January 3, 2024

Honey Bun Limited (HONBUN) for the year ended September 30, 2023, reported a 16% increase in revenue totalling $3.41 billion compared to $2.95 billion in the corresponding period last year. Revenue for the fourth quarter had an 8% increase to close at $851.01 million compared to $790.50 million for the comparable quarter of 2022.

Cost of sales amounted to $1.94 billion (2022: $1.78 billion), this represents an increase of 9% year over year. Consequently, gross profit increased by 26% to $1.48 billion compared to $1.18 billion for the year ended September 30, 2022. The company booked gross profit of $356.27 million for the fourth quarter versus $320.38 million reported for the similar quarter of 2022.

Administrative expenses increased by 25% to close at $664.56 million (2022: $531.03 million), while selling and distribution expenses increased by 27% from $408.06 million in 2022 to $518.28 million in the period under review. Impairment losses on financial assets amounted to $21.47 million relative to impairment gains of 7.54 million reported in 2022.

Profit from operations for the year ended September 30, 2023, amounted to $276.92 million, a 12% increase relative to $246.80 million reported in 2022. Profit from operations for the fourth quarter amounted to $13.12 million (2022: $71.04 million).

Finance income increased by 29% to total $16.18 million (2022: $12.56 million), while finance costs totalled $7.85 million, a 141% increase from the $3.26 million booked in 2022. The increase in finance costs was primarily due to lease interest, which grew by 203%, from $2.37 million in 2022 to $7.21 million in 2023.

Profit before taxation for the year ended September 30, 2023, amounted to $284.45 million, a 12% increase relative to $254.44 million reported in 2022. Profit before taxation for the fourth quarter amounted to $13.82 million (2022: $70.15 million).

Taxation for the year ended September 30, 2023, had a 3% decrease to reach $52.36 million (2022: $50.96 million). Net profit for the year amounted to $232.09 million, a 14% increase from the $203.49 million reported in 2022. For the fourth quarter, net profit was $30.14 million (2022: $65.41 million).

Earnings per share (EPS) for the year amounted to $0.49 (2022: $0.43), while EPS for the quarter totalled $0.06 (2022: EPS: $0.14). The number of shares used in these calculations was 471,266,950.

Notably, HONBUN’s stock price closed the trading period on January 2, 2024, at a price of $6.40 with a corresponding P/E ratio of 13.00x.

Balance Sheet Highlights:

The company’s assets totalled $1.74 billion (2022: $1.53 billion). The growth in the company’s asset base was primarily due to a 34% increase in cash and cash equivalents, which amounted to $464.78 million (2022: $346.92 million), followed by an 11% increase in property, plant and equipment, which totalled $735.78 million (2022: $665.71 million).

Shareholder’s equity was $1.32 billion (2022: $1.16 billion), representing a book value per share of $2.79 (2022: $2.46).

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