Today, leading food manufacturer, Honeywell Flour Mills Plc. (HFMP) announced its audited results for the year ended March 31, 2021. The company recorded an all-time high revenue of N109.5 billion, an increase of 36 percent over N80.4 billion posted the previous year. This was due to increased production output and more efficient operational capabilities at its factories in Apapa, Sagamu, and Ikeja.

Given the increase in production activities, challenges with forex, and COVID-induced disruptions in global trade which affected the sourcing of raw and packaging materials, the cost of sales grew by 41 percent to N93.9 billion from N66.5 billion in the previous financial year. However, the company’s operating profit grew faster than revenue at 39 percent, from N5.4 billion in FY 2020 to N7.6 billion in FY 2021. This was attributable to improved efficiencies and cost optimisation strategies which saw selling and distribution expenses decreased by 8 percent to N5.5 billion, while general and administrative expenses only slightly increased by 4 percent from N2.4 billion in FY 2020 to N2.5 billion in FY 2021, despite double-digit inflation during the period. Consequently, Profit After Tax (PAT) increased by 73 percent, growing from N650 million in FY 2020 to N1.1 billion in the period under review.

Speaking on the full year 2021 financial results, Lanre Jaiyeola, Managing Director, Honeywell Flour Mills, Plc., said: “In an extremely challenging year caused by unprecedented global disruptions and uncertainties, we achieved 36 percent 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.”

Lanre Jaiyeola, Managing Director, Honeywell Flour Mills Plc

According to the company, the future of its business will be shaped by continued investment in innovative product development, advanced technology infrastructure and operational efficiency. This is evidenced by the efficient utilisation of its world-class factory in Sagamu, Ogun State which boasts an annual pasta production capacity of 138,600 metric tonnes and contributed over N19 billion to the company’s overall revenue in the 2021 financial year, its second year of operations. The company will continue to improve its product offerings in order to exceed consumers’ expectations, increase market share, and deliver value to shareholders.

Financial highlights

● Revenue grew by 36 percent to N109.5 billion.

● Operating profit increased by 39 percent to N7.6 billion.

● Recorded Gross Profit Margin of 14.3 percent.

● Profit after Tax (PAT) increased by 73 percent.

● Recorded earnings per share of 14.2 kobo.

● Proposed dividend of 7 kobo per share up 75percent.

About Honeywell Flour Mills Plc

Honeywell Flour Mills Plc is a leading foods company producing, marketing and selling high-quality food products in the fast-moving consumer goods (FMCG) space. The company’s range of products that have become staples in Nigerian homes includes Honeywell Superfine Flour, Honeywell Bakers Delight Flour, Honeywell Pastry Flour, Honeywell Semolina, Honeywell Whole Wheat Meal, Honeywell Macaroni, Honeywell Spaghetti and the popular variety of Honeywell Noodles.

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