Exchange Gains Drive Honeywell Flour Mills to N21.3bn Profit....

Samuel Mobolaji

Honeywell Flour Mills Plc posted a robust pre-tax profit of N21.39 billion for the financial year ended March 31, 2025, marking a dramatic recovery from the N8.5 billion loss recorded the previous year.

This turnaround was powered by a surge in revenue alongside a sharp reduction in exchange losses.

Total revenue soared by 98.35% year-on-year to N373.5 billion, driven primarily by flour sales contributing N278.9 billion, with pasta sales adding N89.3 billion and haulage services N5.2 billion. Despite revenue growth, the cost of sales jumped 118.8% to N341.2 billion, slightly suppressing gross profit to N32.2 billion, nearly flat compared to 2024.

Other income nearly doubled to N4.9 billion, boosted by sundry income and a government grant, while administrative expenses more than tripled to N12 billion, and selling expenses climbed by nearly 80%, pressuring operating profit, which fell to N18.2 billion from N28.4 billion.

Crucially, the company’s finance income surged to N8.5 billion, primarily from a realised exchange gain of N5.8 billion. Finance costs plunged 85% to N5.4 billion, reflecting a steep drop in exchange losses from N24.9 billion the prior year to under N800 million, significantly improving net profitability.

Retained earnings swung positive to N7.8 billion, reversing last year’s loss, and total assets increased 12.73% to N167.9 billion. Honeywell’s share price reflected this strong performance, closing at N21.00 on May 30, delivering an impressive year-to-date return of 233.33%.

The company’s financial results highlight resilience amid macroeconomic pressures and currency volatility, underscoring the benefits of effective risk management and operational scale in Nigeria’s competitive food production sector.