Shareholders of Honeywell Flour Mills Plc yesterday at the company’s 2nd Annual General Meeting approved the company’s dividend of 13kobo even as the company is set to commission its two new production lines in 2012.
The production line will increase the company’s milling capacity by 1,000 Metric Tonnes, thus bringing the total production capacity of the company to 2,600 Metric Tonnes per day.
Some shareholders who spoke at the event said the consistent dividend policy of the company despite the downturn in the economy was commendable, as the dividend payout has continued to provide succour for investors.
The Chairman of the company, Mr. Oba Otudeko, said amongst others, the company’s policy was to provide shareholders with steady and sustainable dividend pay-out after due consideration for the expansion requirements of the business.
He said that the overall objective of the company was to maximise shareholder value in the long term just as the Board was determined to continue to grow its earnings and profits.
According to him, the improved performance was occasioned by the high level of commitment and un-relented efforts of the Board and management of the company to ensure that shareholders reap good returns on their investment.
On the company’s financials, Otudeko said that despite the particularly challenging operating environment, the company still posted a remarkable result for the financial year ended March 31, 2011.
According to him, earnings per share recorded a significant increase of 112 per cent to N31.43 kobo, up from N14.83 for the preceding year.
Turnover for Honeywell Flour Mill Plc and its subsidiary, Honeywell Superfine Foods Ltd. increased from N33.52 billion in the financial year ended March 31, 2010 to N34.06 billion in 2011.
Profit before tax and profit after tax were N3.52 billion and N2.49 billion respectively in 2011 as compared to N2.33 billion and N1.18 billion in 2010.
This represents an increase of 51 per cent and 112 per cent respectively.
Also, shareholders’ funds grew by 12 per cent to N15.13 billion from N13.51 billion in 2010.
Otudeko attributed the overall improvement in the financial performances for the year to several factors including; Management’s commitment to efficient cost and treasury management; improved internal business processes and system; outstanding customer services and; development of strong brands and high quality products.
The Chairman, who said the company was presently operating close to full capacity leaving room for turnover growth, noted that the factory expansion projects during the year under review were well underway.
“The company is currently increasing its milling capacity by 1,000 MT per day to 2,600 MT per day and making additional investment in high-end technology milling equipment and machinery, power generation, storage and packaging facilities”, he added.