February 14, 2022
Honey Bun (1982) Limited (HONBUN) for the three months ended December 31, 2021 booked a 44% increase in revenue to $664.70 million, up from $461.32 million reported twelve months earlier. HONBUN noted, “Our Shorty Bread products have continued to be well received by our customers and significantly contributed to sales increase.”
The Company’s cost of sales increased by 64% to $400.11 million (2020: $243.26 million). This consequently led to a 21% increase in gross profit to close at $264.59 million (2020: $218.06 million). According to the company, “The company lost 4.7% in margins due to significant price increases on all inputs, supply shortage and shipping delays and costs.”
HONBUN reported other gains of $7.32 million compared to other loss of $1.01 million posted in the prior year. As a result, profit before expenses closed at $271.91 million (2020: $217.04 million).
Administrative expenses rose by 23% to $132.07 million (2020: $107.26 million), while Selling, Distribution & Promotion expenses increased by 17% to $80.60 million (2020: $68.78 million). Total expenses for the period under review amounted to $212.66 million, 21% above the $176.04 million recorded for the prior year.
Profit from operations rose 44% moving from $41 million in 2020 to $59.24 million for 2021. Finance costs increased by 89% to close at $3.38 million (2020: $1.79 million). Profit before taxation totalled $56.63 million compared to $39.74 million booked in 2020.
The company incurred taxes of $11.12 million (2020: $4.99 million), thus resulting in net profit after taxation of $45.51 million, a 31% increase relative to the $34.75 million reported for the prior year’s corresponding period.
Consequently, Earnings per share (EPS) amounted to $0.10 (2020: $0.07) for the period. The trailing twelve-month EPS amounted to $0.49. The number of shares used in this calculation was 471,266,950 shares. HONBUN last traded on February 11, 2022 at $9.81 with a corresponding P/E of 20.15 times.
HonBun stated, “In our continued focus on improving manufacturing technologies and expanding our distribution network, the quarter saw the company investing an additional $35.5 million in property plant and equipment and intangible assets. This was mainly for additional distribution vehicles and software/business intelligence upgrades.”
Balance Sheet at a Glance:
Total Assets increased by 25% to close at $1.37 billion as at December 31, 2021 (2020: $1.10 billion). The increase in total assets was mainly due to a 40% increase in ‘Cash and cash equivalents’ which closed the period at $408.18 million (2020: $292.01 million).
Shareholder’s Equity totaled $1.07 billion (2020: $904.31 million) posted as at December 31, 2021. This translated in a book value of $2.28 relative to $1.92 in the prior year.
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