Honeywell Flour Mills has reported a 73% growth in its Profit after taxation. This and other financial information was contained in its audited financial statements for the year ended 31 March, 2021 released earlier today to The Nigerian Exchange.
The Pasta and Noodles manufacturer reported a revenue of NGN109.594 billion in the financial year in review, a 36% improvement in the NGN80.450 billion it reported in the preceding year.
All revenue of the company were made from domestic customers; ie. customers within Nigeria. Same was the case in the preceding year.
Honeywell Flour has three operating business segments identified by its factories located in Ikeja, Sagamu and Apapa.
- Ikeja Segment manufactures Noodles. This segment contributed N5.492 billion out of the the company’s N109.594 billion revenue. It also contributed N416.429 million out of its N7.646 billion operating profit.
- Sagamu Segment manufactures Pasta. This segment contributed N19.083 billion out of the the company’s N109.594 billion revenue. It also contributed N1.728 billion out of its N7.646 billion operating profit.
- Apapa Segment manufactures Flour, Semo, Wheat mean, Brown flour and Baer’s delight flour. This segment contributed N85.018 billion out of the the company’s N109.594 billion revenue. It also contributed N5.501 billion out of its N7.646 billion operating profit.
The cost of sales increased at similar rate as the revenue growth, increasing by 41.12% from N66.588 billion in 2020 to N93.973 billion in 2021. General and administrative expenses increased slightly; N2.444 billion in 2020 and N2.572 billion in 2021.
The company was able to achieve an 8.15% reduction in its selling and distribution expenses. This expense reduced from N6.035 billion in 2020 to N5.543 billion in 2021.
With a Profit after taxation of N1.125 billion, the Earnings Per Share (EPS) increased from 8.18 kobo to 14.20 kobo.
The Directors of the company have proposed a dividend of 7.00 kobo for the financial year (2020: 4.00 kobo).
A review of the company’s statement of financial position as at 31 March, 2021 shows that its Assets has increased from N142.261 billion to N147.394 billion.
The increase is attributed to the Inventories that has risen from N17.525 billion to N19.780 billion, as well as Cash and cash equivalents which grew from N12.312 billion to N20.255 billion.
The company’s fixed assets; Property, plant and equivalent due to depreciation and little investment when compared to the preceding year saw its value decrease from N105.326 billion to N101.321 billion.
The worrying part of Honeywell’s balance which was dragged into the recent FBNH – CBN saga is its borrowings, and a review of its balance sheet shows that this is not getting better.
While the company’s borrowings under non-current liabilities decreased from N26.770 billion to N22.544 billion, its borrowings under current liabilities increased from N31.523 billion to N37.940 billion.
Its trade and other payables also increased from N21.487 billion to N23.799 billion. On the Asset column, the trade and other receivables decreased from N5.008 billion to N3.245 billion.
A review of the company’s statement of cash flow shows that total cash at the end of the year stood at N20.255 billion, over 100% increase from the N9.355 billion cash it had in its books at the end of the preceding year.
About the company
Honeywell Flour Mills Plc was initially registered as Gateway Honeywell Flour Mills Limited on 21 June, 1983. A change in the company’s ownership structure led to a change of the name to Honeywell Flour Mills Limited in June, 1995.
The Company was converted to a Public Liability Company in 2008. Its shares were listed on the Nigerian Stock Exchange (NSE) in 2009.
As part of its vertical integration strategy, the Company acquired 100% ownership of Honeywell Superfine Foods Limited, manufacturer of pasta and noodles in 2008.
Honeywell Flour Mills Plc is a company domiciled in Nigeria. The Company is principally engaged in the manufacturing and marketing of wheat-based products including Flour, Semolina, Whole Wheat Meal, Noodles and Pasta.
Honeywell Flour Mills (NSE Ticker: HONYFLOUR) has 7,930,197,658 outstanding shares and a market capitalization of N9.674 billion.
At the end of trading on Friday, its share price appreciated by 3.39% to close at N1.22.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur