November 30, 2021
Honey Bun (1982) Limited (HONBUN), booked a 28% increase in revenue to $2.15 billion, up from $1.67 billion reported a year ago. For the fourth quarter, revenue climbed by 37% totaling $590.32 million (2020: $431.38 million).
The Company booked a 28% increase in cost of sales to $1.12 billion (2020: $875.50 million) which consequently led to a 28% increase in gross profit, to close at $1.02 billion (2020: $799.27 million). For the quarter, gross profit recorded a 36% rise amounting to $270.96 million compared to $199.24 million in the prior year’s corresponding quarter.
HONBUN reported other income of $4.78 million, a $4.72 million decline relative to the $9.50 million posted in the prior year.
Administrative expenses rose by 20% to $402.05 million (2020: $333.75 million), while Selling, Distribution & Promotion expenses increased by 19% to $348.07 million (2020: $292.48 million). Total expenses for the year end amounted to $750.12 million, 20% above the $626.23 million recorded for the prior year. For the fourth quarter, total expenses increased by 30% to $207.22 million (2020: $159.36 million).
Impairment gain on financial assets amounted to $8.27 million relative to a gain of $11.75 million booked twelve months earlier.
Profit from operations expanded by 47% from $194.29 million in 2020 to $285.12 million for the year in review. Finance income totaled $5.77 million, up by 44% compared to $4.02 million reported twelve months earlier. While finance costs contracted by 17% to close at $1.56 million (2020: $1.89 million).
Increase in value of investments classified as fair value through profit or loss amounted $872,524, relative to a depreciation amount of $5.39 million recorded twelve months earlier.
As such, profit before taxation increased by 52% to $290.20 million compared to $191.04 million booked in 2020. Profit before taxation for the fourth quarter amounted to $80.85 million (2020: $60.63 million).
The Company incurred taxes of $71.51 million (2020: $24.29 million), thus resulting in Net profit after taxation of $218.69 million, a 31% increase relative to $166.75 million reported for the prior year’s corresponding period. For the quarter, Net profit for the quarter fell to $42.22 million compared to $54.08 million recorded for the corresponding quarter of 2020.
Total comprehensive income for the year amounted to $218.69 million relative to $166.75 million in 2020.
Consequently, Earnings per share (EPS) amounted to $0.46 (2020: $0.35) for the year end, while for the fourth quarter the EPS totaled $0.09 (2020: $0.11). The number of shares used in this calculation was 471,266,950 shares. HONBUN last traded on November 29, 2021 at $10.02 with a corresponding P/E ratio of 21.59 times.
Balance Sheet at a Glance:
Total Assets increased by 24% to close at $1.33 billion as at September 30, 2021 (2020: $1.07 billion). The increase in total assets was mainly due to a 36% increase in ‘Cash and Cash Equivalents’ amounting to $404.25 million (2020: $296.98 million). ‘Inventory’ also contributed to the increase, closing at $121.40 million (2020: $71.27 million).
Shareholder’s Equity totaled $1.03 billion (2020: $869.56 million) posted as at September 30, 2021. This translated in a book value of $2.18 relative to $1.85 in the prior year.
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -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.