Honeywell Flour Mills Plc has released its results for the financial year ended 31st March 2025, recording a pre-tax profit of N21.39 billion.
This marks a strong recovery from the N8.5 billion loss reported during the same period in 2024, driven by a significant reduction in exchange losses and a surge in revenue.
Total revenue stood at N373.5 billion, up 98.35% from N188.3 billion recorded in the same period last year.
- Sales of flour products made up the bulk of this figure, contributing N278.9 billion or 74.7% of total revenue.
- Pasta sales followed at N89.3 billion, while haulage services added N5.2 billion.
However, the cost of sales rose significantly to N341.2 billion, a jump of 118.80%, which offset most of the revenue growth.
- As a result, gross profit stood at N32.2 billion, down slightly by 0.30% compared to the previous year.
On the positive side, other income increased to N4.9 billion from N2.2 billion the year before. This was mainly due to sundry income of N3.5 billion and government grant income of N1.1 billion.
The company reported administrative expenses of N12 billion, a sharp rise of 244.3%, while selling and distribution expenses increased by 79.8% to N4.5 billion.
- These rising costs led to a decline in operating profit, which fell to N18.2 billion from N28.4 billion in the previous year.
Nevertheless, the company’s profitability was supported by finance income of N8.5 billion—mainly from a realized exchange gain of N5.8 billion—and a reduction in finance costs from N36.2 billion to N5.4 billion.
- Of the total finance costs that were offset, exchange losses made up the majority, amounting to N787.8 million, down from N24.9 billion in the prior year.
On the balance sheet, retained earnings rose to N7.8 billion for the quarter, up from a N6.9 billion loss a year earlier.
- Meanwhile, total assets increased by 12.73%, reaching N167.9 billion.
Key highlights:
- Revenue: N373.5 billion, +98.35% YoY
- Cost of Sales: N341.2 billion, +118.80% YoY
- Gross Profit: N32.2 billion, -0.30% YoY
- Administrative Expenses: N12 billion, +244.34% YoY
- Operating Profit: N18.2 billion, -35.64% YoY
- Finance costs: N5.4 billion, -85.03% YoY
- Pre-Tax Profit: N21.3 billion, +348.80% YoY
- Total Assets: N167.9 billion, +12.73% YoY
As of market close on 30th May 2025, shares of Honeywell Flour Mills were priced at N21.00, reflecting a year-to-date performance of 233.33%.
