News Column

Honeywell Flour Mills Grows Profit to N3.5 Billion

August 12, 2014

Goddy Egene

Honeywell Flour Mills Plc (HFMP) has reported a profit after tax (PAT) of N3.5 billion for the year ended March 31, 2014, showing an increase of 18 per cent from the N2.8 billion recorded in 2013.

According to the results presented to the Nigerian Stock Exchange (NSE) by the company, HFMP recorded a 21 per cent growth in its turnover to N55.1 billion from N46 billion in 2013.

Speaking on the result, the Managing Director of the company, Mr. Lanre Jaiyeola, said it reflects the company's increased output capacity and aggressive push to meet rising demand across its product categories.

"Despite the challenge of input cost pressures caused by increases in wheat prices, HFMP was still able to achieve a 32 per cent increase in gross profit from the N8 billion recorded last year to N10.4 billion in the period under review, due to deft management of raw material sourcing and efficient control of production cost," he said.

He explained that the sheer challenge of operating in the Nigerian business environment was evident in the rising profile of HFMP's operating expenses as it incurred costs to deepen its trade, marketing and sales activities to further develop hitherto under-served sectors of the Nigerian market.

"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," Jaiyeola added.

HFMP 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, which are to be completed in year 2016, according to the company, will create thousands of jobs and support several agriculture value chains in Nigeria, focusing on local raw material inputs. Operating from two locations, Apapa and Ikeja, in Lagos, HFMP is one of the largest foods focused companies in Nigeria and is a member company of the Honeywell Group.

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Source: AllAfrica

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