NIGERIA – The wheat based products manufacturer Honeywell Flour Mills Plc has announced 34% growth in revenue to US$197.80 million from US$147.17 million recorded in the year 2017, even as it plans to start production on the new factory in Sagamu next month.

According to the Guardian, the company’s gross profit grew by 26% from US$35.13 million in previous year to US44.54 million, as well as improved profit after tax of US$12.17 million.

The company said the period was helped by its continued focus on was consistent delivery of profitable top line growth through high capacity utilisation.

Speaking on the yearly financial report, Chairman of Honeywell Flour Mills, Dr. Oba Otudeko said the firm will remain committed to its vision to build strong market, highly desired and recognisable consumer products that are well distributed across the country in the new financial year.

He however called on the federal government to address transport challenges experienced in some areas, something that is affecting businesses operating from such regions.

According to him, the government should allow active participation of the private sector in the development and operation of ports in strategic regions of the country geared at improving trade.

Yearly results were weighed down by macroeconomic challenges, including higher energy and transportation costs but the company was able to offset this through meticulous execution of its Continuous Improvement Strategy.

The company implemented strategic projects to limit production losses, conserve energy, and to reduce downtime from equipment failure.

The management also implemented a carefully planned input-cost management strategy to ensure profitability, even amidst the pressures of the tough operating environment.

“Throughout the period under review, Honeywell Flour Mills Plc was focused on its mission to provide nutrient-fortified food products to more than 1.3 billion consumers, in furtherance of its ambition to significantly contribute to food security in Nigeria,” said Managing Director, Honeywell Flour Mills, Mr Lanre Jaiyeola.

“The company remains very optimistic about the future of the business and we look forward to the new financial year with excitement given the enormous work that has been done to ensure commencement of production at the new factory site in Sagamu and roll out of new products.”

The shareholders of Honeywell Flour Mills Plc approved US$1.31 million total dividends for the 2018 financial year.