Honeywell Flour Mills Plc has reported a profit before tax of N21.896 billion for the full year ended 31 March 2026. This represents a 3.29% year-on-year increase from N21.199 billion in FY 2025.
The growth was driven by lower cost of sales and net finance income, despite a drop in revenue and weaker operating profit. Revenue declined by 3.39% year-on-year to N360.849 billion, while finance costs fell to N3.905 billion from N5.429 billion in FY 2025.
The directors recommended a dividend of N1.59 billion, which translates to N0.20 per ordinary share of 50 kobo each for the reporting period ended 31 March 2026. This is a change from the previous year when no dividend was declared.
Key performance indicators for FY 2026 compared to FY 2025 include: Revenue at N360.849 billion (down 3.39% YoY), Cost of sales at N324.419 billion (down 4.94% YoY), Gross profit at N36.430 billion (up 12.98% YoY), Operating expenses at N23.256 billion (up 21.88% YoY), Operating profit at N16.577 billion (down 8.34% YoY), Finance costs at N3.905 billion (down from N5.429 billion), Post-tax profit at N16.487 billion (up 13.01% YoY), Total assets at N216.709 billion (up 29.42% YoY), and Shareholders’ funds at N53.932 billion (up 44.03% YoY).
The company's full-year performance was characterized by a weaker top line but a stronger bottom line, attributed to the decline in the cost of sales and net finance income.
Revenue decreased to N360.85 billion from N373.51 billion, primarily due to a significant fall in pasta revenue. Flour products remained the main revenue source, rising to N318.24 billion from N278.96 billion, contributing approximately 88.19% of total revenue.
Pasta products revenue dropped to N35.65 billion from N89.31 billion, while haulage services revenue increased to N6.96 billion from N5.24 billion. On a segment basis, Tincan generated N325.20 billion in revenue, accounting for about 90.12% of group revenue, while Sagamu contributed N35.65 billion, or about 9.88%.
Tincan also accounted for the majority of the group’s earnings, with a profit before tax of N21.88 billion. Sagamu's pre-tax profit was nearly flat at N14.64 million, following a loss after tax of N4.43 billion.
The cost of sales also declined, mirroring the revenue trend. The primary component of the group's cost of sales was raw and packaging materials consumed, which amounted to N291.22 billion, representing almost 90% of the total cost of sales.
