Honeywell Flour Mills Plc. (HFMP) today announced its audited results for the year ended March 31, 2017. During the reporting period, the Company posted revenues of N53.2 billion, up by about 5% from N50.9 billion recorded a year ago. This increase in turnover was achieved despite the general squeeze on consumer spend due to macroeconomic headwinds experienced nationwide in 2016. A statement from the Company’s Management indicated that they implemented forward looking strategies aimed at input cost management and efficiencies in the overall supply chain management process. As a result of this, cost of sales declined by 13% to N40.5 billion compared to N46.5 billion recorded in the previous year. A combination of increased turnover and reduced cost of sales resulted in a 191% increase in gross profit to N12.7 billion, for the period.

Emerging from a difficult period in FY2016, HFMP’s operating profit grew to N8.3 billion following Management’s execution of tactical initiatives in the company’s supply chain, sales and marketing functions to improve cost-to-serve metrics across modern trade and informal market channels in all business segments of the Company. This resulted in the 23% reduction recorded in Selling and Distribution costs in FY2017.

There was a significant increase in net finance costs borne by HFMP in the period amounting to about N2.0 billion when compared to the previous period. This was reflective of the increased cost of doing business in an environment characterised by uncertainty and more conservative banking industry.

Overall, the company recorded a profit before tax of about N5.5 billion, a swift recovery from the loss of N2.8 billion recorded in FY2016.

Commenting on the results, the Managing Director, Mr. ‘Lanre Jaiyeola, said: “These results were achieved as a result of our determination to exceed the expectations of all stakeholders. Despite a challenging environment, we focused on delivering superior quality products to our wide-ranging customers in the retail and wholesale segments whilst leveraging our route to market capabilities which we continue to invest in. In addition, we took a very conservative approach to costing and also leveraged government policies targeted at helping the manufacturing sector during the forex crisis. Our Management Team is making significant changes to our business in order to lay a better platform for the years ahead. Therefore, 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 companywide transformation and continuous improvement program.”