Honey Bun profit up to $156 million
Jamaican baking company Honey Bun Limited (HONBUN), on Sunday last, posted a profit of $156 million for its financial year ended September 30, 2019, an increase of 45 per cent when compared with the previous corresponding period.
Executive chairman of Honey Bun Herbert Chong, in reporting to shareholders, said that the financial year saw double-digit growth in both top and bottom line performance, a direct result of expenditure in higher capacity machinery, and renewed push into the export market.
This, Chong added, enabled export revenues to grow by 40 per cent when compared with the prior year. This was also influenced by the company’s new Buccaneer Jamaica pocket-sized rum cakes, which is available in three flavours — original, coconut and fruit.
Revenues for the 2019 financial year grew by 17 per cent, relative to the same period last year, to close at $1.54 billion, while cash on hand for the period under review increased by $93.2 million, closing the year at $192.8 million.
HONBUN’s trade receivables fell by $12.2 million or 21 per cent when compared with the prior year to close at $46.3 million, a direct result of improved credit and customer relationship management.
Inventory on hand, consisting primarily of raw and packaging materials, grew by $20.7 million or 50 per cent, to close at $62.6 million, and was increased to support the baking company’s growing product demand.
During the 2019 financial year, HONBUN purchased $79.6 million worth of additional property, plant, and equipment.
At the end of the financial year, total non-current assets stood at $605.2 million, and of this amount $92 million represented investments in bonds, deposits, and various quoted securities, while long-term liabilities closed the year at $21.1 million or 11 per cent below prior year.
Shareholders’ equity closed at $740.5 million, an increase of 20 per cent over the prior year, while return on opening equity came in at 25 per cent, up from the 17 per cent recorded in the prior year.
Earnings per share for the period under review closed at $0.33, an increase compared with the $0.18 recorded in the prior corresponding period.
During the year the company paid shareholders a total of $28.3 million in dividends. This represented a $9.4 million or 50 per cent increase over the same period last year.