Durrant Pate/Contributor

Honey Bun recorded another profitable financial year, with its net profit ending 14 per cent higher.

For the financial year ended September 2023, Honey Bun’s net profit closed on J$232.09 million, compared to J$203.49 million reported in 2022. For the last quarter, net profit amounted to J$30.14 million, down from the J$65.41 million posted in the 2022 corresponding period.

Profit before taxation for the year amounted to J$284.45 million, representing a 12 per cent increase relative to the J$254.44 million reported in 2022. Profit before taxation for the fourth quarter amounted to J$13.82 million (2022: J$70.15 million).

Profit from operations for the year amounted to $276.92 million, a 12 per cent increase relative to J$246.80 million reported in 2022. Profit from operations for the fourth quarter amounted to J$13.12 million (2022: J$71.04 million).

Taxation for the year ended September 30, 2023 went down 3.0 per cent to J$52.36 million (2022: J$50.96 million). Earnings per share (EPS) for the year amounted to J$0.49 (2022: J$0.43), while EPS for the last quarter totalled J$0.06 (2022: EPS: J$0.14).

Notably, Honey Bun’s stock price started the first trading week of the new year at J$6.40 with a corresponding P/E ratio of 13.00x.

Revenue performance

Revenues for the year is up 16 per cent totalling J$3.41 billion compared to J$2.95 billion in the corresponding period last year. Revenue for the fourth quarter rose 8.0 per cent, closing at J$851.01 million compared to J$790.50 million for the comparable quarter of 2022.

Cost of sales amounted to J$1.94 billion (2022: J$1.78 billion), representing an increase of 9.0 per cent year-over-year. Administrative expenses went up by 25 per cent to close at J$664.56 million (2022: J$531.03 million), while selling and distribution expenses rose by 27 per cent from J$408.06 million in 2022 to J$518.28 million in the period under review.

Impairment losses on financial assets amounted to J$21.47 million relative to impairment gains of J$7.54 million reported in 2022. Finance income increased by 29 per cent to total J$16.18 million (2022: J$12.56 million), while finance costs totalled J$7.85 million, a 141 per cent increase from the $3.26 million booked in 2022.

The increase in finance costs was primarily due to lease interest, which grew by 203 per cent, from $2.37 million in 2022 to J$7.21 million in 2023. Honey Bun’s assets at the end of the year totalled J$1.74 billion (2022: J$1.53 billion).

The growth in the company’s asset base was primarily due to a 34 per cent increase in cash and cash equivalents, which amounted to J$464.78 million (2022: J$346.92 million), followed by an 11 per cent increase in property, plant and equipment, which totalled J$735.78 million (2022: J$665.71 million).

Shareholder’s equity was J$1.32 billion (2022: J$1.16 billion), representing a book value per share of J$2.79 (2022: J$2.46).