Honeywell Flour Mills Plc posted a strong start to its 2026 financial year, reporting robust growth in revenue and profitability for the three months ended June 30, 2026.
According to the company’s unaudited financial statements, group revenue rose 67.2 percent to N112.87 billion, compared with N67.49 billion recorded in the corresponding period of 2025.
The increase in sales translated into stronger profitability despite higher production costs. Cost of sales increased to N101.67 billion from N60.29 billion, while gross profit climbed 55.6 percent to N11.20 billion, up from N7.20 billion a year earlier.
Honeywell Flour also improved operating efficiency during the quarter. Selling and administrative expenses declined to N3.24 billion, compared with N4.65 billion in the corresponding period of 2025, while net operating gains increased to N658 million, from N166 million.
As a result, operating profit surged to N8.61 billion, more than three times the N2.71 billion recorded in the first quarter of the previous financial year.
The company also recorded stronger investment returns during the period. Finance income increased to N2.13 billion, compared with N729 million a year earlier, while finance costs rose modestly to N1.17 billion from N1.07 billion.
In addition, Honeywell Flour reported a foreign exchange gain of N238 million, contributing to net finance income of N1.20 billion, compared with N669 million recorded in the corresponding period of 2025.
Consequently, profit before tax increased by 190.1 percent to N9.81 billion, compared with N3.38 billion recorded a year earlier.
After a tax charge of N2.86 billion, profit after tax rose 165.2 percent to N6.95 billion, up from N2.62 billion in the same period of 2025.
The improved earnings lifted basic earnings per share to 87.69 kobo, compared with 33.06 kobo recorded in the corresponding period of the previous year.
The company’s financial position also strengthened during the quarter. Total assets expanded to N310.18 billion as of June 30, 2026, from N216.71 billion at the end of March 2026, driven by higher inventories, increased receivables and growth in property, plant and equipment.
Inventories increased significantly to N56.79 billion from N31.46 billion, while trade and other receivables rose to N64.12 billion from N28.79 billion.
Cash and cash equivalents also improved to N13.78 billion, compared with N9.81 billion at the beginning of the quarter.
Shareholders’ funds strengthened to N60.89 billion, from N53.93 billion, supported by higher retained earnings, which increased to N31.07 billion from N24.12 billion.
The strong first-quarter performance highlights Honeywell Flour Mills’ continued recovery, supported by robust demand, improved operating discipline and stronger financial management.
With expanding production capacity, growing market demand and improved profitability, the company appears well positioned to sustain its earnings momentum through the remainder of the 2026 financial year.
