Honey Bun Limited (HONBUN)
For the Year ended September 30, 2017:
Honey Bun Ltd. reported revenue for the financial year totalling $1.25 billion, an increase of 5% compared to the $1.19 billion booked for the prior financial year. For the fourth quarter revenue saw a 2% decline to total $281.70 million relative to $286.76 million the prior year.
Cost of sales rose by 7% to $706.92 million relative to $659.09 million for the same period last year. As such, gross profit grew 2% compared to the previous year, increasing from $531.12 million to $544.20 million.
The company reported other gains of $3.14 million, this compares with the gain of $8.68 million that was reported the year prior. Finance income grew from $1.07 million for the 2016 financial year to $1.62 million for the corresponding period in 2017. Consequently, profit before expenses rose by 1% or $8.08 million to $548.96 million (2016: $540.88 million).
Honey Bun experienced an increase in administrative expenses by 8%, up from $244.86 million in 2016 to $264.35 million. Selling, distribution and promotion expense incurred to the company rose by $32.32 million or 23% to close the year at $173.46 million (2016: $141.14 million).
As a result Total Expenses increased by 13% to total $437.81 million (2016: $386 million). Profits from operations declined 28% to total $111.14 relative to $154.88 million reported in 2016.
Finance costs totalled $5.88 million, up 14% compared to the prior year’s total of $5.13 million.
Pre-tax profit declined to $105.27 million, a 30% decline year over year compared to the $149.74 million reported the year prior. HONBUN incurred tax expenses of $11.36 million for this period relative to $10.18 million last year. Profit after taxation declined 33% from $139.56 million for the year ended September 30, 2016 to $93.90 million. Profit after tax for the quarter totalled $9.25 million relative to $6.80 reported in 2016.
Consequently earnings per share for the financial year totalled $0.20 relative to $0.30 in the corresponding period of 2016. Earnings per share for the quarter amounted to $0.0196 relative to $0.0144 in 2016. The number of shares used in this calculation was 471,266,950 shares. Additionally, The company closed at $4.70 as at the end of trading on November 24, 2017.
With an unrealized loss on investment of $491,828 the company reported total comprehensive income of $93.41 million (2016: $127.17 million).
Balance Sheet at a glance:
As at September 30, 2017, the company’s assets totalled $704.63 million, an increase of 20% compared to the $585.64 million reported as at September 30, 2016. The growth was driven primarily by a 21% or $81.47 million increase in non-current assets to $466.68 million (2016: $385.22 million). The movement was due to a 98% and 13% increase in “Investments” and “Property, Plant & Equipment”. Investments closed the year at $78.08 million (2016; $39.49 million), while Property, Plant & Equipment amounted to $386.95 million (2016: $343.92 million).
Shareholders’ equity amounted to $545.83 million (2016: $471.27 million) resulting in a book value per share of $1.16 (2016: $1.00).