November 30, 2020
Honey Bun (1982) Limited (HONBUN), booked an 8% increase in revenue to $1.67 billion, up from $1.54 billion reported a year ago. For the fourth quarter, revenue climbed by 15% totaling $431.38 million (2019: $374. million).
The Company booked a 10% increase in cost of sales to $875.50 million (2019: $799.17 million) which consequently led to a 7% increase in gross profit, to close at $799.27 million (2019: $744.81 million). For the quarter, gross profit recorded a 11% rise amounting to $199.24 million compared to $179.27 million in the prior year’s corresponding quarter.
HONBUN reported other income of $9.50 million, a $502,482 increase on the $8.99 million posted in the prior year.
Administrative expenses rose by 12% to $333.75 million (2019: $299.27 million), while Selling, Distribution & Promotion expenses increased by 5% to $292.48 million (2019: $277.46 million). Total expenses for the year end amounted to $626.23 million, 9% above the $576.73 million recorded for the prior year. For the fourth quarter, total expenses increased by 3% to $159.36 million (2019: $154.86 million).
Impairment gain on financial assets amounted to $11.75 million relative to a loss of $406,787 booked twelve months earlier.
Profit from operations expanded by 10% from $176.66 million in 2019 to $196.43 million for the year in review. Finance income totaled $4.02 million, up by 166% compared to $1.51 million reported twelve months earlier. While, finance costs surged by 25% to close at $1.89 million (2019: $1.51 million).
Depreciation in value of investments classified as fair value through profit or loss amounted $5.39 million, relative to an appreciation amount of $5.92 million twelve months earlier.
As such, profit before taxation increased by 5% to $191.04 million compared to $182.58 million booked in 2019. Profit before taxation for the fourth quarter amounted to $60.63 million (2019: $38.09 million).
The Company incurred taxes of $24.29 million (2019: $26.11 million), thus resulting in Net profit after taxation of $166.75 million, a 7% increase relative to $156.47 million reported for the prior year’s corresponding period. For the quarter, Net profit for the quarter increased to $54.08 million compared to $30.77 million recorded for the corresponding quarter of 2019.
Total comprehensive income for the year amounted to $166.75 million relative to $156.47 million in 2019.
Consequently, Earnings per share (EPS) amounted to $0.35 (2019: $0.33) for the year end, while for the fourth quarter the EPS totaled $0.11 (2019: $0.07). The number of shares used in this calculation was 471,266,950 shares. HONBUN last traded on November 27, 2020 at $4.81 with a corresponding P/E ratio of 13.59 times.
Balance Sheet at a Glance:
Total Assets increased by 11% to close at $1.07 billion as at September 30, 2020 (2019: $957.94 million). The increase in total assets was mainly due to an increase ‘Cash and Cash Equivalents’ amounting to $296.98 million (2019: $192.76 million). ‘Property, plant and equipment’ also contributed to the increase, closing at $553.45 million (2019: $510.60 million).
Shareholder’s Equity totaled $869.56 million (2019: $740.51 million) posted as at September 30, 2020. This translated in a book value of $1.85 relative to $1.57 in the prior year.
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