Page 11 - Honeywell Annual Report 2021 comm 10 09 v17a.cdr

Chairman’s Letter
Chairman’s Letter

Dear fellow Shareholders,

When the financial year 2020/2021 commenced, few
could have imagined what the year had in store for the
company and the world. From the Covid-19 pandemic
that unleashed both economic and health catastrophe,
to the #ENDSARS protests that led to significant
human and economic loss, the past twelve months
have been one of the most challenging in the
company's history. We responded by working
collaboratively towards the execution of our corporate
goals, guided by clear priorities; keeping our people
safe and motivated, ensuring supply of our food
products to consumers across the length and breadth
of the country, and caring for the communities where
we operate. Despite the inevitable disruption to our
business, we delivered a strong performance in very
challenging circumstances.

“ We achieved record production

and sales volumes, growing total
sales volume by 8% to over
400,000MT of high quality,
nutritious staple food products
“

Delivering Growth On All Fronts 36%. The revenue achievement of N109.5 billion is a
defining moment for the company as it fulfils the
2020 was a year of several record-breaking
ambition we set for ourselves five years ago to cross the
achievements for our company. This is a true
N100 billion turnover mark by the end of 2021 financial
testament to the dedication and tenacity of our
year. Sharper focus on volume-led competitive growth
employees, our diversified portfolio and the agility of
resulted in underlying operating profit growing by 38%
our supply chain. We achieved record production and
to N7.6 billion. Profit after tax increased by 73%
sales volumes, growing total sales volume by 8% to
year-on-year from N650m to N1.1 billion. These results
over 400,000MT of high quality, nutritious staple food
demonstrate the consistency of our company.
products. Growth was supported by strong momentum
in the consumer food category with Pasta growing at We continued to make progress in our portfolio
42% and Ball Foods, made up of Honeywell Semolina transformation towards becoming a highly valued foods
and Honeywell Wheatmeal growing by 21% over the business. We have now commenced a 10-year
prior year. evolutionary journey that will transition our beloved
company from Honeywell Flour Mills to Honeywell
We continued to make significant progress in
Foods. Our aim is to offer a broader portfolio of food
leveraging our scale at the Sagamu Pasta factory to
products manufactured from a wide range of raw
generate value for our shareholders. The factory now
materials drawn from local sources that offer good
directly employs about 450 people with 1,000 more
nutrition and contribute to a healthier and balanced life.
engaged in and around the community. The B2B flour
To this end, we have identified 5 attractive, growing and
category of the business also maintained good
scalable categories, that have both consumer and
momentum, gaining share and sustaining its quality
industrial food processing applications and provide us
rating in key markets across the country.
with potential for export. These categories will be
In line with record volume sales, we achieved record developed over the 10-year period, with one currently
revenue surpassing last financial year performance by in development. We are committed to investing in

12 HONEYWELL FLOUR MILLS | ANNUAL REPORT | 2021 World of Possibilities