The company delivered a profit after tax of N16.49 billion for the year ended 31 March 2026, representing a 13 per cent increase from N14.59 billion recorded in the previous year. Alongside the earnings growth, the board proposed a dividend payout after a two-year pause, signalling renewed confidence in its financial stability.
In a notable development for investors, Honeywell Flour Mills proposed a dividend of 20 kobo per ordinary share, translating to a total payout of N1.59 billion.
This marks the company’s first dividend declaration in two financial years, a move likely to be welcomed by shareholders who had previously gone without distributions.
Despite the improved bottom line, revenue declined by 3.4 per cent to N360.85 billion from N373.51 billion, reflecting weaker sales performance during the period.
However, the company managed to offset this dip through tighter operational efficiency and cost control. Cost of sales dropped to N324.42 billion from N341.26 billion, resulting in gross profit rising to N36.43 billion from N32.25 billion.
That improved margin performance helped reinforce earnings resilience in a challenging operating environment.
Profit before tax increased slightly to N21.90 billion from N21.20 billion, supported by improved financial management.
Finance income rose to N9.22 billion from N8.54 billion, while finance costs fell significantly to N3.90 billion from N5.43 billion. A reduced tax burden further strengthened profitability, with income tax expense declining to N5.41 billion from N6.61 billion.
The company’s financial position also showed substantial improvement across key metrics. Total assets rose sharply by 29 per cent to N216.71 billion from N167.45 billion, while shareholders’ funds surged 43 per cent to N53.93 billion from N37.45 billion.
Liquidity strengthened as well, with cash and cash equivalents increasing to N9.81 billion from N5.26 billion, providing additional buffer for operations and investment planning.
Earnings per share also improved to 207.90 kobo from 183.96 kobo, reflecting stronger value delivery to shareholders.
Major shareholder Ecowise Horizons Investments Limited retained control with a 77.75 per cent stake, while total substantial shareholding stood at 85.54 per cent of issued capital.
The company’s stock currently trades at N18.20 per share on the Nigerian Exchange, where it has been listed since 2009.
The results highlight a business that is maintaining profitability and strengthening its balance sheet even in a period of revenue contraction. With its core product lines—flour, semolina, noodles, and pasta—still central to its operations, Honeywell’s performance suggests a steady operational base supported by disciplined cost management and improved financial efficiency.