Honeywell Flour Mills’ H1-2027 pre-tax profit jumps 1,115% to N31.40 billion as revenue rises 41%

Honeywell Flour Mills experienced a remarkable surge in pre-tax profit during the first half of 2027, with a staggering 1,115.17% increase to N31.40 billion. This impressive growth was driven by improved operating margins and enhanced segment performance. The company's revenue also saw a significant rise of 41.29%, reaching N233.79 billion compared to N165.47 billion in the same period last year.

These financial gains have now exceeded the N21.90 billion reported for the entire financial year ending March 2026, while post-tax profits surpassed N22.61 billion from a mere N1.62 billion the previous year.

The company's earnings improvement was backed by stronger gross profitability, reduced operating expenses, and a shift from net finance expense to net finance income. Despite a decline in foreign exchange gains to N811 million from N2.22 billion, the earnings improvement was not primarily attributed to currency gains. Honeywell's pre-tax margin expanded to roughly 13.4% from a mere 1.6%, and earnings per share climbed to N2.85 from N0.20.

The Sagamu operation, a key business unit, witnessed a notable turnaround, moving from operating losses to profitability. For the full year 2026, Honeywell's operating profit declined from N18.08 billion to N16.58 billion, although net finance income still contributed to pre-tax earnings. The recovery in earnings is now more strongly supported by the company's operating performance.

Total borrowings expanded by 60.92% to N52.27 billion from N32.48 billion at the end of March 2026, indicating a greater reliance on short-term financing. Honeywell's shares rose to N22.55 on October 30, reflecting a 25.28% gain during the month. Investors will closely monitor whether operating cash flow can support the company's increased capital expenditure and help reduce reliance on short-term borrowings, alongside the recovery of substantial intercompany loan receivables.