After series of recent bad news it got enmeshed in, the board of Honeywell Flour Mills Plc, on Friday gave shareholders reason for cheer, when it released the audited financials for the full-year ended March 31, 2021,  showing robust double digit growth in top and bottom-lines.

Most significant are the fact that net profit rose faster than revenue, with the directors proposing a dividend of N555.113m, translating to seven kobo per share, up from N317.207m, or four kobo each at the end of last year, for approval at the next annual general meeting.

The external auditors, Bakertily Nigeria, also drew attention to the company’s N60.48bn total bank loans facility, responsible for the N1.841bn or 43.55% jump in finance cost (interest on borrowings and overdraft), from N4.227bn to N6.069bn, up from N58.293bn, an amount it considered “a key audit matter because of its materiality on the company’s financial position as at 31 March 2021.”

Nonetheless, the auditors noted that “management has not identified a material uncertainty that may cast significant doubt on the entity’s ability to continue as a going concern,” following which none is disclosed in the financial statements.  

According to the report, sale revenue for the period increased by 36% from N80.45bn in 2020 to N109.594bn; while cost of sales increased by N27.385bn or 41.13%, driven by raw and packaging materials consumed amounting to N82.662bn, up from N57.236bn. This left gross profit at N15.621bn, up from N13.861bn.

Other operating income during the period grew from N116.209m to N140.712m; selling and distribution expenses dropped from N6.035b

n to N5.543bn; even as general and administrative expenses stayed flat at N2.572bn from N2.444bn.

Operating profit rose from N5.497bn to N7.646bn; following which finance costs left profit before tax at N1.576bn, 24% better than the previous N1.27bn; while net profit grew by 73% to N1.125bn, compared to previous year’s N650.492bn