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.
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