Trinidad’s National Flour Mills reported a 200 percent jump in profit for the six months to June to $20.57 million versus only $6.79 million in 2014 and earnings per share of 17 cents and 10 cents for the quarter.
Profit fell in the June quarter from that of last year to $11.7 million versus $14.3 million but from higher revenues as profit margin shrank to 23 percent from 26 percent. Revenues climbed 15 percent for the six months to $245 million and a 10 percent gain to $124 million for the June quarter.
Helping the company is the sharp fall in the price of wheat on the world market from a high of more than US$700 to just over US$500 now but below US$500 per tonnes for quite a bit of the reporting period this year. National Flour earnings for the full year to December should end around 40 cents per share. 
The stock trades at $2.10 around 5 times earnings, a low valuation and if the company can maintain the level of profit now being generated and hopefully improve on that in 2016, the stock stands to generated a good level of appreciation. Investing in the stock is not without risk. The largest item of cost, wheat and the ability for management to adjust prices if wheat prices increase can be critical.
Borrowings have declined from $122 million at the end of the financial year in December last year to $57 million at the end of June while cash fuds are at $57 million while equity stands at $215 million.
The company shares are listed on the Trinidad Stock Exchange.
Huge jump in National Flour’s profit
Trackbacks
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[…] National Flour Mills reported a 200 percent jump in profit for the six months to June of $20.57 million versus only $6.79 […]