NIGERIA – Honeywell Flour Mills Plc has emerged as the best-performing consumer goods stock on the Nigerian Exchange so far in January 2025, with its shares climbing 32 percent month-to-date.
The rally follows the mid-December 2024 relaunch of the Honeywell brand by Flour Mills of Nigeria (FMN), which owns a 71.69 percent stake in the company.
The relaunch, spearheaded by FMN’s Managing Director (Food), Mr. Devlin Hainsworth, aims to redefine Honeywell’s market position by enhancing product quality and introducing culturally inspired packaging.
Since the relaunch on December 16, 2024, Honeywell shares have shown consistent gains, closing December at N6.30 and maintaining upward momentum in January.
The stock’s performance reflects sustained investor interest, with gains recorded in five of the first six trading sessions of the year.
2024: A year of turnaround
Honeywell Flour Mills ended 2024 with an 89.8 percent year-to-date gain on the Nigerian Exchange, buoyed by strong earnings and strategic initiatives in the latter half of the year.
Key financial highlights for the six months ending September 30, 2024, include a revenue surge by 126 percent year-over-year, reaching N179.5 billion (US$115.4M), up from N79.4 billion (US$51M) in the same period of 2023.
Pre-tax profit also rose to N3.4 billion (US$2.1M), a 186 percent improvement compared to a loss of N3.9 billion (US$2.5M) the previous year.
The company’s strong financial performance, reported on October 30, 2024, boosted investor confidence, with shares reaching N4.73 in November.
Flour Mills of Nigeria’s strategic exit
Flour Mills of Nigeria Plc, Honeywell’s parent company, has also made headlines following its delisting from the Nigerian Exchange on December 30, 2024.
The move followed an earlier announcement that Excelsior Shipping Company Limited, FMN’s majority shareholder, planned to acquire all minority shares.
Prior to its delisting, FMN shares closed at N81.80 (US$0.053) on December 13, 2024, reflecting a year-to-date gain of 147.5 percent.
Honeywell’s market strategy
The relaunch of Honeywell’s product line has focused on enhancing consumer appeal.
According to Mr. Hainsworth, the updated portfolio includes improved noodles, pasta, and semolina products, with adjusted packaging to portray Nigeria’s culture and heritage.
These upgrades aim to solidify the brand’s market position while providing better nutritional value and taste to consumers.
