Honeywell Flour Mills Plc, has recorded a revenue of N109.5 billion in its financial year ended, March 31, 2021.
The company in its audited results released on the Nigerian Exchange Limited showed a revenue growth of 36 per cent from N80.4 billion in 2020 to N109.5 billion in the year under review.
The company said, “This was due to increased production output and more efficient operational capabilities at its factories in Apapa, Sagamu and Ikeja.”
Given the increase in production activities, challenges with forex and COVID-induced disruptions in global trade which affected the sourcing of raw and packaging materials, cost of sales grew by 41 per cent to N93.9 billion from N66.5 billion in the previous financial year. However, the company’s operating profit grew faster than revenue at 39 per cent, from N5.4 billion in full year, 2020 to N7.6 billion in 2021.
This was attributable to improved efficiencies and cost optimisation strategies which saw selling and distribution expenses decrease by eight per cent to N5.5 billion, while general and administrative expenses only slightly increased by four per cent from N2.4 billion in 2020 to N2.5 billion in 2021, despite double digit inflation during the period.
Consequently, profit after tax increased by 73 per cent, growing from N650 million in FY 2020 to N1.1 billion in the period under review.
Speaking on the full year 2021 financial results, managing director, Honeywell Flour Mills, Lanre Jaiyeola, said, “In an extremely challenging year caused by unprecedented global disruptions and uncertainties, we achieved 36 per cent revenue growth and record-breaking success through sheer grit and doggedness of our workforce.