On October 20, 2009, Honeywell Flour Mills Plc (HFMP) debuted on the Nigerian Stock Exchange at a share price of N8.50. Six years later, the stock plummeted to N2.72, marking a 68 per cent decline from its initial listing price.
HFMP hit a new all-time low of N0.83 on March 26, 2020. But since then, the company has made a remarkable comeback. In 2025, the stock surged to a record high of N23 on May 29, representing an almost 28-fold increase from its 2020 low.
After opening the year at N6.92, HFMP has posted a 265 percent year-to-date gain, ranking as the second-best performing stock on the exchange. The key question circulating among investors now is: What’s behind Honeywell’s pump?
A primary factor is the delisting of Flour Mills of Nigeria (FMN), HFMP’s parent company. Following the suspension of FMN’s shares on December 16, investor sentiment swiftly shifted from the parent to its listed subsidiaries.
Between January 1 and December 13, 2024, HFMP gained 39 percent. But from December 16 to year-end, it jumped another 37 percent. In January 2025 alone, the stock rallied 52 percent as investors continued rotating their exposure to HFMP. Similar bullish activity has been seen in Northern Nigeria Flour Mills (NNFM), another FMN subsidiary, which has gained 216 percent year-to-date and now trades at an all-time high of N138.90.
Read also: FG targets 1m jobs, $1bn investment with revived talent exports programme
Market insiders suggest that FMN’s absence from the exchange has turned Honeywell into a proxy for investor sentiment toward the group. For instance, following FMN’s April 28 announcement of its participation in OmniRetail’s $20 million funding round, HFMP rose by 7 percent the very next day.
Still, fundamentals are playing an equally strong role in fueling investor confidence. For the nine months ended December 31, 2024, HFMP posted a net profit of N8.75 billion, its highest ever for nine months. Notably, FY 2025 marks its first profitable year since FMN’s acquisition, placing the company on track to issue its first dividend since 2021. However, with a current price-to-earnings ratio of 20.91x, investors are betting on more than income statements.
Signs of operational expansion further bolster bullish expectations. Sources within the company confirm that HFMP is expanding its pasta factory in Shagamu. Since the FMN takeover, the pasta line has evolved into a major revenue driver.
A market dealer told BusinessDay that based on the proposed expansion, some investors are eyeing the stock to “more than double” its current levels.
FMN notes that it is coming back to the exchange when it concludes its corporate restructuring. Basically, this restructuring involves consolidating FMN’s 22 business units into five key subsidiaries, focusing on high-growth areas such as sugar and food production. It is yet to be seen how this consolidation effort will involve the already listed Honeywell Flour Mill and NNFM.
