Honeywell Flour Mills Plc (NGX: HONYFLOUR), a major player in Nigeria’s flour milling industry, released its audited financial statements for the fiscal year ended March 31, 2025.
The company delivered a strong financial performance in FY 2025, recovering from previous losses due to reduced financial cost, from N36.3 billion to N5.4 billion in the year in review.
In 2025, HONYFLOUR recorded a remarkable revenue of ₦373.5 billion, more than double the ₦188.3 billion reported in 2024.
Despite the revenue growth the company achieved a gross profit of ₦32.2 billion, almost unchanged from the ₦32.3 billion reported in 2024 due to increased cost of sales which rose to ₦341.3 billion.
Although the company faced rising operational costs like the administrative expenses which increased to ₦12.1 billion from ₦3.5 billion in 2024, it reported a profit before tax of ₦21.2 billion due to over N30 billion reduction in finance cost.
Net profit for the year was ₦14.6 billion, showing a 246% increase from the prior year’s net loss of ₦10.1 billion.
Earnings per share improved from –127.61 kobo in 2024 to 183.96 kobo in 2025.
Financial Position
HONYFLOUR’s total assets rose to ₦167.4 billion in 2025 from ₦149 billion in 2024, reflecting an expanding asset base to support growth.
Major components of the assets include:
- Property, plant, and equipment: ₦70.8 billion
- Inventories: ₦48.1 billion
- Trade and other receivables: ₦27.6 billion
- Prepayments: ₦11.8 billion
- Cash and cash equivalents: ₦5.3 billion
Tootal liabilities also increased slightly by 3%, standing at ₦130 billion, mainly due to increases in trade payables and short-term borrowings.
Key components of the liabilities are:
- Borrowings (short and long-term): ₦26.9 billion
- Trade and other payables: ₦79 billion
- Contract liabilities: ₦8.8 billion
- Deferred tax liabilities: ₦7.6 billion
Equity rose from ₦22.9 billion in 2024 to ₦37.4 billion in 2025, driven primarily by retained earnings from the year’s profit.
Cash Flow
Cash flows from operating activities surged to ₦296.4 billion, a vast improvement over ₦70.7 billion in 2024. This improvement was mainly due to strong earnings and better working capital management. Despite significant loan disbursements and investments in property and subsidiaries, HONYFLOUR maintained positive net cash at year-end.
During the year, HONYFLOUR incorporated several Free Trade Zone Enterprises to enhance its operational flexibility and tax efficiency. It also continued investments in high-tech milling equipment through strategic partnerships with Buhler AG and Muhlenchemie.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
