Earnings Watch: HoneyWell Flour Mills Records N 941 Million Q2 Net Income

Honeywelll Flour Mills has released its Q2, 2012 results, reporting a net income of N 941 Million.

The company reported a marginal increase of 2.5% in Revenue which was N 18.7 Billion, up from N 18.2 Billion over the same period last year.

The company’s Profit before Tax declined substantially, falling by 23% to N 1.3 Billion from N 1.7 Billion over the same period last year.

Net Income came in slightly higher due to lower tax charges as gainst the same period last year. Net profit was N 941 Million up from N 924 Million over the same period last year, reflecting an increase of 1.8%.

The company is expanding somewhat aggressively as it recorded an increase of 24% in its fixed assets. Its cash and bank balances were up 33% to N 5.4 Billion from N 4 Billion over the same period last year.

The company also reported a decline in trade creditors, yet reported a sharp increase on its balance sheet as regards other credit balances which are up 67% to N 22 Billion from N 13 Billion about a year ago.

The company’s working capital also took a big hit and is down by 97% to N 81 Million from N 3 Billion over the same period last year.

We expect management to quickly resolve their financing issues as management has planned to raise N 28 Billion in a rights issue in the next month.