Honey Bun sweetens profits

profitsHoney Bun quadrupled its June quarterly profit to $11.8 million compared with year earlier levels due to increased exports and operational efficiencies.

“This improvement was mainly as a result of significant improvement in the management of inventory and greater efficiencies in production,” according to CEO Michelle Chong in her notice to shareholders which accompanied financials.

The bakery increased total sales by 14 per cent to $180 million, “while profits increased for that period by 406 per cent over the prior year period”, she added. Export sales increased over 245 per cent for the threemonth period and 78 per cent over for year to date.

“Honey Bun’s strategy to grow exports remains viable with new markets emerging,” Chong said. The company which exports its product mainly to the US benefited from larger orders in the quarter.

Some two years ago, Honey Bun installed software that tracks and forecasts orders which helped drive the company’s net profit. The software predicts the orders of customers using intelligence from previous spending patterns.

“Our overseas exports are not yet predictable but are based on a demand basis,” indicated Christopher Morris senior account supervisor, who spoke to the Observer on Monday.

The balance sheet shows improvements in the reduction of receivables from the prior year, moving from $61 million in June 2013 to $55.5 million at June 2014, financials indicated.

Also in the quarter under review the bakery stated that it received the 2013 Award for Runner-up Champion Exporter in Category 1 from the Jamaica Exporters’ Association.

The bakery operates from its Retirement Crescent premises in Kingston. The company’s shares were listed on the Junior Market of the Jamaica Stock Exchange (JSE) in June 2011.it 

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