Low raw materials cost, improved FX push Honeywell profit by N8.35bn

Honeywell Flour Mills Plc (HFMP), a leading food production company in Nigeria, has released its audited financial results for the full year which ended on March 31, 2017.

At its just concluded 8th annual general meeting (AGM), held on Friday, the company announced an impressive 191 percent increase in gross profit from N4.36 billion to N12.71 billion in the financial year under review.

Total revenue also experienced a five percent year-on-year increase from N50.88 billion in 2016 to N53.23 billion in 2017.

The company also declared a profit before tax of N5.47 billion in 2017 from N2.87 billion in 2016, showing a 291 percent increase from the previous year.

As part of the proceedings, the board of directors proposed a dividend of N475,811,859 translating to a dividend of six kobo per ordinary share to its shareholders, which according to the financial statement, will be paid in full upon approval by members on September 25.

Speaking at the AGM, Oba Otudeko, the chairman, maintained that the company’s current performance indicated a positive leap from the results of the 2016 financial year.

Otudeko attributed the improved earnings and profits to the company’s insistent efforts on lowering costs of raw materials used in the production process, reduced costs for foreign exchange and increased efficiency in manufacturing.

“In FY 2017, we reaped the benefits of a well-executed input cost management strategy,” he said.

“Our manufacturing function drove further efficiencies through continuous improvement projects that enhanced engineering and plant maintenance processes and ensured higher levels of production efficiency.”

Lanre Jaiyeola, managing director of HFMP, also noted that the company has made enviable strides in restructuring its business operations in order to lay a firm foundation for the coming years.

“In FY 2018 and on the heels of an improving economic environment, we expect to record further improvements in performance, reigniting our growth agenda and extracting increased efficiency and cost reduction through a recently launched company-wide transformation and continuous improvement programme,” Jaiyeola revealed.

Investors, who were in attended the AGM, commended the board and management for “fostering and implementing all-inclusive strategies” to further grow the company’s market share and increase revenue significantly in alignment with its mandate.