NIGERIA – Shares of Honeywell Flour Mills Plc have experienced a significant increase, rising by 32% month-to-date, positioning the company as the top-performing consumer goods stock on the Nigerian Exchange in early January.
This surge follows the mid-December 2024 relaunch of the Honeywell brand by Flour Mills of Nigeria (FMN), which holds a 71.69% stake in the company. The relaunch aimed to redefine and strengthen the brand’s market presence.
According to Mr. Devlin Hainsworth, Managing Director (Food) at FMN, the initiative focuses on enhancing product quality and introducing new packaging inspired by Nigerian culture.
Speaking at the relaunch last year, Devlin Hainsworth highlighted the company’s dedication to meeting the needs of Nigerian consumers during challenging economic times.
“We are here to present all our products, such as noodles, wheat, pasta, and more. We are mindful of the inflation in the country, and that is why we have introduced different sizes of our products to ensure affordability for all Nigerians. The quality of our products remains high despite the varying sizes,” Hainsworth stated.
In addition, Hainsworth noted that Honeywell’s dynamic new identity reflects not only vibrant packaging but also improved product quality and a renewed commitment to exceeding consumer expectations.
In 2024, Honeywell Flour Mills reported an 89.8% year-to-date gain on the Nigerian Exchange, driven by renewed bullish activity in the latter half of the year. The company’s stock opened at N3.32 in January and experienced fluctuations throughout the year, ultimately closing at N6.30 in December.
The company’s financial performance has been robust. Revenue rose 126% year over year from N79.4 billion to N179.5 billion for the six months ending September 30, 2024. This growth was accompanied by a 186% rise in pre-tax profit, reaching N3.4 billion, compared to a loss of N3.9 billion the previous year.
In related developments, the Nigerian Exchange (NGX) delisted Flour Mills of Nigeria’s entire issued share capital from its Daily Official List, effective December 30, 2024. This action followed a proposal by the company’s majority shareholder, Excelsior Shipping Company Limited, to acquire all minority-held shares, leading to the company’s exit from the exchange.
The relaunch of the Honeywell brand and the strategic decisions by FMN appear to have positively influenced investor sentiment, contributing to the recent surge in Honeywell Flour Mills’ stock performance.
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