Brand Relaunch: Honeywell Flour Mills Makes Remarkable Strides In Capital Market, Hits 32% MTD In Early January
Flour Mills of Nigeria (FMN) has announced that shares of Honeywell Flour Mills Plc have climbed 32% month-to-date, making remarkable strides in the capital market. This makes it the fastest-growing consumer goods stock on the Nigerian Exchange so far this month.
The surge in shares follows FMN’s relaunch of the Honeywell brand in mid-December 2024. FMN holds a 71.69% stake in the company.
Commenting on the relaunch, FMN’s Managing Director (Food) Devlin Hainsworth said it was aimed at redefining and strengthening the brand’s presence in the market and improving the quality of its products.
His words, “The Honeywell brand offers improved quality noodles and pasta, while the Honeywell semo or wheat provides enhanced quality and adjusted pack sizes.”
He added that the new packaging reflects Nigeria’s culture and the brand’s history, with upgraded products offering better nutritional value and taste.
Following the relaunch, Honeywell Flour Mills Plc recorded gains in five of its last six trading sessions in early January, reflecting sustained investor interest.
In 2024, Honeywell Flour Mills recorded an 89.8% year-to-date gain on the Nigerian Exchange, supported by renewed bullish activity in the latter half of the year.
The stock opened at N3.32 in January, rising to N3.95 with a trading volume of 127 million shares. It declined to N3.00 by May before recovering in June, reaching N4 in August and N4.70 by September.
In the fourth quarter, the stock saw increased activity, with a notable rise in December that contributed over 30% to its annual performance, bringing the year-to-date gain to 89.75%.
Honeywell Flour Mills saw an uptick in its stock price likely due to a few developments: The company reported a 126% year-over-year increase in revenue, jumping from N79.4 billion to N179.5 billion for the six months ending September 30, 2024.
This growth was accompanied by a 186% rise in pre-tax profit, reaching N3.4 billion, compared to a loss of N3.9 billion the previous year. After the earnings report release on October 30, 2024, Honeywell’s shares closed at N4.73 in November.
In mid-December, Flour Mills of Nigeria (FMN), which holds a 71.69% stake in Honeywell, relaunched the Honeywell brand. This initiative sought to enhance market presence and product quality, introducing new packaging inspired by Nigerian culture.
Following the relaunch, Honeywell’s shares began to rise on December 16, breaking the N6 barrier and closing the month at N6.30.