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The equity stake of Nigerian multimillionaire Obafoluke Otudeko in Honeywell Flour Mills Plc has surged by $3.6 million since the start of June.
The gains are linked to the recent rise in the flour miller’s share price on the Nigerian Stock Exchange, as investors accumulate additional stakes in the company in reaction to a 73-percent growth in its earnings in the 2020 financial year.
Honeywell Flour Mills is a leading player in the Nigerian flour milling business and agro-allied industry. The company has grown into a key player in the flour milling segment through its diversified product offerings.
The company, in its audited results for the year ending March 2021, disclosed that its revenue for the year increased by 36.2 percent from $195.3 million (N80.5 billion) in 2019 to $265.7 million (N109.5 billion) in 2020 due to increased demand for pasta and other food items in 2020.
The rise in revenue consolidated the miller’s earning power in 2020, as its cost optimization strategy boosted earnings to $2.7 million (N1.13 billion), a 73-percent improvement from a declared profit of 1.6 million (N650.5 million) last year.
In reaction to this impressive financial performance, the shares of Honeywell Flour Mills on the Nigerian bourse surged by 25 percent, from $0.0027 (N1.13) per share on June 1 to $0.0034 (N1.41) per share as of press time, 12 pm (UTC+1), June 18.
Otudeko is the founder of Honeywell Group. The conglomerate operates in food and agriculture, telecom and infrastructure, real estate and financial services sectors.
The business magnate holds an equity stake of 5,294,363,565 ordinary shares in the company indirectly through Siloam Global Services Limited.
The market value of his stake has increased from $14.50 million (N5.98 billion) on June 1 to $18.10 million (N7.46 billion) as of press time. This translates to a market value gain of about $3.6 million (1.48 billion) for Otudeko.
