Honeywell Flour Mills Plc, has posted revenue of N17.7billion for the first half (H1) 2018, ended June 30. According to the food manufacturer, revenue was earned from net sales of flour, semolina, wheat meal, pasta and instant noodles products, representing three per cent decline from the N18billion achieved in the same corresponding period of 2017.
Honeywell attributed the key impediment to growth during the period to the Apapa traffic gridlock, which has virtually crippled business activities in Lagos State. Its management said the dilapidated road infrastructure and chaotic traffic situation in and around the nation’s premier port made it inordinately difficult, and enormously expensive to transport goods out of the factory in Tincan Island, adding that the challenge resulted in an effective freight cost increase of about 25 per cent.
“Cost of goods sold increased by one per cent relative to the same period of last year following rising prices of wheat; a major raw material input and this contributed to a decline in gross profit from N3.8billion to N3.2billion,” it stated.It further explained that operating profit was about N1billion after netting off selling and administration costs in the period.
However, the company was able to manage its finance cost, which declined from N1.3billion in the corresponding quarter of the previous year to N892million for the quarter. Consequently, a reduced profit before tax (PAT) of N127million was recorded.