Honeywell’s new factory to increase capacity by 150 per cent
• Shareholders approve 6 kobo dividend
Honeywell Flour Mills Plc. has disclosed that its ultra-modern factory to be commissioned by the first quarter of 2018 would increase the firm’s total installation capacity by 150 per cent.
The company currently operates capacity of 48 per cent but the additional 125,00 metric tonnes to be generated on the completion of the factory by Q1, 2017 will increase capacity by 150 per cent.
The Managing Director of the company, Olanrewaju Jaiyeola, while fielding questions from Journalists at the end of the company’s 2016 yearly general meeting, held in Lagos at the weekend said:“On the new factory, we have in place four paster lines with total install capacity of 125,000 metric tones and over our current capacity of 48, this is about 150 per cent increment.”
According to him, the company was making significant changes in its business in order to lay a better platform for the years ahead.
He added:“In FY2018 and on the heels of an improving economic environment, we expect to record further improvements in performance, reigniting our growth agenda and extracting increased efficiency and cost reduction through a recently launched company-wide transformation and continuous improvement programme.
Reviewing its performance, the Chairman of the company, Dr Oba Otudeko told shareholders that the company recorded a remarkable 191 percent increase in gross profit from N4.36 billion to N12.71 billion in the financial year under review.
He explained that the company also grew total revenue from N50.88 billion in 2016 to N53.23 billion in 2017, representing five percent increase year-on-year.
The Company, according to him, also achieved a 291 percent increase in profit before taxation, to N5.47 billion in 2017 from a loss position in 2016. Consequently, the Company declared a dividend of 6 Kobo per ordinary share to its shareholders at its just concluded 8th Annual General Meeting, held on Friday, 22nd September 2017.
Otudeko attributed the improved earnings and profits to the company’s relentless focus on lower cost sourcing for raw materials and foreign exchange and increased efficiency in manufacturing. “In FY2017, we reaped the benefits of a well-executed input cost management strategy”, he added.
Speaking further, the Chairman said: “Our results show continued growth and a substantial step-up in profitability despite the volatile economic environment. It was achieved largely through improved efficiency. Our manufacturing function drove further efficiencies through continuous improvement projects that enhanced engineering and plant maintenance processes and ensured higher levels of production efficiency.”
He assured shareholders of the board and management’s dedication, diligence and commitment to the company’s mission, which is to produce consistently good quality flour and other wheat based products for the complete satisfaction of its highly valued customers and consumers.