November 30, 2022
Honey Bun (1982) Limited (HONBUN), booked a 38% increase in revenue to $2.95 billion, up from $2.15 billion reported a year ago. For the fourth quarter, revenue climbed by 34% totaling $790.50 million (2021: $590.32 million).
The Company booked a 58% increase in cost of sales to $1.78 billion (2021: $1.12 billion) which consequently led to a 15% increase in gross profit, to close at $1.18 billion (2021: $1.02 billion). For the quarter, gross profit recorded a 18% rise amounting to $320.38 million compared to $270.96 million in the prior year’s corresponding quarter.
HONBUN reported other income of $2.54 million, a $2.24 million decline relative to the $4.78 million posted in the prior year.
Administrative expenses rose by 32% to $531.03 million (2021: $402.05 million), while Selling, Distribution & Promotion expenses increased by 17% to $408.06 million (2021: $348.07 million). Total expenses for the year end amounted to $939.08 million, 25% above the $750.12 million recorded for the prior year. For the fourth quarter, total expenses increased by 29% to $267.39 million (2021: $207.22 million).
Impairment gain on financial assets amounted to $7.54 million relative to a gain of $8.27 million booked twelve months earlier.
Profit from operations declined by 13% from $285.12 million in 2021 to $246.80 million for the year in review. Finance income totaled $12.56 million, up by118% compared to $5.77 million reported twelve months earlier. While finance costs increased by 108% to close at $3.26 million (2021: $1.56 million).
Decrease in value of investments classified as fair value through profit or loss amounted $1.66 million, relative to an increase of $872,524 recorded twelve months earlier.
As such, profit before taxation declined by 12% to $254.44 million compared to $290.20 million booked in 2021. Profit before taxation for the fourth quarter amounted to $70.15 million (2021: $80.85 million).
The Company incurred taxes of $50.96 million (2021: $71.51 million), thus resulting in Net profit after taxation of $203.49 million, a 7% decline relative to $218.69 million reported for the prior year’s corresponding period. For the quarter, Net profit for the quarter rose to $65.41 million compared to $42.22 million recorded for the corresponding quarter of 2021.
Total comprehensive income for the year amounted to $203.49 million relative to $218.69 million in 2021.
Consequently, Earnings per share (EPS) amounted to $0.43 (2021: $0.46) for the year end, while for the fourth quarter the EPS totaled $0.14 (2021: $0.09). The number of shares used in this calculation was 471,266,950 shares. HONBUN last traded on November 29, 2022 at $6.65 with a corresponding P/E ratio of 15.40 times.
Balance Sheet at a Glance:
Total Assets increased by 15% to close at $1.53 billion as at September 30, 2022 (2021: $1.33 billion). The increase in total assets was mainly due to a 1641% increase in ‘Intangible Assets’ amounting to $56.09 million (2021: $3.22 million). ‘Taxation recoverable also contributed to the increase, closing at $6.77 million (2021: $4.03 million).
Shareholder’s Equity totaled $1.16 billion (2021: $1.03 billion) posted as at September 30, 2022. This translated in a book value of $2.46 relative to $2.18 in the prior year.
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