Shareholders commend Honeywell’s expansion
Honeywell Flourmills’ effort to expand its operations has been commended by its shareholders. Currently, the company is building a new pasta factory which is expected to be completed by end of the year.
The shareholders made the commendation at the seventh Annual General Meeting of the company which held in Lagos yesterday.
Sir Sunny Nwosu, president of Independent Shareholders Association of Nigeria, speaking at the event, advised management of Honeywell to continue with its programme of sourcing for raw material locally.
Nwosu said the new factory when on stream would help the company grow its market share, increase revenue significantly and support the actualisation of the backward integration strategy.
Also speaking at the event, Mr, Boniface Okezie, National Co-ordinator, Progressive Shareholders Association of Nigeria, commended the management of the company for good performance despite the headwinds, especially in turnover.
The Chairman of Honeywell Flourmill, Oba Otudeko, stated that there numerous challenging factors that led to heightened uncertainty and rising cost pressures in the Nigerian economy.
“Consumer spending dropped throughout the operating period under review. Prices of most consumer goods rose sharply in response to higher input cost. In our case, we have 0nly taken modest price increases to ensure our brands remain affordable and to sustain food security”, Otudeko explained.
He stated that for the period under review, the company grossed 4% per cent growth in revenue while total assets increased by 12% from N67.94b in 2015 to N76.05b due to the company’s expansion programme.
The company, however, recorded a loss of N2.87b for the first time in its twenty years of operation as a result of adverse effects of foreign exchange fluctuation, which affected cost of inputs
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