Honeywell Flour Mills Plc records loss of N145m in Q3 2021

Honeywell Flour Mills Plc released its Q3 Unaudited Financial Statement, revealing a 26.77% growth in revenue from N25.22 billion to N31.97 billion in the current period. The company reported a loss after tax of N145 million from a profit position of N120 million in the corresponding period of 2020.

In the 9-month period ended December 2021, revenue recorded stood at N99.88 billion from N82.13 billion in the prior-year period. Net profit, however, declined by 35.29% from N323 million in 2020 to N209 million.

The Company’s business operation segments are identified by three factory locations at Apapa, Ikeja, and Sagamu. The Apapa factory manufactures flour, semolina, wheatmeal, and brown flour while the Ikeja and Sagamu factories manufacture noodles and Pasta, respectively.

Based on the above information, the Apapa factory recorded more sales than the other factories, raking in N78.75 billion, while Ikeja and Sagamu factories generated N5.54 billion and N15.59 billion, respectively.

The financial report shows that in the nine-month period, the company generated more revenue from the sale of flour, semolina, wheatmeal, and brown flour, followed by sales in pasta and the least revenue from noodles.

Selling and administrative expenses declined by 23.21% from N7.11 billion a year earlier to N5.46 billion in the 9month period.

Finance income stood at N604 million during the period.

Operating profit depreciated by 14.62% from N5.23 billion to N4.48 billion.

Tax expense as well amounted to approximately N497 million in the period under review, as contained in the financial statement.

The company’s net assets decreased by N435 million from N57.97 billion recorded as at March 2021 to N57.53 billion in the period under review. However, Total assets stood at N141 billion.

Honeywell Flour Mills Plc last traded at N3.35 per share and its market capitalisation stands at N26.57 billion as at Monday, February 14, 2022. Year-to-date performance shows that the share price of the company has declined by 1.47%.