Honeywell Flour Mills records N983m loss in Q1 2022

Adebayo Obajemu

Honeywell Flour Mills has recorded a loss amounting to N983 million for the first quarter of 2022, ended 31st March 2022, an unimpressive report compared to the corresponding quarter last year when the company reported a N1.1 billion profit

In its latest financial report, the company posted a loss despite an improvement in the revenue for the period by 24%.

Analysts said that the result is influenced by inflation which caused the cost of sales to rise significantly, thereby reflecting on the gross profit.

In the period under review, the cost of sales was up by 32% to reach N124 billion from N94 billion the previous year. The spike was due to a hike in raw and packaging materials consumed from N83 billion to N111 billion.

On this note, there was a slide in gross profit to N11.6 billion compared to the amount it recorded the previous year at N15.6 billion.

The company witnessed a rise in other operating income significantly triggered by the sale of by-product and net gain on sale of property reaching N338 million during the period from N140 million; while selling and distributing expenses was N4.5 billion from N5.5 billion and general and administrative expenses was N2.68 billion from N2.57 billion.

Operating profit stood at N4.6 billion from N7.6 billion, and finance cost was N5.5 billion from N6 billion, while the operating loss before tax was valued at N172 million from N1.6 million.

The company last traded at N3.5 as of Friday the 27th, 2022, and its market cap stood at N27 billion.