NATIONAL Flour Mills (NFM) chairman Ashmeer Mohamed said the newly articulated US foreign policy, including potential widespread tariffs, may further destabilise global food prices.
Mohamed made the statement in his report on the company’s audited financial statements for the year ended December 31, 2024.
He said in 2024, the company operated in a challenging global economic environment characterised by ongoing geopolitical tensions, evolving international trade policies, and climate change impacts.
“Additionally, the withdrawal of the United States 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. NFM remains cognisant of these potential impacts and strategically prepares to mitigate associated risks to sustain profitability.”
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Mohamed said despite these challenges, NFM’s gross profit increased by six per cent from $152 million in 2023 to $161 million in 2024. However, the company’s revenue experienced a nine per cent decline from $577 million in 2023 to $523 million in 2024.
He said the increase in gross profit was driven by a 15 per cent reduction in the cost of sales, resulting from prudent grain procurement and improved operational efficiencies. He said despite fluctuations in global grain prices, the measures allowed them to manage costs and enhance profitability effectively.
Additionally, NFM successfully reduced finance costs by 71 per cent, resulting in a increase in net profit after tax by 25 per cent, from $35.4 million in 2023 to $44.1 million in 2024.
Mohamed said total comprehensive income also increased from $32.9 million to $51.6 million, resulting in a rise in earnings per share from 30 to 37 cents. He said the continued investment in plant modernisation, particularly the acquisition of new packaging equipment, has led to an increase in total assets from $447 million to $471 million.
Mohamed said NFM is aiming to significantly grow its market presence regionally and internationally, building on its substantial investments in modernisation and capacity expansion.
“Increasing our exports is essential to our strategic vision, as we aim to become a leading foreign exchange earner through our flour, feed, pet food and dry-mix product lines. Our dry-mix products already have a strong foothold in Caribbean markets, the United States, and Canada, and we intend to pursue further opportunities, particularly within diaspora communities abroad actively.”
Mohamed said NFM continued to invest substantially in employee training and development.
“By aligning our human resource strategy with global best practices - emphasising reskilling, digital capabilities, and data-driven decision-making – we are positioning NFM to thrive in a competitive international marketplace.”
