February 13,2018

Honey Bun Limited (HONBUN) for the three months ended December 31, 2017 reported total revenue of $322.83 million, a 3% or $10.38 million increase when compared with the $312.44 million reported for the corresponding period in 2016.

Cost of sales rose by 3% to total $178.87 million for the quarter relative to $173.80 million reported for the same period in 2016. As a result, gross profit increased 4% for the three months ended December 2017, to total $143.96 million relative to the $138.64 million recorded for the same period for the 206.

The company reported other loses of $323,500, a 156% or $197,000 increase when compared with the $126,340 loss booked in the same period for 2016. Finance income increased from $196,000 to total $314,000 for the period, a 60% increase year over year. As such, profit before expenses for the period increased 4% or $5.24 million to total $143.95 million.

Administrative expenses declined 1% for the period to total $60.16 million (2016: $60.84 million). Selling, distribution and promotion expense incurred by the company increased 53% or $17.61 million to close the period at $51.09 million (2016: $33.47 million). As such, total expenses for the period amounted to $111.24 million, an 18% increase relative to $94.31 million booked for the same period in 2016.

Finance costs totaled $1.29 million, up 16% compared to the prior year’s total of $1.11 million.

Pre-tax profits for the period amounted to $31.41 million, a 27% or $11.88 million decline relative to the $43.29 million reported for the corresponding period in 2016. HONBUN incurred tax expenses of $3.93 million for the 3 month period ended December 2017, relative to $5.40 million for same period in 2016.  Profit after taxation dropped 27% from $37.89 million for first quarter ended December 2016 to total $27.49 million for the first quarter in 2017.

Consequently, earnings per share for the quarter totaled $0.06 for the 3 months ended December 2017 relative to $0.08 for the same period of 2016. The twelve-month trailing EPS amounted to $0.18. The number of shares used in this calculation was 471,266,950 shares. Notably, the stock price for HONBUN closed the trading period on February 13, 2018, at JMD $5.17.

Balance Sheet at a glance:

As at December 2017, the company’s assets totalled $746.66 million, an increase of 16.76% compared to the $639.51 million reported as at December 2016. The growth was driven primarily by increases in ‘Investments,’ and ‘Intangible Assets’ to total $78.08 million and $2.44 million respectively.

Shareholders’ equity amounted to $573.32 million as at December 31, 2017 (2016: $509.16 million) resulting in a book value per share of $1.22 (2015: $1.08).

The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.