Honeywell Flour Mills reported a profit after tax of N1.13 billion in its 2020 audited full-year financial result, which ended 31st March 2021. The food-producing company grew its bottom line by 73.1% from N650.49 million recorded in 2019 to N1.13 billion in 2020.
The company recorded double-figured growth despite the effect of the covid-19 pandemic on the Nigerian economy. It also crossed the N100 billion revenue mark in the review year. Its revenue for the period stood at N109.59 billion in 2020.
- Its revenue grew by 36.2% from N80.45 billion recorded in 2019 to N109.59 billion in 2020.
- Honeywell Flour Mills’ gross profit, however, declined from 17% recorded in the previous year to 14% in 2020.
- Operating profit increased by 39.1% in 2020 to stand at N7.65 billion, while PAT surged by 73.1% to N1.13 billion.
- Net profit margin also appreciated in the period to 1% from 0.8% recorded in the previous year.
- Returns on Assets (ROA) stood at 0.76%, while returns on Equity (ROE) for the period was 1.94%.
It is worth noting that the reduction in the firm’s selling and distribution expenses during the period translated into a 39.1% increase in its operating profit from N5.5 billion in 2019 to N7.65 billion.
The company, however, spent a sum of N4.59 billion as employee cost, indicating a 12% increase compared to N4.1 billion recorded in the previous period, while also increasing its staff strength from 819 as of 2019 to 832 at the end of 2020.
A cursory look at the report, reveals that the entire revenue was generated from sales of goods within Nigeria, with none received outside the shores of the country. Notably, the company’s business operating segments are identified by three factories, with the Apapa factory generating the highest revenue of N85.02 billion in 2020.
The Sagamu plant followed with total revenue of N19.1 billion, accounting for 17.4% of the total revenue, while Ikeja generated N5.49 billion for the company.
What they are saying
While speaking on the results, Lanre Jaiyeola, the Managing Director of Honeywell Flour Mills, Plc., said: “In an extremely challenging year caused by unprecedented global disruptions and uncertainties, we achieved 36% revenue growth and record-breaking success through sheer grit and doggedness of our workforce. We worked collaboratively towards the execution of our goals; improved production and cost optimisation, guided by a clear strategy and common purpose.”
We remain committed to ensuring the supply of affordable nutritious food products to Nigerians, and we continue to assure our shareholders of long-term profitable returns from Honeywell Flour Mills Plc,” he added.
What you should know
- Honeywell Flour Mills Plc is a leading food company producing, marketing, and selling food products in the fast-moving consumer goods (FMCG) space in Nigeria.
- According to the company, the future of its business would be shaped by continued investment in innovative product development, advanced technology infrastructure, and operational efficiency.
- In only its second year of operation, the company’s new world-class factory at Sagamu in Ogun State with an annual Pasta Production capacity of 138,600 Metric Tonnes, contributed over N19 billion to the company’s overall revenue in 2020.