Honeywell Flour Mills posts N4.4bn profit
Honeywell Flour Mills Plc has posted a profit after tax of N4.4b for the financial year ended March 31, 2018, compared to N4.3bn in 2017.
In a statement, Honeywell said the growth was primarily as a result of a 15 per cent increase in operating profit, which grew from n8.3bn to n9.5bn and was partially offset by interest expenses and taxation.
It said net finance costs increased from n3.7bn to n4.6bn during the reporting period, while revenue increased by 34 per cent to n71.5bn from n53.2bn recorded in the comparable prior year period.
The firm said given the increase in production activities and higher energy costs due to major disruptions in gas supplies, cost of sales grew by 37 per cent to n55.4bn.
According to the statement, gross profit grew by 26 per cent in FY2018 from n12.7bn in the prior year to N16.1bn while gross margin as a percentage of net sales was 22 per cent for the period.
The Managing Director, Honeywell Flour Mills, Mr. Lanre Jaiyeola, who commented on the results said, “We started the year with a very strong momentum across our company and executed an aggressive market share recovery drive resulting in the 34 per cent top line growth being reported today.
“We saw very strong demand for our portfolio of brands even though the consumers’ purchasing power is yet to return to pre-recession levels. we remain steadfast in our commitment to ensure affordability and availability of nutritious food in nigeria and we assure our shareholders of sustainable profitable returns in the future.”
The firm said its selling and distribution costs grew in line with increased volumes in 2018 and reflected the increased costs associated with transporting finished goods out of its plant at the Tin Can-island Port, Apapa Lagos.
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