Economy
Honeywell Flour Targets More Revenue Streams to Boost FY Performance
By Modupe Gbadeyanka
Managing Director of Honeywell Flour Mills Plc, Mr ‘Lanre Jaiyeola, has disclosed that the leading foods manufacturer in Nigeria, would make efforts to deliver impressive results in the current financial year.
Mr Jaiyeola gave this assurance while commenting on the performance of the company in the first quarter of the year ended June 30, 2019.
According to the financial figures of the firm, the revenue moved up 7 percent to N19.0 billion, compared with N17.7 billion recorded in the corresponding quarter of 2018.
Also, the gross profit margin increased by 7 percent from N3,193 to N3,411 while the operating profit increased by 52 percent from N1.02 billion to N1.54 billion, with profit for the period under review also moving up by 6 percent from N102 million to N108 million.
In a statement issued by Honeywell Flour Mills, Mr Jaiyeola noted that, “Despite the tough operating environment, revenue for the quarter was up by 7 percent to N19 billion, when compared with revenue of N17.7 billion recorded in the corresponding quarter of the last financial year.
“This was driven by sales of our various Pasta products, which led to the continued strong performance of our B2C business line.
“With the commencement of full commercial production at our ultra-modern Foods and Agro-allied complex in Sagamu, Ogun State, we were able to grow our capacity to meet the increasing demand for our Pasta products which is evidenced by the impressive 157 percent volume increase.
“The performance in Pasta gives credence to the company’s commitment to continue to expand its footprint into growth areas that will positively impact the long-term sustainability of the business.”
Mr Jaiyeola further explained that, “Execution of well-embedded savings and efficiency initiatives aimed at improving the company’s margins led to a 14 percent drop in selling and administration expenses from N2.2 billion to N1.9 billion. This translated to the operating profit accelerating at a faster rate than revenue by 52 percent, from N1.02 billion to N1.54 billion.
The growth in operating profit, he further explained, “was however moderated by increase in finance expense which was up by 58 percent from N892 million in the corresponding quarter of the last financial year to N1.4 billion.
“The growth in finance expense was as a result of the cost of financing the Foods and Agro-allied complex which is now being recognised in the income statement following the commencement of commercial operations. As a result, profit for the period only increased by 6 percent from N102 million to N108 million.
Confident of sustaining an improved performance through the remaining period of the financial year and the future, the Managing Director held that, “We are confident about the future and our performance for the full year.
“We will continue to execute on our five core strategic pillars through three key drivers of growth, efficiency and capability.
“We will also strengthen and expand our business portfolio, generate additional revenue streams by offering new products tailored to consumers’ taste and nutritional needs and we will drive margin improvement by enhancing operational efficiency and developing capabilities to extend product offerings and serve new markets.”
By Adedapo Adesanya
The Nigeria Employers’ Consultative Association (NECA) has expressed concern over the renewed enforcement of a ban on the production and sale of alcoholic beverages in sachets and small PET bottles by the National Agency for Food and Drug Administration and Control (NAFDAC).
The group’s director general, Mr Wale-Smatt Oyerinde, warned that the action of the agency could have adverse economic and governance consequences.
NECA is the organisation expressing worry of this issue after the Manufacturers Association of Nigeria (MAN) raised concerns about it earlier this week.
Mr Oyerinde said the enforcement contradicts a directive from the Office of the Secretary to the Government of the Federation dated December 15, 2025, which suspended the ban, as well as a March 14, 2024 resolution of the House of Representatives calling for restraint and broader stakeholder engagement.
The NECA chief said the continued enforcement is already disrupting legitimate businesses, unsettling ongoing investments, and putting thousands of jobs at risk, while weakening confidence in Nigeria’s regulatory environment.
According to Mr Oyerinde, regulation should be based on evidence, proportionality and the rule of law. He noted that the affected products were tested, registered and periodically revalidated under NAFDAC’s regulatory procedures, with alcohol content clearly labelled in line with internationally recognised Alcohol by Volume standards.
He added that underage drinking is primarily an enforcement issue at the retail level rather than a packaging issue, and called for stricter licensing, monitoring, and sanctions for erring retailers rather than a blanket ban on certain product formats.
NECA boss also warned that sachet and small-pack formats reflect affordability realities for many adult consumers, and that eliminating them could push demand into informal, unregulated markets, increasing public health risks and shrinking the formal economy.
He further expressed concern that enforcement efforts are focused on a regulated segment of the beverage industry while more dangerous illicit narcotics and abused pharmaceuticals continue to circulate widely among young people.
On the economic impact, NECA said the wines and spirits value chain supports significant direct and indirect employment across manufacturing, packaging, distribution, transportation, retail and agriculture.
It cautioned that sudden regulatory actions could threaten livelihoods, reduce government revenue and undermine investor confidence.
Addressing environmental concerns, NECA said plastic waste issues should be tackled through improved waste management, recycling systems and extended producer responsibility frameworks, rather than selective product bans.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange lost 0.27 per cent on Thursday, January 29, weakening the Unlisted Security Index (NSI) by 9.79 points to 3,622.77 points from the previous session’s 3,632.56 points, as the market capitalisation recorded a N5.85 billion loss to end at N2.167 trillion compared with Wednesday’s closing value of N2.173 trillion.
Three securities were responsible for the downfall of the alternative stock market, with leaders being Okitipupa Plc, which shrank by N15.70 to end at N218.90 per unit versus the previous day’s N234.60 per unit. Afriland Properties Plc declined by 50 Kobo to close at N14.00 per share compared with the N14.50 per share it finished at midweek, and Food Concepts Plc dropped 9 Kobo to sell at N2.63 per unit versus N2.72 per unit.
Business Post reports that there were two price gainers yesterday led by Nipco Plc, which added N17.48 to its value to settle at N259.48 per share versus N242.00 per share, and Central Securities Clearing System (CSCS) Plc appreciated by 35 Kobo to N40.50 per unit from N40.15 per unit.
During the trading session, the volume of securities went down by 57.3 per cent to 1.9 million units from 4.7 million units, the value of securities decreased by 74.4 per cent to N13.4 million from N52.4 million, and the number of deals slipped by 50 per cent to 16 deals from 32 deals.
When the market closed for the day, CSCS Plc was still the most active stock by value on a year-to-date basis with 15.3 million units traded for N622.9 million, trailed by FrieslandCampina Wamco Nigeria Plc with 1.6 million units exchanged for N108.4 million, and Geo-Fluids Plc with 8.9 million units worth N60.4 million.
CSCS Plc was also the most active stock by volume on a year-to-date basis with 15.3 million units valued at N622.9 million, followed by Mass Telecom Innovation Plc with 10.1 million units sold for N4.1 million, and Geo-Fluids Plc with 8.9 million units transacted for N60.4 million.
By Dipo Olowookere
The gains recorded by RT Briscoe and 40 other equities lifted the Nigerian Exchange (NGX) Limited by 0.22 per cent on Thursday after a day with the bears.
Rebound of the stock exchange was triggered by renewed bargain-hunting activities by the market participants, with RT Briscoe gaining 10.00 per cent to sell for N7.15.
SCOA Nigeria appreciated by 9.91 per cent to N31.60, Deap Capital also jumped by 9.91 per cent to N10.43, Veritas Kapital appreciated by 9.85 per cent to N2.23, and Zichis chalked up 9.80 per cent to trade at N3.81.
Conversely, Haldane McCall depreciated by 9.84 per cent to finish at N3.94, Union Dicon shed 9.79 per cent to close at N8.75, University Press shrank by 8.00 per cent to N5.75, Legend Internet crashed by 7.56 per cent to N5.50, and Austin Laz lost 7.50 per cent to quote at N3.70.
Data indicated that the bourse ended the session with 41 price gainers and 27 price losers, implying a positive market breadth index and strong investor sentiment.
Business Post reports that the industrial goods index was flat yesterday, but this was offset by the others, with the banking space up by 0.68 per cent, the insurance segment rose by 0.64 per cent, the consumer goods counter expanded by 0.46 per cent, and the energy sector grew by 0.10 per cent.
Consequently, the All-Share Index (ASI) went up by 362.93 points to 165,527.31 points from 165,164.38 points and the market capitalisation gained N232 billion to finish at N105.969 trillion versus the previous day’s N105.737 trillion.
The most traded stock for the day was Cutix with 144.6 million units worth N464.9 million, Veritas Kapital traded 56.6 million units for N124.3 million, GTCO sold 26.0 million units valued at N2.6 billion, Tantalizers exchanged 26.0 million units worth N110.0 million, and Japaul transacted 25.9 million units valued at N67.2 million.
When Customs Street closed for business, the activity chart showed the trading was up by 10.94 per cent to 691.4 million shares from 623.2 million shares, the trading value was down by 6.67 per cent to N15.4 billion from N16.5 billion and the number of deals shrank by 8.32 per cent to 38,665 deals from 42,172 deals.
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