Honeywell shareholders approve N475.8m dividend payment
The shareholders of Honeywell Flour Mills Plc have approved a dividend payment of 60 kobo for every 50 kobo ordinary share, amounting to a total of N475.8m for the 2018 financial year.
The Chairman, Board of Directors, Honeywell Flour Mills, Dr Oba Otudeko, while speaking at the company’s 9th Annual General Meeting in Lagos on Thursday, said the company’s revenue grew by 34 per cent to N71.5bn within the period under review, as against N53.2bn recorded in the corresponding period of 2017.
He said the gross profit also grew by 26 per cent from N12.7bn in the previous year to N16.1bn, while the profit after tax stood at N4.4bn.
According to Otudeko, the company, in continuation of its focus on consistent delivery of profitable top line growth through high capacity utilisation, will commence commercial production from its Sagamu facility in October this year.
He assured shareholders that in the new financial year, the company would remain committed to its vision to build market-strong, highly-desired and recognisable consumer brands that would be well distributed across Nigeria.
Otudeko, however, called on the Federal Government to address the challenges associated with roads in and around Tin Can and Apapa ports, which he said were affecting businesses operating from those axes.
He encouraged the Federal Government to allow active participation of the private sector in the development and operation of ports in strategic regions of the country.
“The existing ports in Lagos are overcrowded; there is the need for government to address these challenges to improve trade movement. Private sector participants should also be allowed to build ports to support government’s efforts.” Otudeko added.
The Managing Director, Honeywell Flour Mills, Mr Lanre Jaiyeola, said the company successfully contended with macroeconomic challenges, including higher energy and transportation costs, through the meticulous execution of its continuous improvement strategy.
He said the company had implemented strategic projects to limit production losses, conserve energy and reduce downtime from equipment failure.
According to him, Honeywell’s management also implemented a carefully planned input-cost management strategy to ensure profitability, even amid the pressures of the tough operating environment.
He said, “Throughout the period under review, Honeywell Flour Mills Plc was focused on its mission to provide nutrient-fortified food products to more than 1.3 billion consumers, in furtherance of its ambition to significantly contribute to food security in Nigeria.
“The company remains very optimistic about the future of the business and we look forward to the new financial year with excitement given the enormous work that has been done to ensure commencement of production at the new factory site in Sagamu and roll out of new products.”