Honeywell posts 5 percent turnover growth
Flour Producer Declares 6 Kobo Dividend Payment
By Nsikan Ikpe
Honeywell Flour Mills Plc, an assured market leader in the Nigerian food industry, having recorded significant return to profitability has declared a dividend pay out of 6 kobo per ordinary share for the year ended March 2017.
The company declared this at its just concluded annual General meeting which held on 22nd September 2017.
During the year under review, the company recorded a remarkable 5 percent increase in turnover resulting in revenue from products sales of N53.27 billion. This was achieved against the backdrop of the daunting difficulties experienced in the operating environment in FY2017.
Speaking during the Annual General Meeting (AGM), Chairman of the company, Dr. Oba Otudeko, said, “One of our strategic objectives is to become an advantage low cost producer. In this regard, we continued to implement innovative and sustainable cost reduction strategies that were initiated in the previous year. Our manufacturing function drove further efficiencies through continues improvement projects that enhanced engineering and plant maintenance processes and ensured higher levels of production efficiency’’.
According to him the board and management team of the company have resolved that the growth agenda will be driven through an expansion of the flour customer base and increasing investment in Route-to-Market and retail redistribution capability. He highlighted that this year the company will be executing a companywide efficiency enhancement and cost reduction programme to deliver annual savings and commensurate to several percentage points’ improvement in net margins while supply chain strategy is being reviewed to drive an organization that is more responsive to consumer and customer requirement in the face of constantly changing dynamics in the global and domestic markets.
Speaking further, Otudeko stated that the company is making bold investments in its capability enhancing programmes to shape the future of the company and the foods industry in Nigeria. He hinted that in the course of the year, there will be critical hiring in various functions and roles to introduce new skills and know-how .
He highlighted that, the key macro-economic indicators point towards Nigeria returning to the growth path this year. The real GDP growth is now trending in a positive direction while the foreign exchange crisis is also easing on the backdrop of volume and relative price stability.
The Chairman, assured shareholders of the management’s dedication diligence and commitment to provide nutritious and affordable food to all consumers while generating sustainable growth and profitability.
Honeywell Flour Mills Plc (HFMP) is a major flour milling company in Nigeria and was initially registered as Gateway Honeywell Flour Mills Limited in 1985. However, in June 1995, a change in the company’s ownership structure led to a change of name to Honeywell Flour Mills Limited (HFML). The entry of the company into the flour milling industry in Nigeria redefined industry standards as its high quality compelled an improvement in the quality of flour products by other players. Over the years HFMP has positioned itself as a market leader in milling, processing & packaging of flour and other wheat based products.
Dr Oba Otudeko, Chairman, Honeywell