Honeywell Flour Mills’ stock soars 47% in one week

NIGERIA – Honeywell Flour Mills’ stock surged by 47.1% week-on-week, rising from US$0.0063 on February 10 to US$0.0093 on February 14, according to data from the Nigerian Exchange.

The company’s stock saw consecutive price increaments for five trading sessions. The all-week impressive price shift moved its market value to US$73.6M, spread over 7.930 billion outstanding shares.

The company was valued at US$50M before the rally began and gained US$23.5M in five trading sessions. After the rally, Honeywell is now trading at a fair discount to its 52-week in the equities market.

The food stock had hit a record high of US$0.010 before it retreated. Honeywell Flour Mills regained its profitability after significant earnings pressures due to a constrained operating environment and increasing costs.

The improved bottom line was promoted by robust revenue growth after price adjustment that incorporated Nigeria’s high inflationary environment.

Revenue of the company grew by 123% year on year to settle at US$183.7M at the end of nine months as from December 31, 2024 in the financial year 2024. This was a considerable improvement from US$82.2M in the comparable period in 2023.

Despite a rise in selling and administrative expenses, which increased to US$5.9M from US$2.7, the company’s gross profit rose to US$18.9M from US$15.5M in the prior year.

Finance costs declined by 58% to US$2.6M from US$6.2M, while finance income increased to US$1.8M from US$729,563. The company also recorded a foreign exchange loss of US$5.7, an improvement from the US$13.3M loss reported in the previous year.

On the company’s financial position, total assets rose to US$111M as of December 31, 2024, compared to US$98M as of March 31, 2024.

Total equity increased to N31.8bn from N22.9bn, prompted by a rise in retained earnings, from US$4.6M in March 2024 to US$1.1M. Meanwhile, the company’s trade and other payables increased to US$61.2M from US$54.4M.

Honeywell Flour Mills Plc (HONYFL.ng), releasing its 2025 interim results for the half year, reported that its total indicative share trading liquidity in the past 12 months, as of 4th October 2024, was US$1.72M (NGN2.06B), an average of US$143.47K (NGN171.63M) per month.

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