Honeywell Flour Mills Plc delivered a mixed but resilient performance in FY 2026, as it actively navigated weaker sales and rising costs.
For the year ended March 31, 2026, the company grew profit before tax to ₦21.896 billion, rising 3.29% year-on-year.
This compared with ₦21.199 billion in FY 2025, even as revenue pressures intensified across key product lines.
Revenue fell 3.39% to ₦360.849 billion, because pasta sales weakened significantly during the period.
However, flour products supported the business strongly and helped stabilise overall revenue performance.
Meanwhile, management reduced cost of sales to ₦324.419 billion, which boosted gross profit to ₦36.430 billion.
As a result, gross profit climbed 12.98% due to lower raw material and freight costs.
Cost Discipline Strengthens Honeywell Gross Margins
However, operating profit dropped to ₦16.577 billion because selling and distribution expenses rose sharply.
In particular, the company increased marketing and product development spending, which weighed on operating efficiency.
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On the positive side, finance income strengthened and the company cut finance costs, raising net finance income to ₦5.32 billion.
Consequently, lower borrowing costs and stronger interest income helped lift overall profitability.
Profit Resilience Amid Revenue Decline
Post-tax profit rose 13.01% to ₦16.487 billion as financial gains offset weaker operating results.
In response, the board declared a dividend of ₦0.20 per share, totalling ₦1.59 billion for shareholders.
This marked a return to dividend payments after the company skipped payouts in FY 2025.
Flour products generated about 88% of revenue and firmly anchored business performance.
Meanwhile, Tincan operations drove most earnings, while Sagamu lagged behind.
Total assets increased to ₦216.709 billion as the company expanded receivables and asset base.
Shareholders’ funds rose to ₦53.932 billion, strengthening the company’s equity position.
However, liquidity pressure persisted as current liabilities exceeded current assets.
Therefore, management relied on support from Golden Penny Foods Limited to reinforce stability.
Overall, the company offset revenue weakness through cost control and stronger finance income.
