Northern Nigeria Flour Mills (commonly known as NNFM() is one of the duo of players in that space listed on the NGX.

Few episodes ago, i covered Honeywell Flour Mills its sister company.

Both are ultimately controlled by FMN Flour Mills of Nigeria now known as Golden Penny Foods.

Audited FY 2025

2025 was a good year for NNFM. Topline and bottomline.

The company made N35.3 billion in revenue. up 36.3% from the previous year.

Profit after tax rose by 14.3% year on year. From N1.5 billion in 2025 to N1.7 billion in 2025.  

Dividends

The company will be paying a 25 kobo final dividend sometime in September, bringing total dividend for the year to 75 kobo. It had earlier paid an interim dividend of 50 kobo

Is this stock expensive or cheap?

From an earnings basis, i think they can easily do a N11 to N13 in earnings for FY 26. At its current price, that would mean its trading anywhere between 11 to 13 times earnings. So not very pricey.

From a growth perspective, in the last 5 years, one has had decent growth in revenue but profit has grown at a much tamer rate.

Revenue has grown at an average growth rate of 43% in the last 5 years

Earnings has grown at an average growth rate of 123% in the last 5 years. 

In my view, i think one can easily see a 15% to 20% upside from where its trading at the moment. SItting on the fence, till the first quarter numbers are out

Cons of the stock

The stock has thin liquidity, as a bit over 50% of the stock is held by FMN. On a regular day, it barely trades 10,000 shares in a day.

Flour milling is a thin margin business, and margins got squeezed this year. 

For 2025, for every N100 in revenue earned by the firm, N4.93 was profit. 

Last year, for every N 100 in revenue earned by the firm, N5.8 was profit.

I am  not a fan of thin margin businesses. At bare minimum, id like to see margins of between 10% to 20%.