Honeywell Flour Mills boasts of 73% rise in full year profit attributed to operational efficiency

NIGERIA – Leading flour milling company in Nigeria, Honeywell Flour Mills Plc has recorded an all-time high revenue of N109.5 billion (US$266.8m) in the year ended March 2021, reflecting a 36% jump over N80.4 billion (US$195.9m) posted in the previous year.

The rise in earnings is attributed to increased production output and more efficient operational capabilities at its factories in Apapa, Sagamu and Ikeja.

Despite the increase in production activities, challenges with forex and COVID-induced disruptions in global trade, affected the sourcing of raw and packaging materials leading to cost of sales growing by 41% to N93.9 billion (US$228m) from N66.5 billion (US$162m) in the previous financial year.

However, the company’s Operating Profit grew faster than revenue at 39%, from N5.4 billion (US$13.1m) in FY 2020 to N7.6 billion (US$18.52m) in FY 2021.

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This was due to improved efficiencies and cost optimization strategies which saw selling and distribution expenses decrease by 8% to N5.5 billion (US$13.4m), while general and administrative expenses only slightly increased by 4% from N2.4 billion (US$5.85m) in FY 2020 to N2.5 billion (US$6.09m) in FY 2021, despite double digit inflation during the period.

“In an extremely challenging year caused by unprecedented global disruptions and uncertainties, we achieved 36% revenue growth and record-breaking success through sheer grit and doggedness of our workforce.

Lanre Jaiyeola – Managing Director, Honeywell Flour Mills, Plc

Consequently, the company grew its bottom line by 73.1% from N650.49 million (US$1.58m) recorded in 2019 to N1.13 billion (US$2.75m) in 2020.

Lanre Jaiyeola, Managing Director, Honeywell Flour Mills, Plc., said, “In an extremely challenging year caused by unprecedented global disruptions and uncertainties, we achieved 36% revenue growth and record-breaking success through sheer grit and doggedness of our workforce.

“We worked collaboratively towards the execution of our goals; improved production and cost optimization, guided by a clear strategy and common purpose. We remain committed to ensuring the supply of affordable nutritious food products to Nigerians, and we continue to assure our shareholders of long-term profitable returns from Honeywell Flour Mills Plc.”

According to the company, the future of its business would be shaped by a continued investment in innovative product development, advanced technology infrastructure and operational efficiency.

This is evidenced by the efficient utilization of its world-class factory in Sagamu, Ogun State which boasts an annual Pasta production capacity of 138,600 Metric Tonnes and contributed over N19 billion (US$46m) to the company’s overall revenue in the 2021 financial year, its second year of operations.

The company will continue to improve its product offerings in order to exceed consumers’ expectations, increase market share, and deliver value to shareholders.

Honeywell Flour Mills Plc is a leading foods company producing, marketing and selling of high-quality food products in the fast-moving consumer goods (FMCG) space.

The Company’s range of products which have become staples in Nigerian homes includes: Honeywell Superfine Flour, Honeywell Bakers Delight Flour, Honeywell Pastry Flour, Honeywell Semolina, Honeywell Whole Wheat Meal, Honeywell Macaroni, Honeywell Spaghetti and the popular variety of Honeywell Noodles.

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