Honeywell Flour Mills Plc records a significant turnaround, posting N21.39 billion pre-tax profit for FY 2025, recovering from an N8.5 billion loss in 2024, driven by reduced exchange losses and nearly 100% revenue growth
[dropcap]H[/dropcap]oneywell Flour Mills Plc has announced a remarkable financial turnaround, reporting a pre-tax profit of N21.39 billion for the financial year ended March 31, 2025.
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This significant achievement marks a strong recovery from the N8.5 billion loss recorded in the corresponding period of 2024.
The rebound was primarily driven by a substantial reduction in exchange losses and a near doubling of revenue.
The company’s total revenue surged by 98.35% to N373.5 billion in FY 2025, up from N188.3 billion in the same period last year.
Sales of flour products constituted the largest portion of this revenue, contributing N278.9 billion, or 74.7% of the total. Pasta sales followed with N89.3 billion, while haulage services added N5.2 billion.
Despite the impressive revenue growth, the cost of sales also saw a significant increase, rising by 118.80% to N341.2 billion.
This substantial rise in costs offset much of the revenue growth, resulting in a slight decline in gross profit to N32.2 billion, down 0.30% compared to the previous year.
On a positive note, other income increased to N4.9 billion from N2.2 billion in the prior year, largely due to sundry income of N3.5 billion and a government grant of N1.1 billion.
However, administrative expenses saw a sharp rise of 244.3% to N12 billion, and selling and distribution expenses increased by 79.8% to N4.5 billion.
This significant achievement marks a strong recovery from the N8.5 billion loss recorded in the corresponding period of 2024. The rebound was primarily driven by a substantial reduction in exchange losses and a near doubling of revenue.
These escalating costs led to a decline in operating profit, which fell to N18.2 billion from N28.4 billion in the previous year.
Crucially, the company’s return to profitability was bolstered by a significant reduction in finance costs and a gain from exchange rate movements.
Finance income stood at N8.5 billion, predominantly from a realized exchange gain of N5.8 billion. Furthermore, finance costs dramatically reduced from N36.2 billion to N5.4 billion, representing an 85.03% decrease.
A major factor in this reduction was the substantial drop in exchange losses, which amounted to N787.8 million, a sharp decrease from N24.9 billion in the prior year, reflecting a period of relative Naira stability.
On the balance sheet, retained earnings saw a positive shift, rising to N7.8 billion for the quarter, a strong improvement from the N6.9 billion loss reported a year earlier. Total assets also increased by 12.73%, reaching N167.9 billion.
Key Financial Highlights (FY 2025 vs. FY 2024):
Revenue: N373.5 billion, up 98.35% YoY
Cost of Sales: N341.2 billion, up 118.80% YoY
Gross Profit: N32.2 billion, down 0.30% YoY
Administrative Expenses: N12 billion, up 244.34% YoY
Operating Profit: N18.2 billion, down 35.64% YoY
Finance Costs: N5.4 billion, down 85.03% YoY
Pre-Tax Profit: N21.3 billion, up 348.80% YoY (from a loss)
Total Assets: N167.9 billion, up 12.73% YoY
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As of market close on May 30, 2025, shares of Honeywell Flour Mills were priced at N21.00, demonstrating a year-to-date performance of 233.33%, reflecting investor confidence in the company’s recovery.
Peculiar Adirika is a journalist and contributor to Freelanews.com, covering news, business, and public affairs.
