Stakeholders urge Honeywell to reduce rising cost, pay higher dividends
….Firm targets 20% market share
Stakeholders of the Nigerian capital market have called on Honeywell Nigeria Plc to work towards writing off its debt overhang, reduce increasing finance cost, record increased earnings and pay higher dividend.
The call was made recently when the company presented its facts behind the figures to capital market stakeholders at the Nigerian Stock Exchange (NSE) Lagos, just as high finance cost continues to retard its growth trajectory.
A stock broker, Gideon Atemase, who towed the line of other stock brokers in asking for enhanced performance and freeing more of the company’s shares, said that high service charges on bank loans continue to rubbish earning opportunities by shareholders, approaching the market for fresh capital will enable Honeywell reposition for profitability,
“Look at your finance needs and come to the market for rights issue to reduce finance cost” the broker counselled the company.
Dr Emeka Okolo , also a stock broker, emphasized on the need for Honeywell to record increasing market share through making its products, Semolina, flour among others, more available to consumers and at right pricing, adding that some of the company’s products command very high prices which inhibit sales.
Earlier in his address, Managing Director, Honeywell Plc, Mr. Olarenwaju Jaiyeola, said that the company is making investments in building capacity and shaping its future and the Nigerian food industry.
He said that the company is maximizing production cost through systemic and process- driven initiatives targeted at fostering and delivering positive effects on growth and margins.
According to Honeywell’s CEO, the company is enhancing its operations in highly advantaged markets, north and South West, and other areas, as it currently targets 20 per cent market share, from its current 12 per cent.
He revealed that in a bid to enhance volume and profitability, Honeywell will soon launch programmes and products that would appeal to its customers at affordable prices, without compromising standard and product quality.
