This growth was largely driven by a marked improvement in operating performance and a recovery in profitability across the company’s flour-based product segments
NIGERIA – Honeywell Flour Mills Plc has recorded a significant turnaround in its financial performance, reporting a profit after tax of N14.59 billion (US$ 31.7 million) for the fiscal year ended March 31, 2025.
This represents a 246% improvement compared to the previous year’s loss of N10.12 billion (USD 22 million).
The audited financial results, released to the Nigerian Exchange Limited, show a 98% year-on-year revenue growth from N188.31 billion (US$ 409 million) in 2024 to N373.51 billion (US$ 812 million) in 2025. This growth was largely driven by a marked improvement in operating performance and a recovery in profitability across the company’s flour-based product segments.
Despite a 119% increase in the cost of sales, which rose from N155.97 billion to N341.26 billion (US$ 339 million to US$ 742 million), Honeywell Flour Mills posted a profit before tax of N21.2 billion (US$ 46 million). This contrasts sharply with the N8.60 billion (US$ 18.7 million) loss reported in the previous year, marking a 349% turnaround in pre-tax performance.
Finance income grew from zero to N8.54 billion (US$ 18.6 million), while finance costs were significantly reduced by 85% to N5.43 billion (US$ 11.8 million) from N36.26 billion (US$ 79 million), contributing to the improved bottom line. Other income rose to N4.92 billion (US$ 10.7 million), up from N2.28 billion (US$ 5 million) a year earlier.
On the downside, administrative expenses increased to N12.28 billion (US$ 26.7 million), up from N3.51 billion (US$ 7.6 million), while impairment losses on trade receivables also grew substantially to N2.22 billion (US$ 4.8 million).
Despite these cost pressures, the company’s shareholders’ funds rose by 65% to N37.45 billion (US$ 81.4 million), and total assets expanded to N167.45 billion (US$ 364 million), reflecting strengthened financial stability.
The company’s strong earnings per share of 183.96 kobo marked a reversal from the negative 127.61 kobo recorded in the prior year.
This impressive financial rebound has not gone unnoticed by the market. Honeywell Flour Mills’ stock price surged by 9.8% on March 7, 2025, climbing from N12.25 to N13.45 (US$ 0.033 to US$ 0.037), amid a trading volume of nearly 10 million shares. Analysts link the sharp rise in price to renewed investor confidence, driven by the company’s earnings report and the overall improvement in fundamentals.
Honeywell’s market value also rose significantly in February, gaining 47% within a week as the share price moved from US$ 0.0063 to US$ 0.0093. This added more than US$ 23 million to its market capitalization, which rose to US$ 73.6 million from USD 50 million.
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