By Nkiruka Nnorom
HONEYWELL Flour Mills Plc has announced N58.2 billion revenue for the nine month period ended December 31, 2019, representing six percent increase when compared to N55 billion revenue posted in the same period in 2018. This is even as the company said that it plans to sustain revenue growth through increased utilisation of the pasta production facility at Sagamu, Ogun State.
The result released to the Nigerian Stock Exchange, NSE, showed that operating profit also rose by 19 percent to N3.4 billion from N2.8 billion in 2018.
The growth in revenue, according to the company, was driven by corresponding growth in sales volume. The company further stated that efficient management of input costs and operating expenses also led to a healthy gross margin of 17.6 percent and the nine month operating profit increase of 19 percent.
Commenting, Lanre Jaiyeola, Managing Director, Honeywell Flour Mills, said: “Despite the challenging operating environment occasioned by rising input costs, reducing spending power of consumers and product evacuation challenges due to the traffic logjam at Apapa, we grew our nine months revenue by six percent to N58.2 billion from N55 billion recorded in the corresponding period of 2018. This was driven by sales of our various flour and pasta products.
“We are confident that our performance in the coming quarter and the new financial year will record significant improvement. We have implemented strategies to maximize shipment of products to our customers in spite of the Apapa traffic gridlock. We are also well positioned to substantially increase our capacity utilisation of the Pasta production through continuous flow of input materials to the Pasta factory in Sagamu. We are also working on the introduction of new products tailored towards the preference of our most valued consumers in terms of satisfying their nutritional needs, taste and spending power,” he added.