Honeywell Flour Mills Plc. has released its audited financial results for the full year ended March 31, 2017 with its total revenue rising from N50.88 billion in 2016 to N53.23 billion in 2017, representing a 5 per cent increase year-on-year.
The company recorded a 191 per cent increase in gross profit from N4.36 billion to N12.71 billion in the financial year under review and also achieved a 291 per cent increase in profit before taxation to N5.47 billion in 2017 from a loss position in 2016.
Consequently, it declared a dividend of 6 kobo per ordinary share to its shareholders at its just concluded 8th Annual General Meeting (AGM) held last Friday in Lagos.
Speaking at the AGM, Chairman of the company, Oba Otudeko, said its current performance indicated a leap from the results of the financial year 2016.
Otudeko attributed the improved earnings and profits to the company’s relentless focus on lower cost sourcing for raw materials and foreign exchange and increased efficiency in manufacturing. “In FY2017, we reaped the benefits of a well-executed input cost management strategy,” he added.
Also speaking at the AGM, Managing Director of HFMP, Mr. Lanre Jaiyeola, noted that the company was making significant changes to its business to lay a better platform for the years ahead. “In FY2018 and on the heels of an improving economic environment, we expect to record further improvements in performance, reigniting our growth agenda and extracting increased efficiency and cost reduction through a recently launched company-wide transformation and continuous improvement programme,” Jaiyeola said.
Reacting to the results, a shareholder, Sir Sunny Nwosu, commended the company’s efforts at ensuring that it remains on the path of growth, urging it to continue to focus on lower cost sourcing for raw materials.
Nwosu charged the board and management to remain steadfast with their aggressive strategies to further grow market share and increase revenue significantly in alignment with its mandate.
The Chairman assured shareholders of the board and management’s dedication, diligence and commitment to the company’s mission, which is to produce consistently good quality flour and other wheat based products for the complete satisfaction of its highly valued customers and consumers.