Chairman, Honeywell Flour Mills Plc, Dr. Oba Otudeko

Shareholders of Honeywell Flour Mills Plc have hailed the board of directors of the company for the improved performance and the dividends of N1.19 billion for the year ended March 31, 2012.

The shareholders, who spoke at the  third Annual General Meeting (AGM) of the company in Lagos on Tuesday said the company had consistently done very well despite the harsh economic environment. They therefore, approved the N1.19 billion dividends, which translate into 15 kobo per share for every 50 kobo share.

Addressing the shareholders at  the AGM, Chairman of Honeywell Flour Mills Plc, Dr. Oba Otudeko, said  having achieved  good performance in the year,  the board of directors  recommended a total dividend pay-out of N1.19 billion, and subject  to  the approval of the shareholders, the dividend  will be  paid on 26th September, 2012.
He stated that the recommendation was in line with the dividend policy of Honeywell in providing shareholders with steady, growing and sustainable dividends.

According to Otudeko, the financial year ended March 31, 2012, was a remarkable one for the company as Honeywell Flour Mills posted improved performance in spite of the various challenges especially in the area of raw materials, energy and logistics.
“Broad sales growth was achieved across our strong food brands resulting in a 12 per cent increase in revenue from N34 billion to N38 billion. Good management of our costs led to a Profit Before Tax (PBT) of N3.66 billion, relative to last year’s performance of N3.51 billion; a growth of four  per cent year-on-year. Our company’s profit after tax (PAT) rose by eight per cent to N2.7 billion, from N2.49 billion achieved in 2011,” he said.

He added that shareholders’ funds and total assets increased by 11 per cent and 54 per cent to N17 billion and N45 billion respectively. The chairman  said the company was being positioned to be the leading Fast Moving Consumer Goods (FMCG) manufacturer in Nigeria.

Also in his address to shareholders, the Executive Vice Chairman/Chief Executive Officer of Honeywell Flour Mills, Mr. Babatunde Odunayo,  said despite the challenges, the company was able to successfully defend   their quality superiority and brand leadership positions across all product offerings.

“We are proud to say that our flour, Semolina, and Wheat meal products remained in peak demand whilst significant growth was experienced in respect of our pasta and noodles products,” he said.

Speaking on the expansion project, Odunayo disclosed that the new plant would be commissioned in October 2012, which he said, would enable the company to achieve a 62 per cent capacity increase in whole wheat meal, from 1,610 metric tonnes (mt)  per 24 hours to 2,610mt/24 hours.