Honeywell Flour Mills Plc has reported a profit before tax of N21.9 billion for the financial year ended March 31, 2026, despite a decline in revenue, as lower production costs and stronger finance income boosted earnings.
The company’s audited financial statements filed with the Nigerian Exchange (NGX) showed that profit before tax rose by 3.3 per cent from N21.2 billion recorded in the previous year.
In a move likely to excite shareholders, the Board of Directors recommended a dividend payout of N1.59 billion, representing 20 kobo per ordinary share of 50 kobo each. The company did not declare a dividend in the 2025 financial year.
Honeywell’s revenue declined by 3.4 per cent to N360.85 billion from N373.51 billion in 2025, largely due to a sharp drop in sales from its pasta business.
However, lower production costs helped cushion the impact of the revenue decline. Cost of sales fell by 4.9 per cent to N324.42 billion, resulting in a 13 per cent increase in gross profit to N36.43 billion.
Key financial highlights include:
- Revenue: N360.85 billion, down 3.4 per cent
- Gross profit: N36.43 billion, up 13.0 per cent
- Operating profit: N16.58 billion, down 8.3 per cent
- Profit before tax: N21.90 billion, up 3.3 per cent
- Profit after tax: N16.49 billion, up 13.0 per cent
- Total assets: N216.71 billion, up 29.4 per cent
- Shareholders’ funds: N53.93 billion, up 44.0 per cent
Flour products remained the company’s strongest revenue contributor, generating N318.24 billion and accounting for more than 88 per cent of total sales. This represents a significant increase from N278.96 billion recorded in the previous year.
In contrast, revenue from pasta products plunged to N35.65 billion from N89.31 billion, while haulage services contributed N6.96 billion, up from N5.24 billion.
The company’s Tincan operation remained the major earnings driver, accounting for over 90 per cent of group revenue and delivering a profit before tax of N21.88 billion. The Sagamu operation contributed N35.65 billion in revenue and recorded a marginal profit before tax of N14.64 million.
Despite stronger gross profit, operating profit declined to N16.58 billion from N18.08 billion as selling and distribution expenses more than doubled.
Selling and distribution costs rose to N11.38 billion from N4.58 billion, driven by increased marketing expenditure of N6.31 billion and product development expenses of N4.69 billion.
A major contributor to the improved bottom line was stronger finance income and lower finance costs.
Finance income rose to N9.22 billion from N8.54 billion, driven largely by interest earned on loans to related parties, which increased to N4.80 billion from N2.70 billion.
Meanwhile, finance costs declined to N3.91 billion from N5.43 billion, supported by lower borrowing costs and the absence of exchange-rate losses recorded in the previous year.
As a result, net finance income increased significantly to N5.32 billion from N3.11 billion, helping offset weaker operating earnings and pushing profit before tax higher.
