Honey Bun reports after-tax profit of $16.7 million for third quarter


Honey Bun reports after-tax profit of $16.7 million for third quarter

Business reporter

Wednesday, August 14, 2019

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JAMAICAN baking company Honey Bun Limited (HonBun) on Friday (August 9), reported unaudited after-tax profit of $16.7 million for the third quarter ended June, 30, 2019, a 71.8 per cent increase compared with the corresponding period last year.

According to Chief Executive Officer (CEO) Michelle Chong, in the company's report to shareholders, HonBun's third quarter's performance saw stronger performance relative to the same period last year.

The company's revenues of $394.4 million were up 19 per cent over prior year, due to increased capacity from the property plant and machinery upgrades while the operating expenses were $153.7 million, a 12 per cent increase compared with the corresponding period last year.

“In June, we introduced a new line of burger buns, the 'Shorty Burger Bun', packaged for the retail sales market. The product is doing well and we look forward to further build out of this line,” Chong said.

“We also launched new packaging on our primary products to give them a new look and feel, but the same deliciousness our customers have come to know and enjoy.”

Chong added that HonBun, in May of this year, launched its support for education and recognition of teachers islandwide with its 'Donuts for Teachers' campaign.

While total non-current assets of the company at the end of the period stood at $589.4 million, a $69.5 million increase over the same period last year, of this amount, $54.8 million was expected to spend on property plant and equipment.

According to the report, for the nine-month period, total revenues amounted to $1.17 billion, or 16 per cent over the prior year, while operating expenses of $421.9 million were up 15 per cent over prior year, due mainly to increased sales and marketing spend as well as staff training and development costs. Profit before tax for the nine-month period amounted to $144.5 million, an 80 per cent increase over the same period last year.

Chong added that the board of directors approved a dividend of $0.03 per share, payable on July 9, 2019, to shareholders on record at June 25, 2019.

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