NFM Profitability Slips Amid Rising Grain Prices

National Flour Mills (NFM) has reported a decline in profitability for the first six months of 2026, citing rising grain prices as a major contributor to increased production costs.

The company's revenue for the period ending June 30, 2026, rose slightly to $263 million, a 1.1% increase from the same period last year. However, higher operating costs reduced earnings, with gross profit falling 3.5% to $78.9 million and after-tax profit slipping 2.4% to $22.2 million.

NFM Chairman Hamlyn Jailal noted that the increase in cost of sales was largely driven by higher grain prices on international markets. He emphasized that despite these challenges, the company strengthened its balance sheet during the six-month period, with total assets increasing from $527.9 million to $559.5 million.

Jailal highlighted the successful conclusion of wage negotiations with the Seamen and Waterfront Workers Trade Union (SWW TU) covering January 2023 to December 2025 as a significant accomplishment for the company. He expressed optimism about NFM's prospects for the remainder of the year, while acknowledging that global commodity markets, freight rates, and energy prices will continue to influence the company's cost structure.