Date: November 30, 2018
Honey Bun (1982) Limited (HONBUN), booked a 5% increase in revenue to $1.32 billion, up from $1.25 billion reported a year ago. For the fourth quarter, revenue climbed by 10% totaling $310.71 million (2017: $281.70 million).
The Company had a marginal increase in cost of sales to $715.89 million (2017: $706.92 million) which consequently led to a 10% increase in gross profit to close at $601.29 million (544.20 million). For the quarter, gross profit recorded a 17% rise amounting to $146.48 million compared to $124.94 million in the prior corresponding period.
HONBUN reported other income of $1.59 million, a 50% decline on the $3.14 million posted in the prior year. Finance income totaled $1.83 million, up by 13% compared to $1.62 million reported twelve months earlier.
Administrative expenses rose slightly by 2% to $268.95 million (2017: $264.35 million), while Selling, Distribution & Promotion expenses increased by 34% to $232.67 million (2017: $173.46 million). Total expenses for the year end amounted to $501.61 million, 15% above the $437.81 million recorded for the prior year. For the fourth quarter, total expenses increased by 15% to $135.40 million (2017: $117.81 million).
As a result of increased expenses, profit from operations contracted 7% from 111.14 million in 2017 to $103.09 million for the period in review. Finance costs declined by 15% to close at $5 million (2017: $5.88 million). Profit before taxation declined by 7% to $98.10 million compared to $105.27 million booked in 2017. Profit before taxation for the fourth quarter amounted to $17.70 million (2017: $8.51 million).
The Company incurred taxes of $11.67 million (2017: $11.36 million), thus resulting in Net profit after taxation of $86.42 million, an 8% decline relative to $93.90 million reported for the prior year’s corresponding period. For the quarter, Net profit before taxation increased to $14.32 million compared to $9.25 million recorded for the corresponding quarter of 2017.
Total comprehensive income for the year amounted to $90.89 million relative to $93.41 million in 2017.
Consequently, Earnings per share (EPS) amounted to $0.18 (2017: $0.20) for the year end, while for the fourth quarter the EPS totaled $0.03 (2017: $0.02). The number of shares used in this calculation was 471,266,950 shares. HONBUN last traded on November 29, 2018 at $4.02.
Balance Sheet at a Glance:
Total Assets increased by 12% to close at $788.43 million as at September 30, 2018 (2017: $704.63 million). The increase in total assets was mainly due to a 27% increase in ‘Property, Plant and Equipment’ which closed the period at $491.54 million (2017: $386.95 million). ‘Intangible Assets’ also increased by 50% from $1.66 million in 2017 to $2.49 million in 2018. The overall movement in the asset base was tempered by a 19% decline in receivables to $66.13 million (2017: $81.70 million).
Shareholder’s Equity totaled $617.87 million (2017: $545.83 million) posted as at September 30, 2018. This translated in a book value of $1.31 relative to $1.16 in the prior year.
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