Honey Bun Profits Up 63 Per Cent

honey-bun (1)Honey Bun has reported second-quarter profits of $16 million, up 63 per cent over the prior year’s corresponding quarter ended March 31, 2011.

The profit performance was recorded before the entity became a listed company on the Junior Market of the Jamaica Stock Exchange (JSE) on June 3 this year and before the tax credit which the Junior Market status necessitates. Without the taxation charge of $8 million, a $23-million net profit position would have been reported, 144 per cent over the corresponding period in 2010.

Michelle Chong, CEO, said in a statement that improvements in distribution, which increase the availability of Honey Bun products in the market, had a positive effect on margins, while new equipment and processes also improved efficiencies and reduced cost. For the quarter, sale volume increased 12 per cent while the cost of sales remained flat. Total expenses of $54 million, increased 13 per cent over the prior year’s corresponding quarter.

Honey Bun began trading at $3.45, jumping by the allowable 15 per cent above the $3.00 offer price on the first day of trading on the Exchange. Yesterday, share price had appreciated to $4.41 on the Junior Market, 47 per cent above the offer price and with an annualized return amounting to a share price of approximately $5.70.

“As the company moves into the public arena, the initial plans are to continue to improve efficiencies and to provide the public with more variety in snack products,” said Chong.

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