Hits revenue milestone of N109.5bn in FY’21
To pay shareholders 7kobo dividend per share
Transitioning to become Honeywell Foods
Honeywell Flour Mills, one of Nigeria’s leading agro-allied and consumer goods companies, has reported all-time high revenue of N109.5 billion in its full year 2021 operations, a 36 percent year on year increase from N80.4 billion in 2020, largely driven by increase in revenues from consumer foods products, which saw a 40 percent rise in its sales of pasta following the investment in its new pasta factory in Sagamu, Ogun State.
The 2021 result has turned out to be the company’s best performing year as it crossed the N100 billion mark for the first time ever, joining an exclusive league of Nigerian companies with over N100 billion in annual revenues.
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Lanre Jaiyeola, managing director, Honeywell Flour Mills, at the company’s recent annual general meeting in Lagos told shareholders that the increased production output, pioneering new ways of selling, developing relationships with new customers all over the country, across traditional and modern trades, and more efficient operational capabilities at its factories in Apapa, Sagamu and Ikeja, were key contributing factors to the revenue increase reported.
Also, the company’s operating profit grew quicker than revenue at 39 percent, from N5.4 billion in the 2020 full year operation to N7.6 billion in full year 2021.
“In the past financial year, we achieved record production and sales volumes driven by consumer food products. Our investment in a new pasta factory at Sagamu paid off greatly as we grew pasta sales by over 40 percent to meet the generated demand for our pasta products.
“Consequently, we have commenced a 10-year evolutionary journey that will see Honeywell Flour Mills transition to become Honeywell Foods. Our aim is to offer a portfolio of food products manufactured from a wide range of raw materials drawn from local sources that offer good nutrition and contribute to a healthier and balanced life for all Nigerians. Our aim also aligns with the federal government’s commitment to achieving the United Nations 2030 Agenda of Sustainable Development Goals, that seek to ensure access to safe, nutritious and sufficient food,” Jaiyeola revealed.
The company will continue to focus on its competitive advantage and improve product offering for the next financial year while the company, Jaiyeola assured.
The board recommended the payment of 7 kobo per share as dividend for the year, which was approved by shareholders.
He also said the learning from the developments in the past 12 months has encouraged the company to sharpen its long-term strategic focus and embark on a 10-year journey towards creating even more value.
Oba Otudeko, chairman of the company, while commenting on the company’s operational performance also looked to the future for a favourable market condition.
“While we expect market conditions to remain tough and the effects of COVID-19 may be with us for the foreseeable future, our company has shown the capacity to withstand shocks and emerge stronger. And with consumer behaviour evolving faster than ever, we are adapting to this new reality by executing with speed in order to deliver competitive returns and meet the needs of multiple stakeholders. We are committed to investing in the capabilities we need, the know-how and the talent to continue to create superior value,” said Otudeko.