Honeywell Flour Mills Plc has shocked investors and the market by bouncing back into profit, posting a strong N14.6 billion profit after tax for the financial year ended March 31, 2025. This is a sharp turnaround from the N10.1 billion loss it recorded just last year, showing a big improvement in Nigeria’s consumer goods sector amid easing economic pressure.
The company’s financials released this week showed a dramatic rise in revenue and a significant boost from exchange rate gains. With the naira now more stable against the dollar compared to early 2024, Honeywell saw N8.5 billion in finance income, helping to push its profit before tax to N21.2 billion.
For a company that heavily depends on importing raw materials, the recent stability in the foreign exchange market has come as a big relief. In contrast to the N25 billion in unrealised forex losses it suffered last year, Honeywell only reported N787.9 million in such losses this time around.
“The company’s finance income was largely from the impact of favourable exchange rate movements on dollar-denominated transactions,” the annual report stated.
Total revenue for the year nearly doubled, jumping from N188.3 billion in 2024 to N373.5 billion in 2025 — a 98% increase. Flour products made up the majority of this revenue, contributing N278.9 billion or nearly 75%. Pasta sales came in at N89.3 billion, while haulage services added another N5.2 billion.
However, rising costs remain a concern. The cost of sales more than doubled, increasing from N155.9 billion in 2024 to N341.2 billion in 2025. Despite this, the company’s gross profit stayed stable at N32.2 billion, showing how it managed to maintain some level of profitability amid inflation and cost pressure.
The Nigerian economy is beginning to show signs of recovery. Headline inflation, which had soared past 33% in 2024, has started to cool as the Central Bank of Nigeria’s monetary tightening and exchange rate reforms take hold. This has helped companies like Honeywell manage their input costs better — especially on fuel, packaging, and foreign supplies.
Administrative expenses, however, shot up to N12.1 billion from N3.5 billion. This was mainly due to one-time impairment charges and the cost of bringing new subsidiaries from free trade zones into the main business. Even with this increase, Honeywell reported an operating profit of N18.1 billion — a strong figure given last year’s turbulence.
Honeywell is now part of a growing list of consumer goods companies making a comeback. Others like Nestlé Nigeria, Cadbury, and Unilever have all posted improved earnings, reversing the losses seen during COVID-19 and the early days of FX liberalisation.
Investors have taken notice. Honeywell’s share price has risen sharply, from N3.90 in March 2024 to N12.40 in March 2025 — a gain of over 200%. As of the market close on May 30th, 2025, shares were trading at N21.00, representing a massive year-to-date return of 233.33%.
The company’s latest move includes adding new subsidiaries in Nigeria’s free trade zones and reducing its long-term debt. Its non-current borrowings dropped from N28.9 billion to N20.3 billion within the year. These steps are seen as part of a broader strategy to protect against future foreign exchange or import-related shocks.
While the board has not declared a dividend this year, likely to keep cash for expansion, the company’s shareholders’ fund rose by 65% to N37.4 billion — showing strong retained earnings and financial stability.
With signs pointing to lower inflation, a more stable naira, and better cost control, Honeywell looks well-positioned to keep growing in 2025. But analysts warn that risks remain, especially because the company still relies on dollar-denominated loans and imported inputs. A fresh wave of currency volatility or supply chain disruptions could affect the progress made.
Even so, Honeywell’s turnaround is a bright spot in a sector that has been struggling for years. If the positive trends hold, the company may soon resume dividend payments and increase investment in local operations.
