Honeywell Flour Mills Plc grew Profit After Tax (PAT) increased by 73 per cent, according to its audited results for the year ended March 31, 2021.
The company said its profits grew from N650 million in full year 2020 to N1.1 billion in the period under review.
The company also announced an all-time high revenue of N109.5 billion, an increase of 36 percent over N80.4 billion posted in the previous year.
It attributed this improvement to increased production output and more efficient operational capabilities at its factories in Apapa, Sagamu and Ikeja.
Due to the increase in production activities, challenges with forex and COVID-induced disruptions in global trade which affected the sourcing of raw and packaging materials, It said 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 FY 2020 to N7.6 billion in FY 2021.
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This was attributable to improved efficiencies and cost optimisation strategies which saw selling and distribution expenses decrease by 8% to N5.5 billion.
According to the company, general and administrative expenses only slightly increased by 4 percent from N2.4 billion in FY 2020 to N2.5 billion in FY 2021, despite double digit inflation during the period.
Commenting on the financial results, the Managing Director, Honeywell Flour Mills, Plc, Lanre Jaiyeola, said, “In an extremely challenging year caused by unprecedented global disruptions and uncertainties, we achieved 36% revenue growth and record-breaking success through sheer grit and doggedness of our workforce.
“We worked collaboratively towards the execution of our goals; improved production and cost optimisation, guided by a clear strategy and common purpose. We remain committed to ensuring the supply of affordable nutritious food products to Nigerians, and we continue to assure our shareholders of long-term profitable returns from Honeywell Flour Mills Plc.”
According to the company, the future of its business will be shaped by a continued investment in innovative product development, advanced technology infrastructure and operational efficiency.
The company promised to continue to improve its product offerings in order to exceed consumers’ expectations, increase market share, and deliver value to shareholders.