Innovation and Capacity Expansion: Honeywell To Sustain Revenue Growth

Honeywell Flour Mills PLC

Honeywell Flour Mills Plc (HFMP), a subsidiary of Honeywell Group, has said it will continue 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.


These aspirations were contained in the 2019 Annual Reports and Accounts of the Company and further information is expected at the Company’s 10th Annual General Meeting (AGM) which is scheduled for Thursday 26th September in Lagos.

In his annual report based message to shareholders, Chairman of the Board of Directors, Dr Oba Otudeko CFR, 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”, Otudeko said.

Speaking on some of the measures the company has employed to promote efficiency and growth, Otudeko said: “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.”

Also speaking ahead of the AGM, Managing Director of the company, 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, 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.


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