Following the challenge of accessing foreign exchange by manufacturers in the country, the Managing Director of Honeywell Flour Mills Plc, Olanrewaju Jaiyeola, has said beyond cost management that have been adopted, the company is working hard to reduce dependence on foreign exchange thereby focusing on sourcing raw materials locally.
He disclosed this to shareholders at the company 7th Annual General Meeting in Lagos.
According to him, the company had already bought 63 hectares of land as part of their backward integration programme.
In his words: “We are working with local and international agricultural development organizations to develop out grower schemes with local farmers in Nigeria to explore the use of local grains in flour productions. We are committed to ensuring that we produce affordable and nutritional foods for Nigerian and to increase raw material purchases from sustainable local sources”.
On his part the chairman of the company, Dr Oba Otudeko, assured shareholders that they would focus on implementing strategies that will help the company remain on the growth path and return to profitability.
He pointed out that by the end of the current financial year “we expect to complete the development of our state of the art pasta factory at the Honeywell Foods and Agro-allied Complex in Sagamu, Ogun State, with the capacity to increase pasta production by 100 percent.
However, its audited financial statement for the period ended March 31, 2016 shows that the company profit went down by 370 percent to a loss after tax of N3 billion from a profit after tax of N1.1 billion posted same period in 2015. The company increased its revenue slightly by 4 percent to N50.8 billion from N49.1 billion that was recorded in 2015, as Net Assets decreased by 20 percent to N16.4 billion from N20.3 billion.
Earnings of the company also fell by 370 percent to a loss of 38.13 kobo from 14.13 kobo last year, while the company proposed no dividend for the financial year, compared to 5 kobo proposed a year ago. The company’s share price on Tuesday September 20, 2016 closed at N1.41 per share on the floor of Nigerian Stock Exchange.