Honeywell Flour Mills’ 10-Year Plan To Boost Nigeria Food Industry
Honeywell Flour Mills Plc. (HFMP) during its annual general meeting held on Thursday, October 14, at the Civic Centre, Lagos mapped out a plan on how the company intends to expand its business in the post-pandemic economy.
- The 109 Billion Naira Year: The company recorded an all-time high revenue of N109.5 billion, this has been the company’s best performing year ever, causing it to join the exclusive league of Nigerian companies with over 100 billion Naira annual revenue.
Managing Director, Lanre Jaiyeola attributes the marked increase in revenue to increased production output and more efficient operational capabilities at its factories in Apapa, Sagamu, and Ikeja, “In the past financial year, we achieved record production and sales volumes driven by consumer food products which also achieved record sales volume. Our investment in a new Pasta factory at Sagamu paid off greatly as we grew Pasta sales by over 40% to meet the generated demand for our Pasta products.”
The change in consumer spending and habits during the pandemic also contributed to the increase in profit.
- 7 Kobo Dividend, Partnerships And Shareholder Satisfaction: The pandemic has given companies a shift in their outlook, with many struggling to adapt. However, the lessons from the developments in the past 12 months have given HFMP further insights into consumer behaviour prompting the development of innovative products such as the recently launched Spaghetti Mini — the first of its kind in Nigeria in terms of packaging.
Spaghetti Mini, is a high-quality single-serve product that offers convenience to consumers at an affordable price point. The product is an outcome HFMP’s extensive research to identify consumer needs in order to serve them in the most relevant and personalized way. HFMP intends to “free up resources to re-invest in product innovation, and brand building, while creating value for all our stakeholders”, Jaiyeola commented.
The Board recommended the payment of 7 kobo per share as dividend for the year subject to shareholders’ approval.
Fostering strong partnerships is currently one of the building blocks of the company’s strategy, Jaiyeola mentioned during the meeting. “In line with our strategy to increase supply of raw materials from local sources, we have been working through the Flour Milling Association of Nigeria (FMAN), to improve local supply and production capacity of wheat.”
- The 10-Year Plan: During the AGM, HFMP informed its shareholders of its 10-year-plan — to increase investment in innovative product development and advanced technology infrastructure, with a “continued focus on functional proficiency and local content development as the key strategic drivers for expanding shareholder value and growing market share during the next fiscal year.”
According to Lanre Jaiyeola, Managing Director, Honeywell Flour Mills, “Our aim is to offer a portfolio of food products manufactured from a wide range of raw materials drawn from local sources that offer good nutrition and contribute to a healthier and balanced life. This also aligns with the Federal Government’s commitment to achieving the United Nation’s 2030 Agenda of Sustainable Development Goals that seeks to ensure access to safe, nutritious, and sufficient food.
“We will continue to focus on our competitive advantage and improve our product offerings in order to exceed our consumers’ expectations while increasing market share and delivering value to our shareholders.”