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Honeywell offers N1.3b dividend, plans food complex

By on July 25, 2013

Honeywell Flour Mills, on Tuesday presented its audited full result for the year ended March 31, 2013, following which its board recommended a dividend of 16 kobo per unit.

The proposed dividend, amounting to N1.3 billion is to be distributed to those who are shareholders as at September 6, 2013, just as the company plans to retain N1.5 billion for future business expansion.

Payment slated for September 25, 2013, after the requisite approval by shareholders when they meet the day after.

The company’s result released to the Nigerian Stock Exchange (NSE) earlier showed that the company earned N46 billion revenue, a 20 per cent increase over previous year’s N38 billion.

A statement by the company on Tuesday said the increased revenue was boosted by the coming on stream of additional milling capacity occasioned by the recent completion of the firm’s ‘E and F Mills’ with a combined flour production capacity of 1,000MT per day.

This, the statement said “bringing the overall capacity to 2,610MT per day. The Company completed this expansion project only towards the end of the financial year and consequently the full impact of this project will be felt in the 2014 performance.”

Profit after tax (PAT) grew 6 per cent from N2.6 billion in 2012 to N2.8 billion in 2013, resulting in Earnings Per Share (EPS) increased to 36 kobo from the 34 kobo recorded in the previous period.

During the year, Honeywell Flour carried out an internal restructuring which resulted in the merger by absorption of Honeywell Superfine Foods Ltd, formerly a wholly owned subsidiary and manufacturers of pasta and noodles. This integration was completed after all court and regulatory approvals, and had as its key objective, the further extraction of value from the already exiting forward/vertical integration between the two businesses.

The Executive Vice Chairman, Babatunde Odunayo, promised that of the company will continue to produce bread flour and other wheat-based food products at its existing factory located at Tin Can Island, Apapa, Lagos because of its proximity to the Port.


[Daily Independent]