WATCH THE VIDEO HERE Flour Mills of Nigeria Plc in the six months ending September 30, 2024, reversed its losses posting a pre-tax profit of N19.7 billion. This is according to the company’s unaudited financial statement for the second quarter of 2024/2025 reporting period ending September 2024. The company in the period saw a reversal of fortunes from its performance in the same period of 2023/2024 where it posted a pre-tax loss of N8.13 billion. Flour Mills during the period under review saw its revenues reach N1.69 trillion from N964.6 billion in the same period of 2023. However, cost of sales gulped around N90% of the revenues during the period at N1.53 trillion. Commentary: The 79% increase in cost of sales nearly matching revenue, resulted in a gross profit margin squeeze, with gross profit up by only 53% to N161.09 billion. This margin compression suggests that rising production or input costs are a significant challenge, reducing the efficiency of revenue growth in translating to gross profit.