Full Year 2021 Financial Highlights

• Revenue grew by 36% to N109.5 billion
• Operating Profit increased by 39% to N7.6 billion
• Recorded Gross Profit Margin of 14.3%
• Profit after Tax (PAT) increased by 73%
• Recorded Earnings per share of 14.2 kobo
• Proposed dividend of 7 kobo per share up 75%

Leading foods manufacturer, Honeywell Flour Mills Plc. (HFMP) today announced its audited results for the year ended March 31, 2021. The company recorded an all-time high revenue of N109.5 billion, an increase of 36% over N80.4 billion posted in the previous year. This was due to increased production output and more efficient operational capabilities at its factories in Apapa, Sagamu and Ikeja.

Given the increase in production activities, challenges with forex and COVID-induced disruptions in global trade which affected the sourcing of raw and packaging materials, cost of sales grew by 41% to N93.9 billion from N66.5 billion in the previous financial year. However, the company’s Operating Profit grew faster than revenue at 39%, from N5.4 billion in FY 2020 to N7.6 billion in FY 2021. This was attributable to improved efficiencies and cost optimisation strategies which saw selling and distribution expenses decrease by 8% to N5.5 billion, while general and administrative expenses only slightly increased by 4% from N2.4 billion in FY 2020 to N2.5 billion in FY 2021, despite double digit inflation during the period.

Consequently, Profit After Tax (PAT) increased by 73%, growing from N650 million in FY 2020 to N1.1 billion in the period under review.

Speaking on the Full Year 2021 financial results, Lanre Jaiyeola, Managing Director,  Honeywell Flour Mills, Plc., 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. We worked collaboratively towards the execution of our goals; improved production and cost optimisation, guided by a clear strategy and common purpose. We remain committed to ensuring the supply of affordable nutritious food products to Nigerians, and we continue to assure our shareholders of long-term profitable returns from Honeywell Flour Mills Plc.”

According to the company, the future of its business would be shaped by a continued investment in innovative product development, advanced technology infrastructure and operational efficiency. This is evidenced by the efficient utilisation of its world-class factory in Sagamu, Ogun State which boasts an annual Pasta production capacity of 138,600 Metric Tonnes and contributed over N19 billion to the company’s overall revenue in the 2021 financial year, its second year of operations. The company will continue to improve its product offerings in order to exceed consumers’ expectations, increase market share, and deliver value to shareholders.