Honeywell Drops 52 Percent Profit

A statement releassd by Honeywell Flour Mills has confirmed that the mill witnessed a 52.2 per cent drop in its profit after tax for the company’s unaudited condensed income statement for the period of nine months which ended December 31, 2014.

The company also reported a 54.6 per cent drop in profit before tax. Its PBT for the nine-month period under review fell from the N2.699bn it posted in the corresponding period of 2013 to N1.226bn.

The company’s condensed income statement, which it filed with the Nigerian Stock Exchange, showed that its profit was affected by N903m loss recorded as a result of the naira devaluation and an increase in sales cost and administrative expenses.

Specifically, selling and administrative losses rose from N4.326bn in the nine months to December 31, 2013 to N4.803bn in the period under consideration.

Its revenue also declined by 8.27 per cent year-on-year; from N41.023bn to N37.636bn, while its gross profit was down by 10.4 per cent from N7.761bn to N6.950bn.

In the nine months under review, the basic earnings per share fell by 52.2 per cent from N25.56 to N12.21.

In its unaudited results for the first quarter ended June 30, 2014, before the slump in oil prices and devaluation of the naira, the company had reported a 516 per cent jump in profit after tax – to N462m from N75m in the corresponding period of 2013