Honeywell Flour recorded 36% revenue growth in year 2021 results – Honeywell floor full Year 2021 Financial Highlights.
- Revenue grew by 36% to N109.5 billion
- Operating profit increased by 39% to N7.6 billion
- Recorded Gross Profit Margin of 14.3%
- Profit after Tax (PAT) increased by 73%
- Recorded earnings per share of 14.2 kobo
- Proposed dividend of 7 kobo per share up 75%
Honeywell Flour Mills Plc. (HFMP), a leading food company, released its audited results for the fiscal year ending March 31, 2021, on Friday (May 28, 2021).
The company achieved an all-time high revenue of N109.5 billion, up 36% from the previous year’s figure of N80.4 billion.
This was attributed to higher output and more efficient operational capabilities at its Apapa, Sagamu, and Ikeja facilities.
Cost of sales increased by 41% to N93.9 billion from N66.5 billion in the previous financial year, owing to increased manufacturing activity, issues with currencies, and COVID-induced disruptions in global commerce, which impacted the supply of raw and packaging materials.
However, the company’s Operating Profit increased by 39% from N5.4 billion in FY 2020 to N7.6 billion in FY 2021, outpacing revenue by 39%.
Despite double-digit inflation, this was due to better efficiencies and cost-cutting tactics, which saw selling and distribution expenditures fall by 8% to N5.5 billion, while general and administrative expenses grew only slightly by 4% from N2.4 billion in FY 2020 to N2.5 billion in FY 2021.
As a result, profit after tax (PAT) climbed by 73%, from N650 million in FY 2020 to N1.1 billion in the period under consideration.
“In an extremely challenging year caused by unprecedented global disruptions and uncertainties, we achieved 36 percent revenue growth and record-breaking success through sheer grit and doggedness of our workforce,” said LanreJaiyeola, Managing Director, Honeywell Flour Mills, Plc., speaking about the Full Year 2021 financial results. We worked together to achieve our objectives of increased production and cost reduction, guided by a clear strategy and single purpose. We remain committed to ensuring that Nigerians have access to affordable, healthy food, and we continue to ensure Honeywell Flour Mills Plc shareholders of long-term financial returns.”
According to the corporation, ongoing investment in new product development, superior technology infrastructure, and operational efficiency will shape the company’s future. This is demonstrated by the company’s efficient use of its world-class facility in Sagamu, Ogun State, which has an annual Pasta production capacity of 138,600 Metric Tonnes and contributed over N19 billion to the company’s overall income in its second year of operations in 2021. To meet consumers’ expectations, expand market share, and deliver value to shareholders, the company will continue to improve its product offerings.
Honeywell Flour Mills Plc is a leading food firm in the fast-moving consumer goods (FMCG) sector, creating, marketing, and selling high-quality food items. Honeywell Superfine Flour, Honeywell Bakers Delight Flour, Honeywell Pastry Flour, Honeywell Semolina, Honeywell Whole Wheat Meal, Honeywell Macaroni, Honeywell Spaghetti, and the popular variant of Honeywell Noodles are among the company’s products that have become staples in Nigerian homes.
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