Page 15 - Honeywell Annual Report 2021 comm 10 09 v17a.cdr

Managing Director’s Q&A
Chairman’s Letter

Olanrewaju Jaiyeola answers questions
on the company’s performance in the
financial year, impact of the pandemic,

new strategic direction and other
highlights.

How has the Covid-19 pandemic impacted
Honeywell Flour Mills?

It was indeed a tough year for everyone, with significant
effects on people’s health, national and global
economies. Our thoughts go out to all those that have
been impacted by the pandemic.

Expectedly, the company was not immune to the
effects of the pandemic. Both our local and foreign
supply chains were impacted by various lockdown
measures implemented to minimise the spread of the
virus. To mitigate this impact, we secured our supply
chains, increased our stock holding quantity of critical
items, and replaced imported manufacturing inputs
with locally available substitutes where possible. This
was particularly rewarding as it did not only ensure that
we continued to operate as smoothly as the conditions
permitted, but we were also able to collaborate with
local suppliers to develop their capacity to supply based
As you look back, how do you reflect on
on our quality requirements.
HFMP’s business performance in the financial
The combined effect of naira devaluation which led to year? What were the highlights for you?
significant increases in the cost of raw materials, the
Honeywell Flour Mills delivered a very strong
prevailing economic conditions and lower spending
performance during one of the most volatile periods of
power of consumers necessitated that increases in
our existence. The performance re-affirmed the
input costs could not be fully passed on to the
robustness of our strategy, the strength of our brands,
customer. This compelled us to accelerate
the resilience and ingenuity of our people in the face of
implementation of initiatives that improved our
unprecedented challenges. The Company achieved
operational efficiency and optimized cost.
several record feats; we broke our previous revenue
record achieved last financial year with an all-time high
As a food manufacturer in a critical industry, the health,
safety and well-being of our people have always been of N109.5 billion. The new record, a 36% increase from
our topmost priority as we were convinced that once the N80.4 billion achieved in FY2019/20, firmly puts the
business in the elite company of FMCGs in Nigeria.
our people are safe and motivated, the business will be
able to overcome any challenge that the pandemic
We achieved record production and sales volumes
brought. We implemented a wide range of protocols
driven by consumer food products which also achieved
across all our manufacturing locations to prevent the
record sales volume. Our investment in a new Pasta
occurrence and spread of the virus and thankfully, we
factory at Sagamu paid off greatly as we grew Pasta
did not have to shut down any of our locations due to
sales by over 40% to meet the generated demand for
the outbreak of the virus.
our Pasta products. The factory now directly employs

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