{"id":8306,"date":"2026-08-10T19:34:36","date_gmt":"2026-08-10T19:34:36","guid":{"rendered":"https:\/\/stakebridgeirpr.com\/media\/?p=8306"},"modified":"2026-08-10T19:34:36","modified_gmt":"2026-08-10T19:34:36","slug":"honeywell-flour-mills-profit-surges-165-to-n6-95bn","status":"publish","type":"post","link":"https:\/\/stakebridgeirpr.com\/media\/honeywell-flour-mills-profit-surges-165-to-n6-95bn\/","title":{"rendered":"Honeywell Flour Mills Profit Surges 165% To N6.95bn"},"content":{"rendered":"

By Kingsley Ani<\/strong><\/p>\n

 <\/p>\n

Honeywell Flour Mills Plc, in its unaudited financial results for the first quarter ended June 2026, reported profit after tax of N6.95 billion, representing a 165 percent year-on-year increase, driven by a 67.5 percent rise in revenue to N112.9 billion, a sharp increase in finance income and lower operating expenses. Gross profit rose to N11.2 billion, operating profit more than tripled to N8.6 billion, while pre-tax profit climbed 190 percent to N9.8 billion. Although production costs increased to N101.7 billion, accounting for 90 percent of turnover, disciplined cost management and stronger treasury income offset rising input costs and supported the company’s earnings recovery.<\/p>\n

DECISION HIGHLIGHT<\/strong><\/p>\n

Honeywell Flour Mills’ earnings rebound reflects improving financial efficiency rather than easing operating conditions, demonstrating that stronger cost discipline and treasury performance can partially offset persistent production cost inflation.<\/p>\n

DECISION MEMO <\/strong><\/p>\n

The first-quarter results indicate that Honeywell Flour Mills has entered a stronger earnings cycle built on multiple profit drivers rather than revenue growth alone.<\/p>\n

The rebound in sales reversed last year’s contraction, but the more important development lies below the revenue line. Despite production costs absorbing most of the additional turnover, lower selling and administrative expenses, combined with significantly stronger finance income, produced a disproportionate increase in operating and net earnings.<\/p>\n

The results also highlight the growing contribution of financial management to corporate profitability. Finance income almost tripled while finance costs remained broadly contained, allowing treasury performance to reinforce operating earnings at a time when manufacturing margins remain under pressure.<\/p>\n

However, the quality of future earnings will increasingly depend on whether operational improvements can replace finance income as the principal source of profit expansion. Rising borrowings suggest that maintaining favourable financing conditions will become progressively more important if interest rates remain elevated.<\/p>\n

Overall, the figures suggest Honeywell Flour Mills is rebuilding sustainable profitability, although the persistence of high production costs continues to limit operating leverage.<\/p>\n

DATA BOX<\/strong><\/p>\n