Honeywell Flour Mills Surges By 32% MTD In Early January

Shares of Honeywell Flour Mills Plc have risen by 32 percent month-to-date (MTD), making it the top-performing consumer goods stock on the Nigerian Exchange in early January.

This remarkable growth follows the brand relaunch led by Flour Mills of Nigeria (FMN), which holds a 71.69 percent stake in Honeywell. The relaunch, introduced in mid-December 2024, was aimed at redefining the Honeywell brand and bolstering its market presence.

According to Mr. Devlin Hainsworth, Managing Director (Food) at FMN, the relaunch introduced upgraded products with improved quality and packaging inspired by Nigerian culture. Since the relaunch, Honeywell Flour Mills has experienced sustained investor interest, recording gains in five out of six trading sessions in early January.

In 2024, Honeywell Flour Mills achieved an 89.8 percent year-to-date gain on the Nigerian Exchange, supported by strong trading activity in the latter part of the year. The stock began the year at ₦3.32 and reached ₦3.95 with a trading volume of 127 million shares before dipping to ₦3.00 in May. It recovered steadily, rising to ₦4 in August and ₦4.70 by September. The fourth quarter was particularly robust, with December alone contributing over 30 percent to the year’s performance, as the stock closed the year at ₦6.30.

The company’s impressive performance can be attributed to several factors. Honeywell Flour Mills reported a significant improvement in financial results for the six months ending September 30, 2024. Revenue grew by 126 percent year-over-year, increasing from ₦79.4 billion to ₦179.5 billion, while pre-tax profit surged by 186 percent to ₦3.4 billion, a major turnaround from a ₦3.9 billion loss in the previous year. These strong financials fuelled investor confidence, with the stock price rising to ₦4.73 by November following the earnings report.

The relaunch of the Honeywell brand in December further boosted market sentiment. The company introduced enhanced noodles, pasta, semo, and wheat products, which offer better nutritional value and taste. The culturally inspired packaging and adjusted pack sizes were designed to meet evolving consumer preferences. The relaunch drove the stock past the ₦6 mark by mid-December, sustaining the rally into January.

While Honeywell Flour Mills recorded impressive growth, its parent company, Flour Mills of Nigeria, exited the Nigerian Exchange in December 2024. This followed a proposal by its majority shareholder, Excelsior Shipping Company Limited, to acquire all minority-held shares. Flour Mills’ shares last traded on December 13, 2024, at ₦81.80, closing the year with a 147.5 percent year-to-date performance.

Honeywell Flour Mills continues to benefit from its revitalised brand and robust financial performance, cementing its position as a standout performer in the Nigerian consumer goods sector.