30th September 2020. Lagos, Nigeria Honeywell Flour Mills Plc (HFMP), has said it will continue to focus on building a sustainable and growing business at the heart of the Nigerian food industry by maintaining a strong position in current product categories and implementing a developmental agenda in the indigenous carbohydrates segment. The company also assured stakeholders it will continue to invest in growth opportunities and platforms, particularly those that will improve Nigeria’s agricultural productivity. 

These ambitions are contained in the recently released 2020 annual report and accounts of the company, which were presented at the company’s 11th Annual General Meeting (AGM) held on Wednesday, 30th September 2020, in Lagos.

In his message to shareholders, Chairman of the Board of Directors, Dr Oba Otudeko CFR, said the company will continue to pursue long-term shareholder value maximisation through balanced top-line and bottom-line growth by focusing on categories and regions where the company has the ability to win and grow market share. "We will actively manage our product portfolio and prioritise our investments to stay relevant, address the latest consumer trends, and win in every category and market we operate in," Otudeko said.

Speaking on some of the measures the company has employed to increase the size of local content in its operations, Otudeko continued: “We have expanded our scope beyond substituting edible raw materials with locally available inputs, to sourcing and working with local suppliers to produce critical manufacturing inputs and spares that were previously imported. We are convinced that this will contribute in no small measure to saving foreign exchange expense while developing the capacity of local suppliers.”

The Managing Director of the company, Lanre Jaiyeola also assured shareholders that HFMP remains committed to transforming the carbohydrates food industry by providing affordable foods to a fast-growing population, saying, “Our outstanding range of food products, including our pastas, noodles, and ball foods, continue to define the Nigerian dining table. Looking to the future, we will focus on creating category-defining food products that appeal to the domestic palate, using local sources of carbohydrates to deliver innovative packaged-food formats.”

For the financial year ending March 2020, revenue increased by 8 per cent to N80.5 billion, total assets increased by 3 per cent to N142.3 billion, while the company recorded a gross profit margin of 17 per cent. Operating profit increased by 49 per cent to N5.5 billion, reflecting effective cost control that takes advantage of revenue growth. In line with the improved financial performance, the Board recommended the payment of 4 kobo per share as dividend for the year subject to shareholders’ approval.

In a final message to shareholders, the chairman of the Board stressed that the company’s strategy is delivering., “It is our belief that our approach will optimise value for all stakeholders: employees, consumers, business partners, and communities where we operate, in the long term. Better days lie ahead for all stakeholders.”