Leading foods manufacturer, Honeywell Flour Mills Plc (HFMP), a subsidiary of Honeywell Group Limited, has promised to sustain growth in revenues through innovation and capacity expansion. The Company also assured stakeholders that the future of the business would be shaped by innovation; introduction of new and unique food products whilst maintaining its commitment to increasing local content.
This promise was made yesterday by the company’s Chairman Dr. Oba Otudeko CFR at its 10th Annual General Meeting (AGM) held in Lagos.
Addressing shareholders in his address, Otudeko said HFMP remains focused on growth and is committed to entrenching itself in the markets where it currently operates while capturing new markets. “My conviction that ours is a company of the future is borne out of the knowledge that we are making significant investments in organic growth and expansion which is cardinal to meeting the needs of our growing customer base and securing future earnings”.
Speaking on some of the measures the company has employed to promote efficiency and growth, Otudeko noted that, “We have increased our capability and measurement of external market trends, and we regularly collate customer and consumer insights to better develop category and brand strategies. Our strategy focuses on investing in markets and segments which we identify as attractive because we are confident that we can secure profitable growth and build further competitive advantage.”
Responding to shareholders enquiries, the Managing Director, Lanre Jaiyeola, assured shareholders that the company would strengthen revenue by expanding its portfolio and marketing new products tailored to consumers’ taste, nutritional needs, and pockets. “Following deep research work on Nigeria’s consumer behavior and needs, we are in a position to produce safe, healthy and affordable food products for all Nigerians”, Jaiyeola said.
For the financial year ended March 2019, the company’s revenue increased by 4 percent to N74.4 billion, total assets increased by 10 percent to N137.5 billion, while the company had a gross profit margin of 15 percent. Operating profit reduced by 58.7 percent to N3.9 billion, reflecting the major impact the traffic situation in Apapa and environs had on the evacuation of finished goods to customer locations.
In keeping with its objective of identifying new areas of growth and competitive advantage, HFMP began commercial operations from its new multi-billion Naira ultra-modern factory in Sagamu, Ogun State during the year under review. On the new Sagamu factory, Jaiyeola said, “Management expects that concentrating pasta production in one location and sales of the increased volumes of pasta will boost revenues for the business, thereby improving operating profits in the coming years.”
In a final message to shareholders, Chairman of the Board, Otudeko, stressed that the Company will continue to innovate and improve its product offerings in order to exceed consumers’ expectations and increase market share.