Honeywell Flour Expects Market Conditions to Remain Tough

By Dipo Olowookere

The Chairman of Honeywell Flour Mills Plc, Mr Oba Otudeko, says he expects market conditions to remain tough, though he sees the company coming out stronger.

Business Post reports that businesses in Nigeria are battling with a tough operating environment as the benchmark interest rate is at 11.5 per cent, with the inflation as of September 2021 at 16.63 per cent, low purchasing power of consumers and foreign exchange (FX) scarcity, which has put the Naira to Dollar exchange rate at N570/$1 at the parallel market, though it traded at N414.07/$1 at the Investors and Exporters (I&E) segment on Wednesday.

Addressing shareholders at the recent Annual General Meeting (AGM) of the firm in Lagos, the industrialist said these problems and others forced the organisation to design a 10-year strategy aimed to expand the portfolios of the company.

According to him, Honeywell Flour will make investments in technology and come up with products that will excite consumers within the period to drive growth and profitability.

“We expect market conditions to remain tough,” Mr Otudeko informed some investors present at the gathering, but assured them that, “We are adapting to this new reality by executing with speed in order to deliver competitive returns and meet the needs of our multiple stakeholders.”

“We are committed to investing in the capabilities we need, the know-how and the talent to continue to create value,” he further assured.

He recalled how the company navigated through the COVID-19 pandemic last year and “delivered a strong performance” by “working collaboratively towards the execution of our corporate goals, guided by clear priorities; keeping our people safe and motivated, ensuring the supply of our food products to consumers across the length and breadth of the country, and caring for the communities where we operate.”

The Managing Director of Honeywell Flour, Mr Lanre Jaiyeola, in his presentation, said in the fiscal year, the company “achieved record production and sales volumes driven by consumer food products which also achieved record sales volume.”

He also assured shareholders that the board and management “will continue to focus on our competitive advantage and improve our product offerings in order to exceed our consumers’ expectations while increasing market share, and delivering value to our shareholders.”

Commenting on the new plan, Mr Jaiyeola disclosed that it “will see Honeywell Flour Mills transition to become Honeywell Foods.”

“Our aim is to offer a portfolio of food products manufactured from a wide range of raw materials drawn from local sources that offer good nutrition and contribute to a healthier and balanced life.

“Our aim also aligns with the Federal Government’s commitment to achieving the United Nation’s 2030 Agenda of Sustainable Development Goals that seeks to ensure access to safe, nutritious and sufficient food,” he explained at the yearly shareholders’ event held precisely on Thursday, October 14, 2021, at the Civic Centre, Victoria Island.