Shares of Honeywell Flour Mills Plc gained 10% in yesterday’s trading session, as investors in the Nigerian Stock Exchange (NSE) make demands for the shares of the company. The development is in reaction to its improved financial performance and increasing growth.
According to data obtained from the Nigerian Stock Exchange (NSE), Honeywell shares cleared at N1.43 per share with 25,122,393 units worth N35,605,728.98 crossing hands, in 225 deals on the floor of the exchange on Monday.
It is important to note that the current price of the shares of the company is currently trading at its 52 week-high.
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According to data tracked from the open of trade on the Nigerian Stock Exchange, till the close of trading activities yesterday, the market capitalization of the leading miller company increased from N10.31 billion at market open to N11.34 billion at the close of trade.
The increase probably was caused by buying interests in the shares of the company as investors scamper for the shares of Honeywell in reaction to the impressive financial performance which the company reported in the third quarter of 2020/21.
It is important to note that at the close of trading activities on NSE today, shares of Honeywell Flour Mills Plc rallied 13 kobo to close at N1.43 per share from N1.3 recorded at close of trade on Friday, 29th 2021.
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What you should know
- Recall that Nairametrics reported that Honeywell Flour Mills Plc made a profit of N120 million in the third quarter ended, 31st December 2020.
- The recent financial statements of Honeywell highlights the improvement in the operating segment of the company, despite the widespread economic vulnerabilities in the Nigerian economy, compounded by the COVID-19 pandemic and the containment measures and restrictions put in place by the government which has impacted the Nigerian economy.
- Honeywell’s move back to profitability can be hinged on the increase in the company’s sales which drove revenue higher by 34.24%. It is essential to note that despite the increase in the costs of raw materials, the company was able to post a profit after tax of N120 million in Q3 2020/21.