Honeywell Flour Mills Plc said it would commence production on the new factory in Sagamu next month, after it announced 34 percent growth in revenue to N71.5 billion, against N53.2 billion recorded in the corresponding period of 2017.
The company’s gross profit grew by 26 per cent from N12.7 billion in previous year to N16.1 billion, as well as improved profit after tax of N4.4 billion.
Speaking at the yearly general meeting in Lagos, at the weekend, Chairman of Honeywell Flour Mills, Dr. Oba Otudeko, said the company focused on its main priority during the period under review, which was consistent delivery of profitable top line growth through high capacity utilisation.
Otudeko assured shareholders that in the new financial year, the company will remain committed to its vision to build strong market, highly desired and recognisable consumer products that are well distributed across the country.
He however, called on the Federal Government to address the challenges associated with roads in and around Tin Can and Apapa ports, which is affecting businesses operating from that axis.
Furthermore, he urged government to allow active participation of the private sector in the development and operation of ports in strategic regions of the country.
“The existing ports in Lagos are overcrowded.
There is the need for government to address these challenges to improve trade. Private sector participants should be allowed to build ports to support government’s efforts”, Otudeko said.
The Managing Director, Lanre Jaiyeola, said the company successfully contended with macroeconomic challenges, including higher energy and transportation costs, through meticulous execution of its Continuous Improvement Strategy.
According to him, the company implemented strategic projects to limit production losses, conserve energy, and to reduce downtime from equipment failure.
He said that management also implemented a carefully planned input-cost management strategy to ensure profitability, even amidst the pressures of the tough operating environment.
“Throughout the period under review, Honeywell Flour Mills Plc was focused on its mission to provide nutrient-fortified food products to more than 1.3 billion consumers, in furtherance of its ambition to significantly contribute to food security in Nigeria.”
Jaiyeola also assured investors that the company remains very optimistic about the future of the business.
He said the company is looking forward to the new financial year with excitement given the enormous work that has been done to ensure commencement of production at the new factory site in Sagamu and roll out of new products.
The President, Progressive Shareholders Association, Boniface Okezie, commended the efforts of the Board and Management of Honeywell Flour Mills Plc for the impressive results.