Honeywell Flour Mills Plc recorded a 1,115.17% improve in pre-tax profit to N31.40 billion for the six months ended September 30, 2026, in contrast with N2.58 billion within the corresponding interval of 2025, supported by stronger working margins and improved phase efficiency.
According to the corporate’s unaudited half-year 2027 financial statements filed with the Nigerian Exchange (NGX) on October 30, 2026, revenue elevated by 41.29% to N233.79 billion from N165.47 billion.
The half-year pre-tax profit has already exceeded the N21.90 billion reported for the full financial year ended March 2026, whereas profit after tax rose to N22.61 billion from N1.62 billion.
Operating Margins drive earnings restoration:
Honeywell’s earnings enchancment was supported by stronger gross profitability, decrease working bills and a swing from internet finance expense to internet finance earnings.
- Gross profit elevated by 184.62% to N33.66 billion from N11.83 billion, as price of gross sales grew by 30.29%, beneath the 41.29% improve in revenue.
- Gross margin improved to roughly 14.40% from 7.15%, whereas working margin elevated to 12.04% from 2.23%.
- Operating profit rose by 661.81% to N28.15 billion from N3.70 billion, reflecting the development within the firm’s core operations.
- Selling and administrative bills declined by roughly 18.5% to N7.37 billion, whereas internet working beneficial properties elevated to N1.86 billion.
- Finance prices fell to N3.37 billion from N4.79 billion, whereas finance earnings rose to N5.81 billion from N1.47 billion.
- The firm reported internet finance earnings of N3.25 billion, in contrast with a internet finance expense of N1.11 billion within the corresponding interval of 2025.
Foreign trade beneficial properties declined to N811 million from N2.22 billion, indicating that forex beneficial properties weren’t the principle driver of the earnings enchancment.
Pre-tax margin consequently elevated to roughly 13.4% from 1.6%, whereas earnings per share rose to N2.85 from N0.20.
Sagamu Plant returns to profit:
Honeywell’s Sagamu operation recorded a major enchancment throughout the half-year interval, transferring from working losses to profitability.
- Sagamu revenue elevated to N46.70 billion from N35.91 billion, whereas gross profit recovered to N350 million from a gross lack of N5.34 billion.
- Sagamu recorded an working profit of N1.04 billion, in contrast with an working lack of N6.95 billion within the corresponding interval of 2025.
- Tin Can revenue elevated by 65.4% to N214.21 billion, whereas gross profit rose to N33.65 billion from N17.17 billion.
- Tin Can working profit elevated to N27.56 billion from N10.64 billion, remaining a significant contributor to group earnings.
- For the 12 months ended March 2026, Sagamu recorded pre-tax profit of N14.64 million however an after-tax lack of N4.43 billion, in accordance to Nairametrics’ previous coverage.
- The newest outcomes lengthen Honeywell’s earnings restoration after the corporate reported a decline in nine-month pre-tax profit to N7.7 billion for the interval ended December 2025.
For the complete 12 months ended March 2026, working profit declined to N16.58 billion from N18.08 billion, though internet finance earnings supported pre-tax earnings.
With working profit reaching N28.15 billion within the newest half-year interval, the earnings restoration is now extra strongly supported by working efficiency.
Honeywell borrowings rise 61%:
Honeywell’s complete borrowings elevated by 60.92% to N52.27 billion from N32.48 billion on the finish of March 2026, reflecting better reliance on short-term financing.
- Short-term loans rose to N28.25 billion from N5.46 billion, whereas CBN long-term loans declined to N11.69 billion from N14.48 billion.
- Capital expenditure elevated to N21.47 billion from N3.44 billion, lifting development in progress to N53.56 billion.
- Operating money movement rose to N16.12 billion from N13.46 billion, whereas internet financing money movement turned optimistic at N14.83 billion.
- Short-term intercompany mortgage receivables elevated to N89.74 billion from N40.56 billion, whereas inventories rose by 39.38% to N43.85 billion.
- Total property elevated by 35.86% to N294.43 billion, whereas shareholders’ funds rose by 38.98% to N74.95 billion.
- Retained earnings elevated to N45.14 billion from N24.12 billion regardless of dividend funds of N1.586 billion, in keeping with the declared dividend of 20 kobo per share.
Honeywell’s shares closed at N22.55 on October 30, representing a achieve of 25.28% throughout the month.
Investors shall be monitoring whether or not working money movement can help the corporate’s greater capital expenditure and scale back reliance on short-term borrowings, alongside the restoration of considerable intercompany mortgage receivables.
