HONBUN reports 52% increase in first quarter net profit

February 15, 2023

Honey Bun (1982) Limited, for the quarter ended December 31, 2022, recorded a 23% increase in revenue to total $817.40 million (2021: $664.70 million).

Other gains for the first three months amounted to $703,150 (2021: $7.32 million). As such, gross profit amounted to $357.64 million relative to $264.59 million reported in 2021.

Administrative expenses increased by 31% to $156.53 million (2021: $119.15 million). Selling and promotional expense increased 14% from $96.55 million in 2021 to $110.16 million for the period under review. Thus, total operating expenses increased by 24%.

Consequently, this resulted in profit from operations of $91.65 million, this compares with the operating profit of $56.21 million reported for the corresponding quarter for prior year.

The company reported finance income of $3.41 million for the quarter (2021: $767,961). Finance cost & policy expenses amounted to $1.52 million compared to $345,066 million reported in 2021’s corresponding period.

Profit before taxation amounted to $93.53 million for the first quarter ended December 31, 2022. This compares $56.63 million booked for the prior corresponding quarter. Net profit totaled $69.29 million for the period, relative to $45.51 million reported in 2021.

Earnings per stock unit for the quarter amounted to $0.15 (2021: EPS $0.10). The trailing EPS is $0.48. The number of shares used in the calculations is 471,266,950. HONBUN last traded on February 14, 2023 at $7.06 with a corresponding P/E of 14.64 times.

Balance Sheet at a Glance:

As at December 31, 2022, total assets rose by 20% to $1.65 billion (2021: $1.37 billion). This increase was primarily driven by “Right-of-Use” which amounted to $60.20 million (2021: $2.58 million). “Inventories” increased by 78% to close the quarter at $217.67 million relative to $121.99 million reported the prior corresponding period and “Receivables” increased by 64% to close the quarter at $198.51 million relative to $121.03 million as at December 31, 2021.

Shareholders’ equity as at December 31, 2022, amounted to $1.23 billion (2021: $1.07 billion) resulting in a book value per share of $2.61 (2021: $2.28).


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