Shareholders of Honeywell Flour Mills Plc last Friday approved N475.812 million for the year ended March 31, 2017. The dividend, which translates to six kobo per share, was approved at the annual general meeting (AGM) of the company held in Lagos.
The company recordedÂ revenue of N53.23 billion, up by five per cent compared with N50.88 billion posted in the 2016. Gross profit soared by 191 per cent fromÂ N4.36Â billion toÂ N12.71Â billion. The company achieved a profit before taxation,Â Â ofÂ N5.47Â billion in 2017 from a lossÂ Â ofÂ N2.869Â billion in 2016, while profit after tax stood atÂ N4.304Â billion as against a loss ofÂ N3.023Â billion in 2016. Consequently, the company declared a dividend of six Kobo per ordinary share to the shareholders.
Speaking during the AGM, Chairman of Honeywell Flour Mills, Dr. Oba Otudeko, said that the companyâ€™s current performance indicated a leap from the results of the financial year 2016.Â Â HeÂ attributed the improved earnings and profits to the companyâ€™s relentless focus on lower cost sourcing for raw materials and foreign exchange and increased efficiency in manufacturing.
â€œIn FY2017, we reaped the benefits of a well-executed input cost management strategy. Our results show continued growth and a substantial step-up in profitability despite the volatile economic environment. It was achieved largely through improved efficiency. Our manufacturing function drove further efficiencies through continuous improvement projects that enhanced engineering and plant maintenance processes and ensured higher levels of production efficiency,â€ Otudeko said.
The chairman assured shareholders of the board and managementâ€™s dedication, diligence and commitment to the companyâ€™s mission to produce consistently good quality flour and other wheat based products for the complete satisfaction of its highly valued customers and consumers.
Speaking in the same vein, Managing Director ofÂ Â the company,Â Mr. Lanre Jaiyeola, noted that the company was making significant changes to its business in order to lay a better platform for the years ahead.
â€œIn FY2018 and on the heels of an improving economic environment, we expect to record further improvements in performance, reigniting our growth agenda and extracting increased efficiency and cost reduction through a recently launched company-wide transformation and continuous improvement programme,.â€ Jaiyeola said.
Meanwhile, a shareholder,Â Sir Sunny Nwosu, commended the companyâ€™s efforts at ensuring that it remains on the path of growth, urging them to continue to focus on lower cost sourcing for raw materials.