Lessons Nigerian Businesses Can Learn From Honeywell Flour Mills’ 2021 Financial Results
2020 was a rough year for most businesses around the world. However, even in the middle of a global pandemic, some still managed to achieve excellent results. One of such organisations is Honeywell Flour Mills Plc, a leading food manufacturer in Nigeria. Despite the COVID-19 pandemic, the company generated ₦109.5 billion in revenue for the 2021 financial year, which is its highest ever.
With this enviable achievement, Honeywell joins the exclusive club of fast-moving consumer goods (FMCG) companies in Nigeria to have hit the N100 billion mark.
Here are seven lessons Nigerian businesses can learn from Honeywell Flour Mills Plc FY 2021 financial results:
- Master the intricacies of your industry
To get the outstanding results it did, Honeywell Flour Mills put a lot of work into mastering the intricacies of the local food manufacturing sector. By figuring out how to navigate industry problems ranging from logistics challenges to high production costs, the company was able to develop the required solutions.
The company’s understanding of the market contributed to its increased profit after-tax figure, up 73% in 2021.
The company recently launched the Honeywell Spaghetti Mini pack
2. Study your customers’ needs and meet them
Last year, the pandemic restricted movement across the country, which meant many people had to rely on staple foods with longer shelf life, like noodles and pasta. Recognising the needs of their customers, Honeywell Flour Mills had focused on increased production capacity at its factories.
This decision paid off with its new world-class pasta factory in Sagamu, Ogun State, increasing pasta sales by 42%. The products from this factory alone contributed over ₦19 billion to the company’s overall revenue. The factories in Apapa and Ikeja generated over ₦90 billion.
3. Invest in human capital
Despite the pandemic, Honeywell’s factories employed more people in the year ended March 31, 2021, than in the previous year. More good hands mean more products. More products mean more sales.
4. Make well-being of employees a priority
During the heat of the pandemic, Honeywell Flour Mills made sure to prioritise its employees’ health and safety. The company took measures to minimise the risk of contamination and ensured its products were manufactured with strict hygienic standards.
Its facilities constantly underwent deep cleaning, disinfection procedures, and fumigation exercises. The employees received personal hygiene and PPE items. They also practised social distancing and were continually sensitised about the situation.
By keeping the staff safe, the company was able to keep operations running smoothly, which then had a positive impact on its financial results.
5. Focus on operational efficiency
By constantly seeking to improve operational efficiency and deploying smart cost optimisation strategies, the company cut down its selling and distribution expenses by 8%.
6. Take advantage of modern technological solutions
Last year, the company made some bold investments in technology by upgrading its Enterprise Resource Planning System (ERP) and comprehensively computerising its internal business processes, systems, and procedures.
These changes helped with growth, efficiency and cost-saving, all of which positively affected the company’s financial results.
7. Get your product as close to consumers as possible
Honeywell prioritised retail distribution and product penetration which made it easy for consumers to access their products all over Nigeria and this had a positive impact on product availability. Improving product availability to consumers, which is a key success factor for the business-to-consumer trade helped the company hit its ₦100 billion revenue mark, the highest ever in its 23-year history.
