Honeywell Flour Mills Shows Resilience on NGX Amid Volatile Trading

News in brief:

-Honeywell Flour Mills closed last week at ₦23.2 per share on the NGX, capping a volatile but impressive year-to-date gain of over 200%.

-The company has bounced back strongly in 2025, posting a ₦21.39 billion pre-tax profit after a loss last year, though rising costs remain a key risk.

Honeywell Flour Mills Plc, a major player in Nigeria’s food and consumer goods industry, had a volatile run on the Nigerian Exchange (NGX) last week. Its share price closed at ₦23.2 per unit on September 4, representing a 2.88% gain from the previous session.

The stock has experienced significant price fluctuations this year, rising as high as ₦29.85 in July before retreating to ₦21.55 in late August. Despite these fluctuations, Honeywell has delivered an impressive performance in 2025, gaining over 200% year-to-date from a January opening of ₦7.61.

Financially, the company staged a remarkable turnaround in its full-year 2025 results. Honeywell posted a ₦21.39 billion pre-tax profit, compared to a ₦8.5 billion loss in 2024, with revenues almost doubling to ₦373.5 billion.

Who It Concerns

Investors: Shareholders who have stayed invested since the start of the year have enjoyed substantial capital appreciation. However, recent volatility highlights the risk of short-term price swings.

Consumers: As one of Nigeria’s leading producers of flour, pasta, and related products, Honeywell’s financial health directly influences food prices and availability in the market.

The broader food sector: Competitors and peers in the consumer goods space are closely watching Honeywell’s ability to manage rising input costs and foreign exchange volatility—issues that affect the entire industry.

What You Should Know

Earnings resilience: For Q2 2025, Honeywell recorded a profit after tax of ₦2.6 billion, up from ₦1.3 billion in the same quarter of 2024, despite revenues dropping by 16.2%.

Balance sheet strength: Retained earnings swung to a positive ₦7.8 billion, while total assets climbed to ₦167.9 billion, reflecting stronger fundamentals.

Key risks: Rising administrative costs (up 244% YoY) and cost of sales (+118.8% YoY) continue to weigh on margins. Investors should also watch for inflationary pressures and currency volatility.

Outlook: With a share price still trading far above its January levels, Honeywell remains a stock to watch. Its focus on cost optimisation and operational efficiency will be key to sustaining momentum in the second half of 2025.