Honeywell to pay N1.59bn dividend despite revenue drop – The Sun Nigeria

By Chukwuma Umeorah

Honeywell Flour Mills Plc has proposed a dividend payout of N1.59 billion to shareholders for the financial year ended March 31, 2026, despite recording a decline in revenue during the period.

The company, in its audited financial statements filed with the Nigerian Exchange Limited (NGX), recommended a dividend of 20 kobo per ordinary share, marking a return to dividend payment after no payout was declared in the previous financial year. The proposed distribution comes on the back of improved profitability, with profit after tax (PAT) rising by 13 per cent to N16.49 billion from N14.59 billion recorded in the 2025 financial year.

Revenue, however, fell by 3.4 per cent to N360.85 billion from N373.51 billion in the preceding year, reflecting softer sales performance during the period.

Despite the decline in turnover, the company improved its gross earnings position as cost of sales dropped to N324.42 billion from N341.26 billion, resulting in gross profit increasing to N36.43 billion from N32.25 billion.

Honeywell reported profit before tax (PBT) of N21.90 billion, compared to N21.20 billion a year earlier. The improvement was supported by stronger finance income and lower finance costs. Finance income rose to N9.22 billion from N8.54 billion in the previous year, while finance costs declined to N3.90 billion from N5.43 billion.

Although operating profit moderated to N16.58 billion from N18.08 billion, largely due to a rise in selling and distribution expenses, which climbed to N11.38 billion from N4.58 billion, the company was able to sustain earnings growth through improved financing performance and lower tax charges. Income tax expense declined to N5.41 billion from N6.61 billion, further supporting net earnings growth.

The stronger profitability translated into improved returns for shareholders, with earnings per share increasing to 207.90 kobo from 183.96 kobo recorded in the previous financial year. The company’s financial position also strengthened significantly during the year.

Total shareholders’ funds rose by 44 per cent to N53.93 billion from N37.45 billion in 2025, driven mainly by growth in retained earnings, which increased to N24.12 billion from N7.63 billion.

Total assets expanded to N216.71 billion as of March 31, 2026, compared to N167.45 billion a year earlier. Property, plant and equipment increased substantially to N99.27 billion from N70.80 billion, indicating continued investment in production facilities and operational assets. Cash and cash equivalents also improved to N9.81 billion from N5.26 billion, strengthening the company’s liquidity position.

The audited report further showed that Ecowise Horizons Investments Limited remained the company’s largest shareholder with a 77.75 per cent stake, while substantial shareholders collectively controlled 85.54 per cent of Honeywell Flour Mills’ issued share capital as of March 31, 2026.