May 15, 2024
Honey Bun Limited (HONBUN) for the six months ended March 31, 2024, reported a 14% increase in Revenue totaling $1.94 billion compared to $1.70 billion in the corresponding period last year. Revenue for the second quarter had a 13% increase to close at $994.64 million compared to $878.24 million for the comparable quarter of 2023.
Cost of Sales amounted to $1.03 billion (2023: $962.65 million), this represents an increase of 7% year over year. Consequently, gross profit increased by 23% to $904.63 million compared to $732.99 million for the six months ended March 31, 2023. The company booked gross profit of $469.34 million for the second quarter versus $375.35 million reported for the similar quarter of 2023.
Other losses for the six months amounted to $4.70 million, a 78% increase over the prior year.
Administrative Expenses increased by 18% to close at $380.48 million (2023: $323.10 million), while Selling, Distribution & Promotion Expenses increased by 23% from $243.47 million in 2023 to $298.67 million in the period under review. As a result, total operating expenses for the six months ended amounted to $679.14 million, a 20% increase relative to $566.57 million reported in 2023.
Profit from operations for the six months amounted to $220.79 million, a 29% increase relative to $171.32 million reported in 2023. Profit from operations for the second quarter amounted to $106.44 million (2023: $79.68 million).
Finance Income totalled $8.37 million, a 14% increase from the corresponding period last year. (2023: $7.34 million) while Finance Cost totalled $4.75 million (2023: $3.51 million).
Profit before Taxation for the six months amounted to $224.93 million, a 28% increase relative to $175.16 million reported in 2023. Profit before Taxation for the second quarter amounted to $108.22 million (2023: $81.62 million).
Taxation for the six months was $57.19 million (2023: $44.10 million). Net Profit for the six months amounted to $167.74 million, a 28% increase from the $131.06 million reported in 2023. For the second quarter, Net Profit was $81.24 million (2023: $61.77 million).
Consequently, Earnings Per Share for the six months amounted to $0.36 (2023: EPS: $0.28), while Earnings Per Share for the quarter totaled $0.17 (2023: EPS: $0.13). The twelve-month trailing EPS was $0.57, and the number of shares used in these calculations was 471,266,950.
Notably, HONBUN’s stock price closed the trading period on May 15, 2024, at a price of $7.39 with a corresponding P/E ratio of 12.96x.
Management highlighted, “We are pleased to announce that Honey Bun (1982) Limited on March 27, 2024, announced a billion-dollar expansion plan to meet the growing demand for our products locally and overseas. The expansion will result in the doubling of our capacity. The project is expected to take seven to ten months.”
Balance Sheet Highlights
The company’s assets totalled $1.94 billion (2023: $1.66 billion). The increase in assets resulted from a 39% uptick in ‘cash and cash equivalents’ closing at $544.85 million.
Shareholder’s equity was $1.42 billion (2023: $1.23 billion), representing a book value per share of $3.02 (2023: $2.62).
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