Honeywell Flour Mills Plc reported a 13 percent increase in profit after tax for the financial year ended March 31, 2026, as lower finance costs and stronger gross margins helped offset a decline in revenue.
The flour milling company posted a profit after tax of N16.49 billion, up from N14.59 billion recorded in the previous financial year, according to its audited financial statements released to the Nigerian Exchange (NGX).
Revenue fell by 3.4 percent to N360.85 billion from N373.51 billion a year earlier, reflecting softer sales performance across its product portfolio. Despite the decline in turnover, the company improved profitability through better cost management and reduced financing expenses.
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Gross profit rose by 13 percent to N36.43 billion from N32.25 billion in the previous year, while gross profit margin improved to 10.1 percent from 8.6 percent. Operating profit, however, declined by 8.3 percent to N16.58 billion from N18.08 billion, weighed down by a sharp increase in selling and distribution expenses.
Selling and distribution costs surged to N11.38 billion from N4.58 billion, highlighting rising logistics and route-to-market expenses. Administrative expenses eased to N9.97 billion from N12.28 billion, helping cushion the impact of higher distribution costs.
A major driver of earnings growth was a reduction in finance costs, which declined by 28 percent to N3.9 billion from N5.43 billion in the prior year. Finance income also increased to N9.22 billion from N8.54 billion, boosting the company’s bottom line.
Profit before tax rose modestly by 3.3 percent to N21.9 billion from N21.2 billion, while tax expenses fell to N5.41 billion from N6.61 billion, further supporting net earnings growth.
The company’s balance sheet strengthened significantly during the period. Total assets expanded by 29 percent to N216.71 billion from N167.45 billion, while shareholders’ funds increased by 44 percent to N53.93 billion from N37.45 billion. Retained earnings climbed to N24.12 billion from N7.63 billion.
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Honeywell Flour Mills’ cash and cash equivalents stood at N9.81 billion at year-end, nearly doubling from N5.26 billion in the previous year, reflecting stronger liquidity. The company also reduced current borrowings to N5.46 billion from N6.68 billion.
The board recommended a dividend payment of N1.59 billion, representing 20 kobo per ordinary share of 50 kobo each, marking a return to dividend distribution after no payout was declared in the preceding year.
The company closed its last trading day on Friday, May 29, at N18.20 per share on the NGX. Honeywell Flour Mill began the year with a share price of N21.90 but has since lost 16.9 percent off that price valuation, ranking it 129th on the NGX in terms of year-to-date performance.