Flour Mills Subsidiary, Honeywell Losses N2.4bn Over High Wheat, Diesel Cost

Honeywell, the new subsidiary of Flour Mills Nigeria, has lost N2.4bn due to high cost of inputs, the company said on Tuesday.

The company said revenue rose by 23 per cent to N40.6bn compared to the N33bn recorded in the corresponding quarter of 2022.

But it declared a loss of N2.4bn, down from the N150m profit in the first quarter of 2022.

Honewell became part of Flour Mills of Nigeria Group after it was acquired in May, 2022.

According to the group, the performance reflects the unprecedented socio-economic environment and global inflationary pressure.

“These market pressures led to incessant increase in input costs, particularly of wheat and diesel which pushed up prices in the company’s products relative to locally produced substitutes,” the company said.

Nassib Raffoul, the Managing Director, Honeywell believes in the next quarter, the company would post a more positive result.

“We are deploying measures to cushion the effect of the exacerbating input prices while also strengthening and expanding our business portfolio by accessing new markets and driving margin improvement,” said Raffoul.