HoneyWell Posts N1.4 Billion Profit for 2014

Honeywell Flour Mills PLC has released its audited full year financial results for the period ended 31st March, 2015 with a record of N49 billion in sales.

This represents an 11% decline relative to N55 billion achieved the year before, a statement by the company said, citing decline in the value of the Naira as part of the challenges it faced.

The company also declared a Profit Before Tax (PBT) of N1.4 billion and Profit After Tax (PAT) of N1.1 billion while the total assets rose six percent to N67.9 billion.

The company particularly blamed the Apapa traffic gridlock and declining infrastructure around the ports as part of its challenges.

"Roads leading to and from Apapa have effectively become car parks. Truck parking facilities around the ports that should have been completed years ago seem to have become abandoned projects. These problems have compromised our logistics efficiency by frustrating the prompt loading of products resulting in longer loading turnaround times and reduced stock turnover," 

the statement quoted the company's Managing Director Mr. Lanre Jaiyeola as saying.

He noted that it takes, on an average, eight hours for customers to access or exit the factory. Added to these, is a rise in dollar denominated input costs.

"Costs of wheat and spare parts have been rising because of the falling Naira to forex rates. These challenges coupled with weakening macro-economics of the country, means it takes much longer to factor such cost increments into product prices."