Honeywell Flour Mills Nigeria Plc has posted a strong financial performance for the first quarter of 2025, with a significant turnaround in profitability. The company reported a profit after tax of ₦1.32 billion, a 213.87% improvement from the ₦1.16 billion loss recorded in Q1 2024. This performance was driven by a substantial 127.50% increase in revenue, which rose to ₦80.51 billion from ₦35.39 billion in the previous year.
Thank you for reading this post, don't forget to subscribe!The cost of sales also increased sharply by 135.37% to ₦73.94 billion, reflecting the inflationary pressures and higher production costs. Despite this, Honeywell Flour Mills managed to achieve a gross profit of ₦6.58 billion, marking a 65.38% increase from the prior year. However, the gross margin declined to 8.2% from 11.2%, indicating tighter profit margins.
Other operating income more than tripled to ₦247 million, up by 204.94%, while operating expenses such as selling and distribution costs rose by 74.70% to ₦2.35 billion. Despite these cost pressures, the company’s profit from operating activities grew by 64.92% to ₦4.48 billion.
Finance costs dropped by 48.15% to ₦1.63 billion, contributing to an improvement in net finance costs, which decreased by 41.48% to ₦1.63 billion. The company also reported a foreign exchange loss of ₦1.14 billion, which was 24.45% higher than the loss in Q1 2024.
Honeywell Flour Mills’ basic earnings per share increased by 213.87% to 0.17 kobo, compared to a loss per share of 0.15 kobo in the same period last year. This reflects the company’s ability to convert revenue growth into improved profitability.
On the balance sheet, total assets grew by 10.96% to ₦165.29 billion as of June 30, 2024, from ₦148.97 billion at the end of March 2023. This growth was largely driven by a 53.08% increase in cash and cash equivalents, which rose to ₦7.76 billion, and a significant rise in prepayments and import deposits, up by 259.33% to ₦25.75 billion.
Total liabilities also increased by 11.89% to ₦141.11 billion, primarily due to a 34.67% increase in trade and other payables, which reached ₦96.35 billion. Shareholders’ equity grew by 5.78% to ₦24.18 billion, reflecting a stronger financial position for the company.
Honeywell Flour Mills’ shares are currently trading at ₦3.30, with a 52-week high of ₦6.43 and a low of ₦2.90. The company’s price-to-earnings ratio stands at 19.80x, with an earnings yield of 5.05% and a return on equity of 15.6%, indicating solid shareholder value creation.
Overall, Honeywell Flour Mills has shown resilience and strategic management in a challenging economic environment, positioning itself for continued growth and profitability in the upcoming quarters.
