Honeywell Flour Mills Plc has recorded a profit before tax of ₦5.5bn for the 2017 financial year, which is an increased of 291 per cent compared to the 2016 PBT.
It recorded a gross profit margin of 24 per cent, compared to nine per cent recorded for 2016.
Its revenue increased by five per cent to ₦53.2bn, while operating profit for the year ended March 31, 2017 increased by 503 per cent to ₦8.3bn.
The firm, in a statement, said the increase in turnover was achieved despite the general squeeze on consumer spend due to macroeconomic headwinds experienced nationwide in 2016.
The company said it implemented forward-looking strategies aimed at input cost management and efficiency in the overall supply chain management process.
“As a result of this, cost of sales declined by 13 per cent to ₦40.5bn compared to ₦46.5bn recorded in the previous year. A combination of increased turnover and reduced cost of sales resulted in a 191 per cent increase in gross profit to ₦12.7bn for the period,” it explained.
The HFMP said its operating profit grew to ₦8.3bn following management’s execution of tactical initiatives in the company’s supply chain, sales and marketing functions to improve cost-to-serve metrics across modern trade and informal market channels in all business segments of the company.
“This resulted in the 23 per cent reduction recorded in selling and distribution costs in the 2017 financial year,” it added.
Commenting on the results, the Managing Director of the company, Mr. ‘Lanre Jaiyeola, said, “These results were achieved as a result of our determination to exceed the expectations of all stakeholders. Despite a challenging environment, we focused on delivering superior quality products to our wide-ranging customers in the retail and wholesale segments while leveraging our route to market capabilities which we continue to invest in.”