16 February 2012

Nigeria: Q3 - Honeywell Flour Declares 23 Percent Profit Growth

The unaudited results made available to market operators by the Nigerian Stock Exchange (NSE), showed a turnover of N27.945 billion in 2011, up by six per cent above the N26.362 billion recorded in the corresponding period of 2010.

However, profit after tax rose by 23 per cent from N1.443 billion to N1.769 billion. On the balance sheet side, total assets of Honeywell Flour grew by N7 billion in the last quarter as the company reached advanced stages in the completion of its capacity expansion project.

The two mill facilities of 500 metric tonnes each, being constructed at its Tincan Port, Apapa, Lagos is expected to increase the company's daily milling capacity from 1,610 metric tonnes to 2,610 metric tonnes by September this year.

"The new facilities being constructed as well as the equipment being installed are state-of-the-art and the very latest in milling technology. This will help to improve our operational efficiency, ensuring that we produce only high quality food products for our customers. The resultant future effects should be a boost to our top and bottom line numbers," Chief Executive Officer of the company, Mr. Babatunde Odunayo, said.

Honeywell Flour is one of the largest flour millers in Nigeria and it produces high quality bread flour and other wheat based foods.

Meanwhile, the volatility in the stock market persisted yesterday as the benchmark indicator; the Nigerian Stock Exchange (NSE) All-Share Index fell by 1.93 per cent to close at 20,392.62.

The market had closed on a positive note the previous day after a five-day bear run was halted by the bulls. However, the positive run could not be sustained yesterday, as more equities shed value.

Consequently, the index fell from 20,667.00 to close at 20, 329.62, while the market capitalisation shed N106 billion to close lower at N6.407 trillion.

Twenty-nine equities went down in value compared with 17 that appreciated.

Dangote Cement Plc led the price losers with N5.80 to close at N110.20 per share. Lafarge Cement WAPCO Nigeria Plc trailed with a loss of N2.27 to close at N53.23 per share. PZ Cussons Nigeria Plc shed N1.40 to close at N26.60 per share.

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