Honeywell Flour Mills Records Impressive Results, Posts N53.27Bn Revenue

Honeywell Flour Mills Plc. has released its audited financial results for the full year ended 31st March, 2017.

The Company recorded a remarkable 191 percent increase in gross profit from N4.36 billion to N12.71 billion in the financial year under review.

It also grew total revenue from N50.88 billion in 2016 to N53.23 billion in 2017, representing a 5 percent increase year-on-year.

The Company achieved a 291 percent increase in profit before taxation, to N5.47 billion in 2017 from a loss position in 2016. Consequently, the Company declared a dividend of 6 Kobo per ordinary share to its shareholders at its just concluded 8th Annual General Meeting, held on Friday, 22nd September 2017.

Speaking during the Annual General Meeting (AGM), Dr. Oba Otudeko, chairman of the Company, said the Company’s current performance indicated a leap from the results of the financial year 2016.

Dr. Otudeko attributed the improved earnings and profits to the Company’s relentless focus on lower cost sourcing for raw materials and foreign exchange and increased efficiency in manufacturing. “In FY2017, we reaped the benefits of a well-executed input cost management strategy”, he added.

Speaking further, the Chairman said: “Our results show continued growth and a substantial step-up in profitability despite the volatile economic environment. It was achieved largely through improved efficiency. Our manufacturing function drove further efficiencies through continuous improvement projects that enhanced engineering and plant maintenance processes and ensured higher levels of production efficiency.”

Also speaking at the AGM, Mr. Lanre Jaiyeola, managing director of HFMP, noted that the Company was making significant changes to its business in order to lay a better platform for the years ahead. “In FY2018 and on the heels of an improving economic environment, we expect to record further improvements in performance, reigniting our growth agenda and extracting increased efficiency and cost reduction through a recently launched company-wide transformation and continuous improvement programme.”, Jaiyeola said.

Reacting to the results, a shareholder, Sir Sunny Nwosu, commended the Company’s efforts at ensuring that it remains on the path of growth, urging them to continue to focus on lower cost sourcing for raw materials.

Nwosu charged the board and management to remain steadfast with its aggressive strategies to further grow market share and increase revenue significantly in alignment with its mandate.

Also, the Chairman assured shareholders of the board and management’s dedication, diligence and commitment to the company’s mission, which is to produce consistently good quality flour and other wheat based products for the complete satisfaction of its highly valued customers and consumers.