Honeywell Flour Mills grows Q1 earnings, profit
Honeywell Flour Mills Plc has announced its financial figures for the first quarter (Q1) ended June 30, 2019. Summary of the financial results show revenue of N19 billion, up 7percent compared with N17.7 billion recorded in the corresponding quarter of 2018; gross profit margin, up by 7percent from N3.193billion to N3.411billion. Operating profit went up by 52percent from N1.02 billion to N1.54 billion; while profit for the period was up by 6percent from N102million to N108million.
Speaking on the results, ‘Lanre Jaiyeola, Managing Director, Honeywell Flour Mills Plc said, “Despite the tough operating environment, revenue for the quarter was up by 7percent to N19 billion, when compared to revenue of N17.7 billion recorded in the corresponding quarter of the last financial year.”
He said, “This was driven by sales of our various Pasta products, which led to the continued strong performance of our B2C business line. With the commencement of full commercial production at our ultra-modern Foods and Agro-allied complex in Sagamu, Ogun State, we were able to grow our capacity to meet the increasing demand for our Pasta products which is evidenced by the impressive 157percent volume increase. 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.”
The Managing Director further explained details of the result saying that the “Execution of well-embedded savings and efficiency initiatives aimed at improving the company’s margins led to a 14percent 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 52percent, from N1.02 billion to N1.54 billion.