Honeywell Flour Mills posts N2.4bn loss in Q1 2022 amid global inflationary strains
Honeywell Flour Mills Plc (HFMP), a food manufacturer in Nigeria, announced financial figures for the quarter that ended June 30, 2022.
The company saw a revenue N40.6 billion, up by 23 per cent compared to N33 billion recorded in the corresponding quarter of 2021.
However, it reported a N2.4 billion loss for the period compared to a profit of N150 million in the corresponding quarter of 2021.
According to the company, this is due to the impact of the unprecedented socio-economic environment and global inflationary strains.
The company which became a member of Flour Mills of Nigeria Group on the 12th of May 2022 after the successful completion of the acquisition transaction says it continues to take pragmatic steps towards building a more sustainable brand.
In a disclosure signed by Osomomen Olukoya, the company secretary, it stated, “The quarter reflects the impact of the unprecedented socio-economic environment and global inflationary strains. These market disruptions led to incessant increases in input costs, particularly of wheat and diesel which pushed up prices of the company’s products relative to locally produced substitutes. HFMP is expected to be earnings and margin accretive during the latter part of this year.”
Following the company’s acquisition by FMN, Nigeria’s leading producer of quality products and owner of the iconic brand ‘Golden Penny,’ HFMP is now poised to become a robust Nigerian entity that can better leverage financial, technical, and human resources as part of Nigeria’s largest food company.
Speaking on the plan in place by the company to ensure that the HFMP continues to maintain market relevance, Nassib Raffoul, the Managing Director of the company commented, “We are confident that our performance in the second quarter of the year will record significant improvement. We are deploying measures to cushion the effect of the exacerbating input prices while also strengthening and expanding our business portfolio by accessing new markets and driving margin improvement through operational efficiency.
“We will continue to execute our five core strategic pillars through three drivers of growth, efficiency and capability. And with consumers’ behavior evolving faster than ever, we are adapting to this new reality by executing with speed to meet the need of our multiple stakeholders. We are committed to investing in our capabilities, know-how, and talents to continue to create value.”
Flour Mills of Nigeria (FMN) announced that it has obtained all the necessary regulatory approvals to acquire a 71.69 per cent stake in Honeywell Flour Mills (HFMP) and another 5.06 per cent stake in HFMP held by First Bank.
The acquisition is expected to bring together two businesses with shared goals to create a more resilient national champion in the Nigerian foods industry.
