Honeywell Flour Mills shareholders gained a total of N20.7 billion in the month of August. During the month, the shares of Honeywell Flourmills went up from N1.68 kobo to N4.28 kobo, to reflect a growth of 154.8%, indicating that investors who bought into the stock at the start of the month have gained more than double of their investments at the end of August.
The increase in the price of the company’s shares significantly grew the company’s market value from N13.24 billion at the beginning of the month, to N33.94 billion at the end of August 2021. The sharp growth in share price can be attributed to positive investor sentiments in the FMCG company and its corporate governance.
At the end of the month, the company’s share price had reached a new All-Time-High of N4.28 per share.
The share price of Honeywell Flour Mills during the period under review outperformed its local peers such as Flourmills and NNFM. Flourmills Plc share price declined by 3.33% while NNFM grew by 18.70% during the month of August.
From year-to-date, however, Honeywell share price has appreciated by 223.33% from N1.20 per share to N3.88 as at September 9, 2021.
Honeywell Flour Mills Plc recently introduced its new spaghetti mini pack for N100 retail price. According to the company, the launch of Honeywell Spaghetti Mini was based on extensive research and insight into the Nigerian consumer behaviour over the past decade.
The Managing Director of Honeywell, Lanre Jaiyeola, said that the new product is the first of its kind in the pasta category.
According to Comercio Partners in Nigeria Macroeconomic and Markets Report, “Honeywell plays a major role in the production and distribution of wheat-based products in Nigeria. The company was able to ramp up its factory capacity to accommodate for the fast-rising demand for pasta products. Specifically, it ramped up the pasta production capacity of its world-class factory in Sagamu to 138,600 metric tonnes in the 2021 financial year. The relevance of the company’s product mix in terms of the huge market demand, and the improvements in its production capacity, have helped buoy the company’s revenue”.
In July, the company released its first quarter results ending June 30 2021, which revealed that revenue grew 25% while post-tax profit appreciated by 233% from N45 million in Q1 2020 to N150 million in Q2 2021.
The company has declared payment of N0.07kb as full-year 2020 dividend to be paid on the 23rd of September 2021.