Honeywell Flour Mills posts US$12m profit

NIGERIA – Shareholders of Honeywell Flour Mills Plc last Friday approved N475.812 million for the year ended March 31, 2017.

The dividend, which translates to six kobo per share, was approved at the annual general meeting (AGM) of the company held in Lagos.

The company recorded revenue of N53.23 billion (US$148m), up by five per cent compared with N50.88 billion posted in the 2016. Gross profit soared by 191 per cent from N4.36 billion to N12.71 billion.

The company achieved a profit before taxation,  of N5.47 billion in 2017 from a loss  of N2.869 billion in 2016, while profit after tax stood at N4.304 billion (US$12m) as against a loss of N3.023 billion in 2016.

Consequently, the company declared a dividend of six Kobo per ordinary share to the shareholders.

Speaking during the AGM, Chairman of Honeywell Flour Mills, Dr. Oba Otudeko, said that the company’s current performance indicated a leap from the results of the financial year 2016.

He 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. 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,” Otudeko said.

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

Speaking in the same vein, Managing Director of the company, Mr. Lanre Jaiyeola, 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.

Meanwhile, 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.

ThisDay

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