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The Nigeria-based flour-milling business Honeywell Flour Mill Plc, has proved to be a top performer on the Nigerian Exchange, as shares accrue impressive returns for shareholders in 2021. The company belongs to the country’s multimillionaire industrialist Obafoluke Otudeko.
After a review of the company’s performance on the Nigerian bourse, findings by Billionaires.Africa revealed that Honeywell’s shares increased from N1.20 ($0.00292) on Dec. 31, 2020 to N3.94 ($0.00960) as of the time of the drafting of this report.
The surge in the company’s shares led to a 228-percent gain for shareholders since the start of the year.
With the price appreciation, Honeywell’s market capitalization increased from N9.52 billion ($23.18 million) at the start of the year to N31.24 billion ($76.11 million) at the time of the drafting of this report.
This represents a N21.73-billion ($52.93 million) growth in market value between Dec. 31, 2020 and Sept. 30.
A $5,000 investment in Honeywell in early 2021 is worth $16,400 today
Investors with access to Honeywell’s shares on the Nigerian Exchange would have earned a 228-percent gain since the start of the year if they had purchased the miller’s shares in January 2021.
This suggests that a $5,000 (N2.05 million) investment in Honeywell Flour Mills at the start of the year is now valued at $16,400 (N6.74 million), which is more than three times the initial investment.
The multimillionaire industrialist derives a total wealth of N20.86 billion ($50.82 million) from his 70-percent stake in the flour milling company. He pocketed a dividend of N370 million ($901,200) from his stake on Sept. 3.
What’s worth knowing about Honeywell Flour Mills
Honeywell Flour Mills has grown into a key player in the Nigerian agro-allied industry through its diversified product offerings, including Honeywell Semolina, Honeywell Noodles and Honeywell Pasta.
The company has a wheat storage capacity of 72,900 metric tonnes, while its finished products warehouse can hold about 100,000 bags containing 50 kilograms of flour.
At the end of its 2020 financial year, the miller posted a profit of $2.7 million (N1.1 billion), 76-percent more than the previous year’s figures.
Sustained growth in the demand for pasta products, wheat and semolina in the first half of its current financial year triggered a 233-percent growth in profit from N45 million ($109,356) to N150 million ($364,521).
The growth in profit was delivered by cost-optimization strategies and a 25-percent increase in revenue from N26.4 billion ($64.16 million) to N33.06 billion ($80.34 million).
