Honeywell Flour Suffers 95% Drop in Profit in 9 Months

By Dipo Olowookere

The board of Honeywell Flour Mills on Wednesday announced the 9 months financial results of the firm for the period ended December 31, 2018.

In the financial statements, the company posted a slight growth in its revenue in the period under review.

According to Honeywell Flour, there was a marginal increase of 0.79 percent in the revenue generated in the first nine months of its financial year, which ended at N55.1 billion against N54.7 billion a year ago.

Business Post reports that the perennial gridlock at Apapa area of Lagos may have taken its toll on the firm’s performance in the period under review as most of the key numbers of the company’s financial statements were in red.

For example, the operating profit of the firm depreciated by 60 percent to N2.8 billion from N7.1 billion, the gross profit went down by 25.4 percent to N9.4 billion from N12.6 billion, the profit before tax declined by 95 percent to N173 million from N3.5 billion, while the profit after tax fell by 95 percent to N143 million from N2.8 billion.

Also, in the period under review, the cost of sales jumped by 8.7 percent to N45.6 billion from N42 billion, while the selling and administrative expenses rose from N5.7 billion to N6.8 billion.

However, in the period under consideration, the finance costs closed at N2.7 billion against N3.6 billion a year ago, while the firm recorded a 19.3 percent growth in its other income, which closed at N173 million in contrast to N145 million 12 months ago.

Taking a look at the balance sheet, there was an improvement of 2.98 percent in the total assets, which closed at N128.6 billion versus N124.8 billion in the corresponding period of 2017, while the shareholders fund and total liabilities fell by 0.6 percent and 5.9 percent respectively to N56.1 billion and N72.5 billion apiece.

Honeywell Flour revealed in its results that its earnings per share (EPS) went down by 94.9 percent to N1.80k from N35.08k, with both the return on asset and return on equity standing at zero percent each.