Honeywell Flour Mills reports 73.1% increase in profit to N1.13bn
By Kayode Tokede
Honeywell Flour Mills reported a profit after tax of N1.13 billion in its 2020 audited full-year financial result, which ended 31st March 2021.
The food-producing company grew its bottom line by 73.1per cent from N650.49 billion recorded in 2019 to N1.13 billion in 2020.
The company recorded double-figured growth despite the effect of the covid-19 pandemic on the Nigerian economy. It also crossed the N100 billion revenue mark in the review year. Its revenue for the period stood at N109.59 billion in 2020.
Its revenue grew by 36.2per cent from N80.45 billion recorded in 2019 to N109.59 billion in 2020, while gross profit, however, declined from 17per cent recorded in the previous year to 14per cent in 2020.
Also, operating profit increased by 39.1per cent in 2020 to stand at N7.65 billion.
It is worth noting that the reduction in the firm’s selling and distribution expenses during the period translated into a 39.1per cent increase in its operating profit from N5.5 billion in 2019 to N7.65 billion.
The company, however, spent a sum of N4.59 billion as employee cost, indicating a 12per cent increase compared to N4.1 billion recorded in the previous period, while also increasing its staff strength from 819 as of 2019 to 832 at the end of 2020.
A cursory look at the report, reveals that the entire revenue was generated from sales of goods within Nigeria, with none received outside the shores of the country. Notably, the company’s business operating segments are identified by three factories, with the Apapa factory generating the highest revenue of N85.02 billion in 2020.
The Sagamu plant followed with total revenue of N19.1 billion, accounting for 17.4per cent of the total revenue, while Ikeja generated N5.49 billion for the company.
While speaking on the results, the Managing Director of Honeywell Flour Mills, Lanre Jaiyeola, said: “In an extremely challenging year caused by unprecedented global disruptions and uncertainties, we achieved 36per cent 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 optimisation, 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,” he added.
Honeywell Flour Mills Plc is a leading food company producing, marketing, and selling food products in the fast-moving consumer goods (FMCG) space in Nigeria.
According to the company, the future of its business would be shaped by continued investment in innovative product development, advanced technology infrastructure, and operational efficiency.
In only its second year of operation, the company’s new world-class factory at Sagamu in Ogun State with an annual Pasta Production capacity of 138,600 Metric Tonnes, contributed over N19 billion to the company’s overall revenue in 2020.
