margin shrunk from 6.1% (6M) to 4.9%(9M). This might be a reflection of the increase in wheat prices over the last 3 months of 2009. Q3 PAT was a paltry N60M, so your N120M might turn out to be too high.

[pumping]

Originally Posted by hispy99

Still looks good but not as great as it did when they released their 6M result. Net profit margin shrunk from 6.1% (6M) to 4.9%(9M). This might be a reflection of the increase in wheat prices over the last 3 months of 2009. Q3 PAT was a paltry N60M, so your N120M might turn out to be too high.

Yes, exactly the point I was making. The PAT growth drop rate has dropped.

[horlads]

Originally Posted by nosa2

I understand where you're coming from, but they need to share the loot 6billion ways. Anyway this NNFM is looking juicy o, assuming they make 120m in 4th quarter we'll be looking at eps of about N5. Guys i need to hear the bad side of this stock because @ current price i'm thinking about it seriously

To me liquidity is a bad side...my spreadsheet has NNFM having 148.5m shares outstanding with Flour Mills of Nigeria Plc holding 52.6%, a certain Dantata Inv. & Securities Ltd. owns 6.5% and Northern Nig. Inv. Ltd. owns 8.0%. that leaves only 32.9% (45 million units) available for Exchange float.
i once thought of having a shot at it but....low volumes prompted me to investigate further...Happy investing

[nosa2]

Thanks a lot for the responses, i recognise the drop in the growth rate of the pat, but even with that its still relatively cheap when compared to other flour milling companies. On the issue of low float, i believe it affords them the flexibility to issue bonus shares and i'm actually of the opinion that they might just do that this year. Anyway once i start cashing out of my current stocks i'll bid for this (assuming the price is still in this region)

[pumping]

Originally Posted by nosa2

Thanks a lot for the responses, i recognise the drop in the growth rate of the pat, but even with that its still relatively cheap when compared to other flour milling companies. On the issue of low float, i believe it affords them the flexibility to issue bonus shares and i'm actually of the opinion that they might just do that this year. Anyway once i start cashing out of my current stocks i'll bid for this (assuming the price is still in this region)

With Flour Mills holding sway, I hope you are right. The management of Flourmills have not been known to go the path of bonus shares too often.

[hispy99]

FSDH NNFM 3Q Report