Date: February 14, 2019
Honey Bun (1982) Limited (HONBUN) for the three months ended December 31, 2018 booked a 14% increase in revenue to $369.01 million, up from $322.83 million.
The Company’s cost of sales increased by 9% to $194.15 million (2017: $178.87 million) which consequently led to a 21% increase in gross profit to close at $174.87 million (2017: $143.96 million).
HONBUN reported other income of $1.82 million compared to other losses of $323,504 posted in the prior year. Finance income totaled $89,155, down by 72% compared to $314,292 reported twelve months earlier.
Administrative expenses rose by 20% to $72 million (2017: $60.16 million), while Selling, Distribution & Promotion expenses increased by 23% to $62.90 million (2017: $51.09 million). Total expenses for the period under review amounted to $134.89 million, 21% above the $111.25 million recorded for the prior year.
Profit from operations climbed 28% moving from $32.70 million in 2017 to $41.88 million for 2018. Finance costs surged by 71% to close at $2.21 million (2017: $1.29 million). Profit before taxation climbed 26% to $39.67 million compared to $31.41 million booked in 2017.
The company incurred taxes of $1.57 million (2017: $3.93 million), thus resulting in net profit after taxation of $38.10 million, a 39% increase relative to $27.49 million reported for the prior year’s corresponding period.
HONBUN noted that, “a reduction in the cost of raw materials and an improved production capacity contributed to the quarter’s performance.”
Consequently, Earnings per share (EPS) amounted to $0.08 (2017: $0.06) for the period. The trailing twelve-month EPS amounted to $0.21. The number of shares used in this calculation was 471,266,950 shares. HONBUN last traded on February 14, 2019 at $3.76.
Balance Sheet at a Glance:
Total Assets increased by 13% to close at $840.13 million as at December 31, 2018 (2017: $746.66 million). The increase in total assets was mainly due to a 26% increase in ‘Property, Plant and Equipment’ which closed the period at $489.62 million (2017: $428.69 million). ‘Cash and Cash Equivalents’ and ‘Investments’ also contributed to the overall growth which closed the period at $126.79 million (2017: $79.14 million) and $85.05 million (2017: $39.49 million), respectively. The overall movement in the asset base was tempered by a 19% decline in ‘Receivables’ to $74.68 million (2017: $92.60 million).
Shareholder’s Equity totaled $655.97 million (2017: $573.32 million) posted as at December 31, 2018. This translated in a book value of $1.39 relative to $1.22 in the prior year.
Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. 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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.