December 2, 2021

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Honeywell exceeds N100bn annual revenue mark

Honeywell Flour Mills Plc (HFMP) has recorded all-time high N109.5 billion revenue for the year ended March 31, 2021.

This is an increase of 36 per cent over the N80.4bn posted in the previous year, a statement said.

The company said the rise was due to increased production output and more efficient operational capabilities at its factories in Apapa (Lagos), Sagamu (Ogun) and Ikeja (Lagos).

Its cost of sales grew by 41% to N93.9bn from N66.5bn in the previous financial year which, it said, was due to rising inflation and foreign exchange, among other indices.

Its operating profit grew faster than revenue at 39%, from N5.4bn last year to N7.6bn in 2021, attributable to improved efficiencies and cost optimisation strategies.

The firm’s selling and distribution cost dropped by 8% to N5.5 billion, while general and administrative expenses rose by 4% from N2.4bn to N2.5bn.

The company also recorded a higher Profit After Tax (PAT) rising 73% from N650 million in 2020 to N1.1bn this year.

Commenting, the Managing Director Lanre Jaiyeola, said: “In an extremely challenging year caused by unprecedented global disruptions and uncertainties, we achieved 36% revenue growth and record-breaking success through sheer grit and doggedness of our workforce.”

On its expectations, the company committed to more investments and efficient use of its factory in Sagamu, Ogun State which has 138,600 Metric Tons (MT) pasta production capacity and contributed over N19bn to the company’s revenue this year.

“The company will continue to improve its product offerings to exceed consumers’ expectations, increase market share and deliver value to shareholders,” it stated.