HONBUN reports 81% increase in year end net profit

Date: December 02, 2019

Honey Bun (1982) Limited (HONBUN), booked a 17% increase in revenue to $1.54 billion, up from $1.32 billion reported a year ago. For the fourth quarter, revenue climbed by 20% totaling $374 million (2018: $310.71 million).

The Company booked an increase in cost of sales to $799.17 million (2018: $715.89 million) which consequently led to a 24% increase in gross profit, to close at $744.81 million (2018: $601.29 million). For the quarter, gross profit recorded a 22% rise amounting to $179.27 million compared to $146.48 million in the prior year’s corresponding quarter.

HONBUN reported other income of $8.99 million, a drastic increase on the $1.59 million posted in the prior year. Finance income totaled $1.51 million, down by 17% compared to $1.83 million reported twelve months earlier.

Administrative expenses rose by 15% to $320.94 million (2018: $279.67 million), while Selling, Distribution & Promotion expenses increased by 17% to $250.28 million (2018: $214.28 million). Total expenses for the year end amounted to $571.22 million, 16% above the $493.95 million recorded for the prior year. For the fourth quarter, total expenses increased by 17% to $149.34 million (2018: $127.74 million).

Profit from operations expanded by 78% from 103.09 million in 2018 to $183.69 million for the year in review. Finance costs surged by 41% to close at $7.03 million (2018: $5 million). Profit before taxation increased by 86% to $182.58 million compared to $98.10 million booked in 2018. Profit before taxation for the fourth quarter amounted to $38.09 million (2018: $17.70 million).

The Company incurred taxes of $26.11 million (2018: $11.67 million), thus resulting in Net profit after taxation of $156.47 million, an 81% increase relative to $86.42 million reported for the prior year’s corresponding period. For the quarter, Net profit for the quarter increased to $30.77 million compared to $14.32 million recorded for the corresponding quarter of 2018.

Total comprehensive income for the  year amounted to $156.47 million relative to $90.89 million in 2018.

Consequently, Earnings per share (EPS) amounted to $0.33 (2018: $0.18) for the year end, while for the fourth quarter the EPS totaled $0.07 (2018: $0.03). The number of shares used in this calculation was 471,266,950 shares. HONBUN last traded on November 29, 2019 at $6.58.

Balance Sheet at a Glance:

Total Assets increased by 21% to close at $957.94 million as at September 30, 2019 (2018: $788.43 million). The increase in total assets was mainly due to an increase ‘Cash and Cash Equivalents’ amounting to $192.76 million (2018: $99.55 million). ‘Receivables’ also contributed to the increase, closing at $94.38 million (2018: $66.13 million).

Shareholder’s Equity totaled $740.51 million (2018: $617.87 million) posted as at September 30, 2019. This translated in a book value of $1.57 relative to $1.31 in the prior year.


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