Honeywell Flour Mills posts N1.4b profit
This represents 11 per cent decline relative to N55 billion achieved the year before. A statement attributed this to the pressure from intense competition, around price war and the falling value of he Naira.
However, the company declared a profit before tax (PBT) of N1.4 billion and profit after tax (PAT) of N1.1 billion.
Other key performance indicators were: finance costs reduced by 35 per cent and total assets rose six per cent to N67.9 billion in the company’s balance sheet.
The company attributed the challenging results to several factors including the Apapa traffic gridlock and declining infrastructure around the ports. 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’’, said the statement.
The Managing Director, Lanre Jaiyeola, lamented the economic loss arising from the falling Naira value, the perennial chaotic traffic and debilitating condition of the roads leading in and out of Apapa.
According to him, the company’s customers, suppliers, haulage partners and staff demonstrated great courage, loyalty and commitment during these challenging times. 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.