07-02-2019, 09:03 AM
Honeywell Flour Mills skips dividend as profit drops by N4.4b
[/url]![[Image: Honeywell-Logo-750x375.png]](https://thenationonlineng.net/wp-content/uploads/2019/07/Honeywell-Logo-750x375.png)
[url=https://thenationonlineng.net/wp-content/uploads/2019/07/Honeywell-Logo.png]
The board of directors of Honeywell Flour Mills Plc will not be recommending payment of dividend for the immediate past business year as the flour-milling company struggled with N4.4 billion decline in net profit.
A regulatory filing at the weekend indicated that the company will not be paying dividend for the year ended March 31, 2019. It had distributed 6.0 kobo per share as cash dividend to shareholders for the business year ended March 31, 2018.
Key extracts of the audited report and accounts of Honeywell Flour Mills for the year ended December 31, 2019 released at the weekend showed that net profit dropped by 98 per cent from N4.43 billion in 2018 to N68.4 million in 2019. Profit before tax had dropped by 88 per cent from N4.87 billion in 2018 to N607.8 million in 2019. Turnover however rose marginally by four per cent from N71.48 billion in 2018 to N74.41 billion in 2019. Earnings per share consequently declined from 55.82 kobo to 0.86 kobo per share.
The board of the company stated that it did not recommend dividend payment in order to conserve funds. Dr Oba Otudeko’s Siloam Global Services Limited holds the majority equity share of 75 per cent while First Bank of Nigeria Limited holds the second largest individual shareholding of 5.0 per cent.
Honeywell Flour Mills, which operates two factories in Apapa and Ikeja, had blamed the traffic gridlock at Apapa for increased costs and slowdown in business activities. It had noted that selling and distribution costs had grown in line with increased volumes and increased costs associated with transporting finished goods out of its plant at the Tin Can-Island Port, Apapa where there has been a constant traffic gridlock.
[/url]
![[Image: Honeywell-Logo-750x375.png]](https://thenationonlineng.net/wp-content/uploads/2019/07/Honeywell-Logo.png){kind=logo}
[url=https://thenationonlineng.net/wp-content/uploads/2019/07/Honeywell-Logo.png]
The board of directors of Honeywell Flour Mills Plc will not be recommending payment of dividend for the immediate past business year as the flour-milling company struggled with N4.4 billion decline in net profit.
A regulatory filing at the weekend indicated that the company will not be paying dividend for the year ended March 31, 2019. It had distributed 6.0 kobo per share as cash dividend to shareholders for the business year ended March 31, 2018.
Key extracts of the audited report and accounts of Honeywell Flour Mills for the year ended December 31, 2019 released at the weekend showed that net profit dropped by 98 per cent from N4.43 billion in 2018 to N68.4 million in 2019. Profit before tax had dropped by 88 per cent from N4.87 billion in 2018 to N607.8 million in 2019. Turnover however rose marginally by four per cent from N71.48 billion in 2018 to N74.41 billion in 2019. Earnings per share consequently declined from 55.82 kobo to 0.86 kobo per share.
The board of the company stated that it did not recommend dividend payment in order to conserve funds. Dr Oba Otudeko’s Siloam Global Services Limited holds the majority equity share of 75 per cent while First Bank of Nigeria Limited holds the second largest individual shareholding of 5.0 per cent.
Honeywell Flour Mills, which operates two factories in Apapa and Ikeja, had blamed the traffic gridlock at Apapa for increased costs and slowdown in business activities. It had noted that selling and distribution costs had grown in line with increased volumes and increased costs associated with transporting finished goods out of its plant at the Tin Can-Island Port, Apapa where there has been a constant traffic gridlock.