Honey Bun sweetens second-quarter profitsSunday, May 16, 2021
BAKED products manufacturer Honey Bun Limited, during its second quarter which ended in March, g rew its profits to $76.8 million — 77 per cent more than that achieved for the same period last year.
During the period revenues also increased by some 16 per cent to total $527 million.
“The improvement was attributable to a number of factors, including the introduction of new products such as the hot dog roll and cinnamon loaf,” the company said in its unaudited report published on the Jamaica Stock Exchange website late last week.
The company, which continues to grow sales locally and overseas despite the presence of the novel coronavirus pandemic, said that Easter bun sales during the past period also increased, accompanied by growth of some 48 per cent in export sales for the product when compared to last year.
“During the quarter the company launched its new sliced bun, which has been well received by customers for its added convenience,” the company stated in the report.
The baking company, in an attempt to further build out market shares in the competitive industry, last year introduced some new products including burger buns and also purchased new warehousing space adjacent its Retirement Road manufacturing complex. The company, which has not yet fully disclosed what will be done with the acquired space, said that it will make a decision concerning usage within the next few months.
For the consolidated six-month period, Honey Bun said it pumped some $69 million into capital expenditure, which was mainly used to upgrade vehicle fleet in order to service new routes and to acquire additional manufacturing equipment.
“This brought total property plant and equipment to $588.1 million,” the report stated.
The company, which has been big on the support of small businesses through its philanthropic arm, Honey Bun Foundation, in partnership with Digicel Foundation and others just last month launched a diagnostic tool, the GAPP APP, designed to better identify knowledge gaps among entrepreneurs and help them position their businesses for growth. The app is available for download in Apple's App Store and from Google's Play Store.
“The GAPP APP will give us a high level of where to go for help with training. It gives solutions as to who provides the support such as the JBDC (Jamaica Business Development Corporation) . It will provide directions for grants and finance such as the EXIM Bank and DBJ [Development Bank of Jamaica]. It will also provide e-solutions for those people who want to spend time online to close the gaps,” said Honey Bun CEO Michelle Chong during the virtual launch ceremony.
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