Pasta sales boost Honeywell Flour Mills profit in Q1

Honeywell Flour Mills Plc has announced the financial statements for the first quarter ended June 30, 2019 with revenue gaining by seven percent to N19 billion on the back of robust sales of Pasta products, which led to the continued strong performance of our B2C business line.

In the result available at the Nigerian Stock Exchange (NSE), revenue generated in the corresponding period of 2018 stood at N17.7 billion, while profit after tax grew by six percent to N108 million in 2019 as against N102 million in the comparable period of last year. Gross profit margin also increased by seven percent from N3.193 billion to N3.411 billion while the operating profit increased by 52 percent from N1.02 billion to N1.54 billion.

Speaking on the company’s performance, the Managing Director, Lanre Jaiyeola, noted that, “Despite the tough operating environment, revenue for the quarter was up by seven percent to N19 billion, when compared to revenue of N17.7 billion recorded in the corresponding quarter of the last financial year. This was driven by sales of our various Pasta products, which led to the continued strong performance of our B2C business line.”

He stated that with the commencement of full commercial production at the ultra-modern foods and agro-allied complex in Sagamu, Ogun State, the Company was able to grow its capacity to meet the increasing demand for its Pasta products which is evidenced by the impressive 157 percent volume increase.

He noted further that the performance in pasta gives credence to the company’s commitment to continue to expand its footprint into growth areas that will positively impact the long-term sustainability of the business.

Jaiyeola explained that, “Execution of well-embedded savings and efficiency initiatives aimed at improving the company’s margins led to a 14 per cent drop in selling and administration expenses from N2.2 billion to N1.9 billion. This translated to the operating profit accelerating at a faster rate than revenue by 52 per cent, from N1.02 billion to N1.54 billion.”

Confident of sustaining an improved performance through the remaining period of the financial year and the future, the Managing Director said that, “We are confident about the future and our performance for the full year. We will continue to execute on our five core strategic pillars through three key drivers of growth, efficiency and capability.

“We will also strengthen and expand our business portfolio, generate additional revenue streams by offering new products tailored to consumers’ taste and nutritional needs and we will drive margin improvement by enhancing operational efficiency and developing capabilities to extend product offerings and serve new markets.”