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Honeywell records 18% rise in profit

By on August 13, 2014

Honeywell Flour Mills Plc says its profit after tax rose by 18 per cent to N3.5bn in the financial year ended March 31, 2014, from N2.8bn the previous year.

This, the company said, translated to an 18 per cent increase in earnings per share – from 35.86 kobo to 42.26 kobo.

Honeywell’s results for the period, which it filed with the Nigerian Stock Exchange, indicate that it recorded a 21 per cent growth in its turnover for the period.

According to the company, its turnover rose from N46bn in the preceding fiscal year to N55.08bn in the year under review.

A statement from the company quoted its Managing Director, Mr. Lanre Jaiyeola, as saying the results “reflect the company’s increased output capacity and aggressive push to meet rising demand across its product categories.”

Jaiyeola explained that despite the challenge of input cost pressures caused by increase in wheat prices, Honeywell Flour Mills was able to achieve a 32 per cent growth in gross profit.

According to him, the gross profit rose from N8bn in the year ended March 31, 2013 to N10.4bn in the period under review as a result of the efficient management of raw material sourcing and control of production cost.

Jaiyeola, who explained that the tough business environment in the economy had led to an increase in Honeywell’s operating expenses as it strengthened its operations, stressed that the company was keen to achieve sustained growth.

He said, “Growing the top line is our number one priority, even as large industry capacity remains a constant threat.

“We are committed to the development of higher margin products and from our results you can see that investments in brand equity are beginning to yield fruits as sales of our value- added products like semolina, wheat meal and noodles contributed more to our portfolio mix than in the past.

“This is a trend that we plan to sustain and even grow as we embark on a new phase in our corporate existence.”

The company said in the statement that the fiscal year had ended with the retirement of Mr. Folaranmi Odunayo as its Chief Executive Officer after 17 years of service.

According to the statement, Honeywell Flour Mills is currently at advanced stages in the development of a new pasta plant and an integrated animal feed mill in Sagamu, Ogun State.

Both projects are expected to be completed in 2016.

 

[Punch]