Honeywell Flour Mills Posts ₦22.6bn Half-Year Profit as Investors Weigh Debt Risks
Honeywell Flour Mills reported a strong turnaround for the six months ended 30 September 2026. Revenue rose 41% to ₦233.8 billion, while profit after tax climbed 1,296% to ₦22.6 billion. Earnings per share increased to 285.09 kobo from 20.42 kobo. The company’s cash balance more than doubled to ₦26.2 billion, while total assets rose to ₦294.4 billion. It also paid ₦1.6 billion in dividends and recorded improved operating cash flow, helped by stronger margins, positive net finance income and contributions from its Shagamu free-trade-zone operations. However, investors may want more clarity on ₦89.7 billion in short-term loans receivable, significant related-party balances and the rise in short-term borrowings to ₦28.2 billion. The company’s 14.46% free float also remains below the Nigerian Exchange Main Board’s 20% requirement, although it meets the alternative value test. The results point to a major recovery, but the next few quarters will show whether the earnings growth and improved cash position can be sustained.
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