Honeywell Flour Mills Plc reported a pre-tax profit of N7.7 billion for the nine months ended December 2025.
Although the company remained profitable, this result represents a decline compared to the N12.2 billion pre-tax profit recorded in the same period of 2024.
Of the total figure, the third quarter contributed N5.1 billion in pre-tax profit, down from N8.8 billion recorded in the third quarter ended December 2024.
The decline was mainly due to lower revenue, as nine-month sales decreased from N277 billion to N242 billion in FY2025, alongside higher operating and finance costs.
Key highlights (9M 2025 vs 9M 2024)
- Revenue: N242 billion vs N277 billion in the prior year
- Cost of sales: N220.5 billion vs N248.5 billion
- Gross profit: N21.4 billion vs N28.4 billion
- Selling and distribution expenses: N14.05 billion, up 57.55% year-on-year
- Operating profit: N8.8 billion vs N22 billion
- Finance costs: N4.7 billion, up 19.67% year-on-year
- Pre-tax profit: N7.7 billion vs N12.2 billion
- Total assets: N152.2 billion vs N167.5 billion
- Retained earnings: N13.8 billion vs N7.6 billion
What the data is saying
According to the financial statements, the company recorded nine-month revenue of N242 billion, representing a 12.65% year-on-year decline.
After accounting for the cost of sales of N220.5 billion, gross profit stood at N21.4 billion.
- Although the cost of sales declined from N248.5 billion in the previous year, it remained high enough to narrow gross profit by 24.80%.
Operating costs increased during the period, mainly due to higher selling and distribution expenses, which rose to N14.05 billion from N8.9 billion.
- As a result, despite a net operating gain of N1.4 billion, operating profit fell sharply to N8.8 billion from N22 billion in the period ended December 2024.
Finance costs amounted to N4.7 billion, while finance income stood at N4.5 billion.
- In addition, foreign exchange losses of N871 million (down from N8.5 billion) were recorded, resulting in a net finance expense of N1.08 billion.
After these items were accounted for, pre-tax profit decreased to N7.7 billion from N12.2 billion. Following a tax charge of N1.5 billion, profit after tax settled at N6.2 billion.
Balance sheet
For the nine months ended December 2025, the company reported total assets of N152.2 billion, down from N167.4 billion in March 2025.
- Property, plant, and equipment accounted for the largest share of total assets at N72.9 billion, followed by inventories valued at N43.9 billion.
On the equity side, shareholders’ equity increased to N43.6 billion, representing a 16.57% year-on-year growth.
- Reserves formed the largest portion at N19.3 billion, while retained earnings stood at N13.8 billion and share capital at N10.4 billion.
Positively, the company reduced its overall obligations, as total liabilities declined to N108.6 billion from N130 billion a year earlier.
This reduction was largely driven by lower trade and other payables, which fell from N87.7 billion to N74.3 billion, as well as declines in both non-current and current borrowings
What to know
Honeywell Flour Mills remained profitable from April to December 2025, but earnings declined compared to the previous year due to lower revenue and higher expenses.
- Operating profit fell sharply, showing that higher expenses had a stronger impact than the company’s cost-saving efforts.
- On the positive side, the balance sheet improved, with shareholders’ equity increasing and total liabilities declining.
- Reduced borrowings and lower payables helped strengthen the company’s balance sheet, despite weaker earnings.
On a year-to-date basis, the company’s share price is up 1.14%, currently trading at N22.15.
