Monday, 22 July 2013

Nigeria: Honeywell Flour to Pay N1.3 Billion Dividend

The board of directors of Honeywell Flour Mills Plc (HFM) has recommended the payment of N1.3 billion as dividend for the year-ended March 31, 2013.
The dividend, which translates into 16 kobo per share, is one kobo higher than the 15 kobo paid the previous year. HFM disclosed the dividend recommendation in a notification to the Nigerian Stock Exchange (NSE) last week. However, details of the financial results for the year are yet to the made available.
In its last results, which was for the nine months ended December 31, 2012, the company reported a turnover of N33billion, showing a growth of 18 per cent over the N27.9 billion achieved in the comparative period of 2011. Despite operating in an increasingly tough economic environment occasioned by significant input cost pressure, HFM had witnessed strong growth in its product categories while its management was able to ensure that resources were prudently managed. This led to profit before tax of N2.54 billion as against N2.52 billion in 2011.

Speaking on the results, the Executive Vice-Chairman/Chief Executive Officer of HFM, Mr. Babatunde Odunayo, said: "We continue to appreciate our ever loyal customers who are responsible for our consistent quarter-to-quarter solid performance. We are glad that our persistent focus on quality as our unique selling proposition has resonated well with our consumers, thereby resulting in the 18 per cent growth in turnover. We are increasing the investments in our brands to ensure that we continue to satisfy our customers' needs in terms of quality, affordability and accessibility of our portfolio of Honeywell branded food products."
According to him, HFM in the last quarter of 2012, completed its capacity expansion project, taking its installed milling capacity from 1,610MT/day to 2,600MT/day with the installation of state-of-the-art production facilities at its Tin Can Port, Apapa location. With the coming on stream of this, additional production capacity for its Flour, Semolina and Wheat Meal brands increased considerably. Revenue is expected to increase considerably in the next quarter.
The company's recent capital investments, he added, resulted in a 32 per cent increase in total assets from N45.4 billion as at December 31, 2011 to N60 billion as at December 31, 2012.
"Going forward shareholders' value will further appreciate significantly as the new 1,000MT/day mill is expected to boost the company's top- and bottom-line as it continues to satisfy the growing needs of its teeming customers and consumers," Odunayo said.
Source: ThisDay

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