Tag: Honeywell Flour Mills Plc

  • Honeywell Flour Mills posts N16b gross profit

    Honeywell Flour Mills Plc (HFMP) announced N16.1 billion gross profit for the year ended March 31, 2018. The result was announced at the company’s ninth Annual General Meeting (AGM) held at the Civic Centre, Victoria Island, Lagos.

    The profit grew by 26 per cent from N12.7 billion in the previous year even as the profit after tax (PAT) stood at N4.4 billion.

    The company’s revenue grew by 34 per cent to N71.5 billion within the period under review, as against N53.2 billion recorded in the corresponding period of 2017.

    Speaking at the event, Chairman of the Board of Directors, Honeywell Flour Mills Plc, Oba Otudeko, said that in the period under review, the company was extremely focused on its main priority which was consistent delivery of profitable top line growth through high capacity utilization rates.

    He assured shareholders that in the new financial year, the company will remain committed to its vision to build market strong, highly desired and recognizable consumer brands that are well distributed across Nigeria.

    The Chairman however called on the Federal Government to address the challenges associated with roads in and around Tin Can and Apapa ports, which is affecting businesses operating from that axis. He encouraged the Federal Government to allow active participation of the private sector in the development and operation of ports in strategic regions of the country.

    Managing Director of HFMP, Lanre Jaiyeola, said the company successfully contended with macroeconomic challenges, including higher energy and transportation costs, through meticulous execution of its Continuous Improvement Strategy.

    He said the company implemented strategic projects to limit production losses, conserve energy, and to reduce downtime from equipment failure.

  • Honeywell assures customers of better service

    Managing Director, Honeywell Flour Mills Plc, Mr. Lanre Jaiyeola, has assured customers of better service and performance, saying the company has put in place processes to ensure that it meets and even surpasses their expectations.

    Jaiyeola said at the company’s annual customers’ forum in Lagos, that the new  pasta plant at Honeywell Food and Agro Allied Industrial Complex in Sagamu, Ogun State, which hosts two spaghetti lines and two macaroni lines with yearly capacity of about 140,000 metric tonnes, is to to meet customers’ demand.

    According to him, the plant, the largest in sub-Saharan Africa, will produce pasta using both wheat and local grains.

    Besides, he said the site would accommodate over 10 factories producing quality food items using local grains and tubers. They will also create thousands of jobs and boost food security.

    At the ceremony where Managing Director, Opeyemi Bakery, Mrs Opeyemi Raji, won in Business to Commercial Category, with all-expense-paid trip to Dubai, Jaiyeola said: “The complete satisfaction of our customers remains our priority and we are very cognizant of the roles that our dealers and distributors play as critical stakeholders and actors in the value chain.”

    He assured that they would further experience improved customer service, saying: “We are upgrading our technology platform to make transactions with customers pain-free and seamless, we are expanding our fleet cover to make sure that your orders are fulfilled in good time and most importantly, we are improving product quality to ensure that customers demand more and more of Honeywell’s products rather than competing brands.”

    Despite challenges, he assured that the economy would continue on the path of growth. “We expect that the economy will continue on the path of growth, despite the challenge of delay in the passage of the 2018 fiscal budget”.

  • Court stays proceedings in Honeywell’s suit against Ecobank

    The Federal High Court in Lagos has suspended the hearing of a N5.5billion debt case between Honeywell Flour Mills Plc, its sister companies and Ecobank Nigeria Limited.

    The companies are praying the court to hold that they are not indebted to Ecobank.

    Justice Mohammed Idris adjourned pending the determination of an interlocutory appeal filed by Ecobank.

    The bank appealed against the judge’s refusal to recuse himself from the case.

    When the case came up for continuation of defence, the bank’s lawyer, Mr Divine Agbua, told the judge that the Court of Appeal directed him to suspend further hearing.

    He said: “The appeal filed by the defendant came up for hearing at the Court of Appeal. Judgment was reserved. They made a directive to await their decision. May I apply that this case be adjourned sine dine (indefinitely). We shall notify your lordship upon delivery of judgment by the Court of Appeal.”

    Plaintiffs’ counsel Olabode Olanipekun confirmed that the Court of Appeal directed that the case be halted “out of respect for the hierarchy of courts.”

    “My application would be for the court to adjourn, not sine dine, but till a further date for us to report the outcome of the appeal,” he said.

    Ruling, Justice Idris said he would comply with the appellate court’s directive.

    He held: “I have listened to learned counsel. I have read the orders of the Court of Appeal. It is clear that the Court of Appeal had directed this court to await its judgment on this matter out of respect for the hierarchy of courts.

    “As a trial court, subordinate to the Court of Appeal, this court shall abide by the orders made by the Learned Law Lords of the Court of Appeal. This court shall, therefore, await the judgment of the Court of Appeal in this matter before further proceedings are continued herein.

    “In the circumstances, further proceedings in this matter are hereby adjourned pending the determination of the appeal. Either party shall be at liberty to apply for a hearing at the conclusion or the delivery of judgment by the Learned Law Lords of the Court of Appeal. This shall be the decision of the court,” the judge ruled.

    Ecobank had asked Justice Idris to recuse himself because it no longer had confidence in the judge to do justice in the case.

    The judge had refused the application, saying he would stick to his judicial oath in determining the case.

    His words: “It is always tempting for a judge against whom criticisms are made to say he would prefer not to hear further proceedings in which the critic is involved.

    “But it is important for a judge to resist the temptation to recuse himself simply because it’ll be comfortable to do so. The danger is that we’ll soon reach a position in which litigants were able to select judges to hear their cases simply by criticising all the judges that they do not want to hear their cases, whether the criticism is justified or not.

    “These issues are either for the appellate court or appealable issues and the defendant can exercise the right of appeal if it so desires. The application for the judge to recuse himself from this matter is most frivolous and it is refused,” he said.

    Ecobank subsequently appealed against the ruling.

    Read Also: Honeywell Flour Mills revenue hits N53.27b

     

     

  • Honeywell vs Ecobank: Judge refuses to disqualify self

    Honeywell vs Ecobank: Judge refuses to disqualify self

    …Won’t compel disclosure of story’s source

     

    Justice Mohammed Idris of the Federal High Court in Lagos Friday refused to disqualify himself from adjudicating a N5.5billion debt case between Honeywell Flour Mills Plc, its sister companies and Ecobank Nigeria Limited.

    Ecobank’ had written the Chief Judge, Justice Ibrahim Auta, asking that the case be re-assigned to another judge.

    The bank said it no longer had confidence in the judge to do justice.

    Praying the court to recuse himself from adjudicating the case, Ecobank’s lawyer Mr Kunle Ogunba (SAN) said his client had several reasons to believe that it would not get justice from the judge.

    “The court’s rules allow My Lord to transfer the case on his own. This is the first time we’re asking in this suit that the case be re-assigned,” Ogunba said.

    Ogunba said the application to transfer the case was not an attack on the judge’s integrity.

    “Since a party has shown that it does not harbour the confidence in your Lordship to handle the case dispassionately, your Lordship should wait on the CJ to respond or for My Lord to recuse himself so that parties can go before any other judge. This is our client’s grievance.

    “Their (plaintiffs’) conduct has been as if they own the court. It accords with the best judicial tenets for your Lordship to await the CJ’s decision or recuse himself,” Ogunba said.

    But Honeywell’s lawyer Bode Olanipekun argued that Ecobank’s application was a ploy to delay the case.

    “It’s an application to stymie, waylay and ambush proceedings. This type of application portends very grave danger to the judiciary,” he said.

    According to him, if Ecobank had any issues with the judge’s rulings, it ought to go on appeal.

    “This application is not based on any law. I urge your Lordship to dismiss the application,” Olanipekun added.

    Ruling, Justice idris refused to recuse himself from the case. He said he would stick to his judicial oath in determining the case.

    His words: “It is always tempting for a judge against whom criticisms are made to say he would prefer not to hear further proceedings in which the critic is involved.

    “But it is important for a judge to resist the temptation to recuse himself simply because it’ll be comfortable to do so. The danger is that we’ll soon reach a position in which litigants were able to select judges to hear their cases simply by criticising all the judges that they do not want to hear their cases, whether the criticism is justified or not.

    “These issues are either for the appellate court or appealable issues and the defendant can exercise the right of appeal if it so desires. The application for the judge to recuse himself from this matter is most frivolous and it is refused.

    “This court shall abide by the decision of the Honourable the Chief Judge whenever it is made. The application is refused and the matter shall proceed accordingly.”

    The judge earlier refused Olanipekun’s application to compel this reporter to step into th dock and disclose the source of his report on Ecobank’s letter to the CJ. The story, published in the Tuesday edition of this newspaper, was based on the letter.

    Olanipekun said: “We only got hint of that application by a publication in The Nation of November 15, 2016 in an article authored by one Joseph Jibueze. Coincidentally, he is in court. I take this issue very seriously.

    “I refer to the National Judicial Council (NJC) policy on complaints against judicial officers. Section 2.2 (4) to section 2.2 (9) bars any party from leaking any allegation of judicial misconduct against any judge in the press.

    “May I apply that Mr Jibueze comes into the dock to tell the court how he came about the story. Let him tell us the origin and how he came to know about it.”

    Ogunba, who spoke in the journalist’s defence, describing Olanipekun’s application as “bizarre”.

    He said: “This application is shocking. Mr Jibueze is not a party to this suit. On what basis will he enter the dock? Olanipekun has not cited any rule of procedure that allows that. Mr Jibueze did not report what was not in existence. I urge my Lord to discountenance my learned friend’s application.”

    In a short ruling, Justice Idris asked Mr Olanipekun to “drop” the application and to “leave Mr Jibueze out of it”.

    Justice Idris said: “I urge counsel to drop it. Let’s leave Mr Jibueze out of it. Let’s leave Mr Jibueze alone. Let’s leave Mr Jibueze and go to the substance. We’ll leave the press out of it. They’re doing their work.”

    The judge said his attention was also drawn to the story, but that he was not surprised by Ecobank’s letter to the CJ.

     

    He said: “I was asked: ‘have you read the report?’ I said: ‘What matter?’ They said: ‘Ecobank.’ I said I expected that they would write the DSS (Department of State Services). I expected that they would write the EFCC (Economic and Financial Crimes Commission).

    “I expected that they would write the ICPC (Independent Practices and other related offences Commission). I expected that there would be a sting operation in my house on Monday the 14th of November. I expected and I was waiting. And I am waiting.

     

    “I said it on the last date and I’m saying it today: Nobody, no matter who you are can threaten me. Nobody, no matter who you are can intimidate me. Idris can never be intimidated. Never! This is a court a court of law. You don’t do politics in Justice Idris’ court.

     

    “No matter how rich you are, you can’t influence Justice Idris – no matter how powerful you are. Keep your money in your pockets. Don’t come here with your money, I’ll not accept it. Keep your influence where they are, you cannot influence Justice Idris whoever you are. I’m saying it openly and I am declaring it.

     

    “Let’s go to the issues. I’m prepared. Justice idris is prepared. Ogunba SAN knows me very well in practice. So let’s leave the issue of Jibueze. Let’s go to the substance. We’ll leave the pressmen out of it. We do law in this court. Let’s talk law.”

     

    The judge adjourned until December 1 for hearing.

  • Ecobank asks CJ to re-assign Honeywell’s suit to new judge

    Ecobank Nigeria Limited has asked the Chief Judge of the Federal High Court, Justice Ibrahim Auta, to re-assign a suit filed against it by Honeywell Flour Mills Plc and its sister companies – Anchorage Leisures Limited and Silaom Global Services Limited – to another judge.

    The bank said it no longer had confidence that it would receive a fair justice from Justice Muhammed Idris who is currently handling the case.

    In a letter to the CJ by the bank’s Company Secretary/Chief Legal Counsel Denike Laoye and Kehinde Dawodu of its Legal and Regulatory Unit, the bank said various events led it to conclude that the case should be better handled by another judge.

    “The bank states unequivocally that it no longer has confidence that it will fairly and dispassionately receive justice in the subject case in light of the various events showing the court’s apparent bias against the bank and its retained firm of solicitors.

    “We, therefore, sincerely pray that the subject suit be re-assigned to any other judge of the Federal High Court, Lagos,” the bank wrote.

    The bank said while ruling on contempt a contempt charge filed by Honeywell and others, the judge allegedly threatened to the “deal with” the bank when the plaintiffs’ counsel properly invokes the court’s disciplinary jurisdiction.

    “In determining the initial committal processes, His Lordship Idris J, went beyond the possibility of innocence or the presumption of innocence as required by law,” the bank said.

    The bank said the judge, without hearing from it, held that a ruling delivered on July 1, in which he refused to grant the bank’s application for stay of proceedings, was still pending.

    Besides, Ecobank said the judge allegedly refused to countenance its appeal before the Supreme Court and a pending motion for stay of proceedings.

    “Our senior counsel informed the court that in deference to the hierarchy of courts, particularly since the issue at hand is jurisdiction, His Lordship ought to adjourn the trial pending the decision of the Supreme Court on the same issue, which appeal is ripe for hearing.

    “Despite all these, His Lordship relied on the plaintiff’s sole affidavit and the ruling of 1st July, 2016 to adjourn for definite hearing the subject suit, shutting the bank out from traversing the narration by the plaintiffs’ counsel,” the bank said.

     

  • Nigerite, Sterling Bank, Honeywell, others for 9jaSAFE awards

    Nigerite, Sterling Bank, Honeywell, others for 9jaSAFE awards

    • Seyi Law to host Nigeria’s prestigious safety award

    Nigeria Safety Awards for Excellence Hall of Fame (9jaSAFE) 2016 is set to award companies who have created a safe workplace for its employees.

    The Award, which will take place on 9th of September, 2016 at the Lagos Oriental Hotel, Lekki-Lagos is going to be hosted by Ace Comedian, Seyi Law.

    9jaSAFE Award organized by Safety Record Newspaper, publishers of Nigeria’s premiere Occupational Health, Safety and Environment newspaper, is a safety awards event aims at recognizing outstanding health, safety and environment (HSE) initiatives in Nigeria.

    The award ceremony, in its 2nd year, is not only focused on recognizing Nigerian organizations who have created a safe workplace environment for her workers, but also to highlight Nigerians who continue to promote safety within their immediate communities in Nigeria.

    According to a statement signed by Femi Da-silva, Managing Editor of Safety Record Newspapers, he said that the event is organized to honour organizations and individuals who have achieved excellence in their field by the introduction, development and improvement of health and safety standards within their work environment and communities.

    The statement reads: “The award, which have been endorsed by the Institute of Safety Professionals of Nigeria, Lagos State Safety Commission, and World Safety Organisation; others who endorsed the awards event are the Society of Occupational and Environmental Heath Physicians of Nigeria, American Society of Safety Engineers-Nigeria Chapter.

    “Supporting the award event for this year are Ikeja City Mall, Hybrid Group and Kevron Consulting Ltd.”

    Da-silva noted that they have instituted Nigeria Safety Award for Excellence as a humble contribution to advance the culture of safety in Nigeria, noting that several incidents that have resulted in disasters, including mishaps have become a common occurrence in the country, claiming the lives of many and destroying properties worth billions of Naira.

    According to him: “We have had trends of building collapse during and after constructions, ghastly motor accidents on our highways and waterways, and fire outbreaks across the states killing hundreds of people.

    “A passenger boat capsized in the waters around cross river state, killing about a hundred people. And on April 2 in Majidun River, Ikorodu in Lagos, a passenger boat hit a solid object in the water, upturning and throwing all its 28 commuters into the sea. The victims included some pregnant women and a Young couple whose wedding were just a few days away.

    “At different times, there have been reported cases of collapsed – completed or under constructed buildings, some of which had a high number of occupants when they caved in. The Lekki gardens building collapse in Lagos is the most recent.

    “In the case of fire, hundreds of lives have been killed and properties worth billions damaged over the last few years. Quite recently, about 70 people died in the Onitsha tanker fire that occurred after the fuel laden truck lost control as a result of brake failure. This perhaps could have been prevented, had the vehicle undergo necessary checks to ensure safety.

    “The consequence of the countless dangers complied above is the near absence of safety standards in most areas of public exposure in Nigeria today.”

    He revealed that Safety Record Newspaper has been in the vanguard of raising awareness and sensitization on safety matters in the country, hence, taking the lead in berthing the award in its second year running.

    This initiative has been adjudged by stakeholders in the country as the first recognized Nigeria award in Occupational health, safety and environment (HSE).

    “The award is open to any individual/organization committed to practicing health, safety and environment (HSE) managing at the workplace in Nigeria.

    “The award is an invaluable platform set up to endorse organization/individuals’ HSE practice and a means to celebrate success in keeping employee healthy and safe,” he informed.

    He added that the independent safety body would recognize outstanding performance initiatives of individuals towards fostering safety and environment initiative.

    The list of the finalists have been published on their website, and would be published in the second edition of the first ever Nigeria Safety Book of Record, which will be updated annually.

    According to the organizers of the award, they said that interested safety professionals in Nigeria can participate in the event by visiting the website.

    FrieslandCampina WAMCO Nigeria Plc, Sterling Bank Plc, Honeywell Flour Mills Plc, Ikeja Electric, Nigerite are among the organizations billed to be awarded at the second edition of the prestigious Nigerian safety award.

  • ‘Nigeria’s  food potential is huge’

    ‘Nigeria’s food potential is huge’

    Lanre Jaiyeola, Group Managing Director, Honeywell Flour Mills Plc, in this interview with Ibrahim Apekhade Yusuf, speaks on the giant strides recorded by the company thus far among other development. Excerpts:

    Journey so far

    The last financial year has been very challenging obviously because the entire nation has been facing challenges including the crash in crude oil prices in the international market coupled with the devaluation of the of the naira.

    Thus with other operational and infrastructural challenges it was difficult for the company to achieve its budget for last financial year.

    But having said that, I can say without any fear of contradiction that Honeywell has come a long way indeed. Honeywell started the commercial, production and sales business about 19-200metric tons per day, today we are mill operating a factory with product capacity of 2610 metric tons- that’s quite a lot of improvement in capacity if you look at it. We have future expansion programme. As I speak, we are embarking on yet another expansion of 500 per tons flour mill, we are also expanding our noodles and pasta capacity at various locations.

    Update on the Shagamu expansion factory

    At the end of the day it will become our food complex. By that I mean it is going to be one location where virtually all the food business of the Honeywell group will be concentrated. We are presently embarking on expansion project which would increase our production capacity from the current 210 metric tons per day to about 1000 metric tons per day.

    Development plan for Honeywell

    Our development plan is primarily to become the national food provider. We do not only want to play in the space of producing food for human but also producing for the animals. The Shagamu land which is 68 hectare land will offer us that opportunity. We intend to have the entire food business concentration in that location.

    Besides, during the first quarter of the year, we will be running Pasta and Noodles promotions. While the pasta promotion is targeted at retailers, the noodles promotion on the other hand is targeted at consumers.

    For the pasta trade promotion, we have included 1 free pack of Spaghetti in every carton of Honeywell Macaroni and Honeywell Spaghetti while for Noodles promotion, we are giving 15 percent extra noodles free in every pack of Honeywell Noodles.

    Our promotions are clearly communicated on the cartons and packaging films where feasible because we believe strongly in ethical practices and transparency in all we do. There is no raffle draw or lucky dip involved in these promotions. Whatever we have promised is either in the cartons already or inside each pack of Honeywell Pasta and Honeywell Noodles. It is a new dawn in our Marketing and Trade Marketing activities as we have re-strategised to serve you better.

    Our Commercial team (Sales and Marketing) will be closer to you now more than ever. Our Management Team will be coming around to see how we can serve you better and help your business grow. Our growth is tied to your growth and your growth is tied to our growth. We are in it to succeed together.

    Level of compliance with government directive on cassava flour

    I will say hundred percent because when the policy came into force, Honeywell embraced it whole heartedly, we demonstrated it by investing massively in various equipment, we must have invested close to a N1billion in various equipment in our existing mills in Apapa just to be able to include high quality cassava flour in a regular with the flour that we produce.

    Today, government has said we should include between three-five percent by the end of this financial year we are complying. Today, we are doing about between three-four percent and we hope to take this up to five percent by December this year. Not only that, Honeywell has also taken the opportunity that the government has provided to invest in high quality cassava milling equipment in the western part of the country.

    Impact of insecurity/insurgency and the Apapa traffic gridlock

    The Apapa gridlock affected tremendously not only us but every other company located in and around Apapa, I must say. But we are hopeful that with the stage of work on the new trailer park, we are all the trucks along the Oshodi-Apapa express road will soon be relocated into the park and that will free off the road. Thereafter we expect the government to move in and do some construction work on the road so that there can be free movement of vehicles. So, we are hopeful that this year will offer us another opportunity to be able to get our products out of the factory to our numerous customers across the nation

    Proposed ban on importation of flour

    The federal government did not plan to ban the importation of flour. All the federal government expects is for people to comply by patronising local produce like cassava flour, sorghum flour. As we speak, we’re not only working extensively on cassava but we have commenced a research and development initiative on sorghum flour. Some of our colleagues from Switzerland are already working on various ample of sorghum flour just to show that we can explore the possibility not only high quality cassava flour but also of high quality sorghum flour.

    Assessment of food processing in country

    We are not doing too badly of course there is always room for improvement and Honeywell put premium on quality control assurance the peak of food processing is to ensure that every food we produce from the factory meets international standards, that way it follows therefore that we must have in place a high level quality assurance team and I can confirm that we have this at the Honeywell flour company limited.

    Procurement of raw materials for instance is very poor we have to ensure that our raw materials are well-guided so that we can be sure of the raw materials we are putting into our food.

  • Honeywell to increase production to 1000 metric tons

    Honeywell to increase production to 1000 metric tons

    Honeywell Flour Mills Plc has hinted of plans to embark on expansion project that would increase its production capacity from the current 210 metric tons per day to about 1000 metric tons.

    The Managing Director of the company, Lanre Jaiyeola who stated this during the 2015 Annual Customers’ Forum in Lagos, at the weekend, said the company has since acquired a 68 hectare of land at Shagamu area of the Ogun State for smooth take off of the project.

    The event tagged: ‘Winning Together: Be the Best’, attracted major distributors of the company across the federation.

    According to him, when completed it would serve as one location where virtually all the food business of the company group would be concentrated adding it will become the company’s food complex.

    The company, he further noted, is embarking on expansion of 500 per ton flour mill and increasing noodles and pasta at various locations in the country.

    Jaiyeola said the company  will continue to support its customers in every area possible recognising the fact that they are a critical part of the business meaning they needed all the support they could get from the company to put its products in every nook and cranny of the country

    The development plan of the company is primarily to become the national food provider, he noted adding, “We do not only want to play in the space of producing food for human but also producing for the animals.”

    On the government directive on cassava policy, the Honeywell boss said the level of compliance exhibited by the company is encouraging.

    Jaiyeola recalled that when the new policy regime on cassava flour was mooted, the company embraced it wholeheartedly and demonstrated it by investing massively in various equipments.

    Specifically, he said the company invested close to N1billion in various equipments in the existing mills in the Lagos state.

    “Today, the government has said we should include between three-five percent by the end of this financial year.  Today, we are going between 3-4 percent and we hope to take this up to five percent by December this year.”

    He said the last financial year was very challenging with many issues that confronted the nation’s economy including the crash in crude oil prices in the international market which he said led to the devaluation of the of the naira.

    This, coupled with other operational and infrastructural challenges he said made it difficult for the company to achieve its budget for last financial year.

    He however informed that the company has line up lots of exciting marketing and trade marketing activities to help drive increased demand for the products by retailers and customers saying we are running these promotions so that more volume of our products could be sold.

    Echoing similar sentiments, the Group Chief Executive Officer of the company, Alan Palmer, said the company is committed to building the Nigerian economy and appealed to the government to put adequate infrastructure in place to drive economic development.