Q1 Profit Increased by 52.3% at Honey Bun
- Honey Bun Limited recorded a 52.3% year-over-year increase in its net profit to $68.29Mn for the first quarter ended December 31, 2022 relative to the corresponding period of 2021.
- Operating revenue for the quarter was up by 23.0% yoy to $817.40Mn. Gross profit for the quarter grew by 35.2% to $357.64Mn and consequently, the gross profit margin improved to 43.8% from 39.8%. This was attributable to management’s focus on islandwide distribution and efficiency. The company opened its Old Harbour outlet in Q1, bringing the total wholesale outlets across the island to nine (9).
- As a hedge against the negative impact of current and future supply chain disruptions, inventory increased by 78.4% to close at $217.67Mn and payables increased by 30% to close at $250.95Mn in Dec 2022. The revenue growth also contributed to the increase in receivables of 64% to $198.5Mn.
- HoneyBun’s stock price has decreased by 7.60% since the start of the calendar year. The stock closed Thursday’s trading session at $7.38 and currently trades at a P/E of 15.4x, which is below the Junior Market Manufacturing Sector Average of 36.4x.
- Further growth is anticipated for the financial year, and to that end, additional outlets are being planned country-wide, along with adding more vehicles to its fleet as it builds out its distribution plans. Additionally, the company plans to increase exports, improve efficiency and further automate production, thereby boosting profitability.