Mr Lanre Jaiyeola, MD, Honeywell Flour Mills.

Honeywell Flour Mills Plc. has released financial statements for the 9-month period ended 31st December 2019 with operating profit 19 per cent from N2.8billion to N3.4billion.

The unaudited results which was released to the Nigerian Stock Exchange on Thursday, showed that Honeywell grew 6 per cent from N55 billion to N58.2billion.

The growth in revenue was propelled by sales volume which was up 5 per cent, driven by sales of its various Flour and Pasta products and efficient management of input costs and operating expenses, which also led to a healthy gross margin of 17.6 per cent.

Speaking of the firm’s performance for this period, ‘Lanre Jaiyeola, Managing Director stated: “Despite the challenging operating environment occasioned by rising input costs, reducing spending power of consumers and product evacuation challenges due to the traffic logjam at Apapa, the company grew its 9 months revenue by 6 per cent to N58.2billion.”

He claimed line with the company’s objective to continuously improve operational efficiency, the execution of well–embedded operational efficiency initiatives led to 9-month operating profit accelerating at a faster rate than revenue, adding that the management would continue to improve its operational efficiency in order to maximize value to shareholders.

The growth in operational efficiency was however moderated by the increase in finance expense which was up by 60 per cent from N2.6billion in the corresponding period last financial year to N4.2billion.

The increase in finance expense was as a result of the cost of financing part of the Foods and Agro-allied complex which is now being charged into the Income Statement following the commencement of commercial operations. As a result, profit for the 9-month period reduced by 747 per cent from N143million to a loss of N925m.

“We are confident that our performance in the coming quarter and the new financial year thereafter will record significant improvement. We have implemented strategies to maximize shipment of products to our customers in spite of the Apapa traffic gridlock. We are also well positioned to substantially increase our capacity utilisation of the Pasta production through continuous flow of input materials to the Pasta factory in Sagamu. We are also working on the introduction of new products tailored towards the preference of our most valued consumers in terms of satisfying their nutritional needs, taste and spending power,” Honeywell CEO concluded.



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