Honeywell records highest profit in history

Otudeko attributes growth to robust strategies

Honeywell Flour Mills has achieved a new height, with a profit after tax (PAT) of N4.3 billion recorded for the 2017 financial year.

The company rose from a N3bn loss recorded in the 2016 financial year; and improved by 242 per cent.

The Chairman and founder of the Company, Dr Oba Otudeko, attributed the growth, to the company’s relentless focus on lower cost sourcing for raw materials and foreign exchange as well as increased efficiency in manufacturing.

Dr Otudeko, speaking during the Annual General Meeting (AGM), held Friday, in Lagos, said Honeywell, recorded the highest profit in the history of the company in the year 2017, as a result of the company’s strategic and effective retail distribution system.

These strategies, he said, resulted in a remarkable 191 per cent increase in gross profits from N4.31bn to N12.71bn in the financial year under review, and a growth in total revenue from N50.88bn in 2016 to N53.23bn in 2017, representing a 5 percent increase year-on-year.

The company achieved a 291 per cent increase in profit before taxation, to N5.47 billion in 2017 from a loss position in 2016. Consequently, the Company declared a dividend of 6 Kobo per ordinary share to its shareholders at its just concluded 8th Annual General Meeting, held on Friday, 22nd September, 2017.

Speaking further, the Chairman said: “Our results show continued growth and a substantial step-up in profitability despite the volatile economic environment. It was achieved largely through improved efficiency

Also speaking at the AGM, Managing Director of HFMP, Mr. Lanre Jaiyeola, noted that the company was making significant changes to its business in order to lay a better platform for the years ahead.

However, a shareholder, Sir Sunny Nwosu, commended the company’s efforts at ensuring that it remains on the path of growth, urging them to continue to focus on lower cost sourcing for raw materials.

Afolabi Adesola