Daniel Chong, in his inaugural address as chief executive officer of Honey Bun Limited, outlined that the company’s priorities have shifted from profit maximisation to investing in long-term growth.

This shift to long-term investment began when the company expanded its production capacity by commissioning a new manufacturing facility at the MJS Tech Park in Spanish Town, St Catherine, in September 2025. With the new plant, Honey Bun will be able to meet the growing demand for its products locally and internationally  

“This year was not about maximising profit. It was about building the infrastructure that will drive the next decade of growth,” Chong said during the company’s annual general meeting held at Jamaica Pegasus in New Kingston on Wednesday (March 11).

“For two decades, our operations were primarily concentrated at Retirement Crescent in Kingston, starting with one lot and expanding into five lots. This location has served us well, but demand for our products has outgrown the space available. Demand for Honey Bun products has outgrown the facilities that built the company, and this expansion ensures we are ready for the next generation of growth,” he added.

In a question-and-answer session, Chong indicated that the company will continue manufacturing sweetened baked goods at the Retirement Crescent location and has transferred the production of other goods to its new facility. The new plant in Angels houses modern production technology, improved logistics systems, and expanded storage capacity, enabling Honey Bun to scale its production while improving efficiency.

Decline in profits

Chong’s announcement of the company’s shift in strategic priorities comes against the backdrop of a 57 per cent decline in pre-tax profits of J$116.4 million for the year ended September 30, 2025. In the meantime, net profit after tax fell to J$109.2 million compared with J$230.1 milllion in 2024.

Notwithstanding, the company generated nine per cent higher revenue than in 2024, closing at J$4.1 billion. This marked the first time Honey Bun surpassed the J$4 billion threshold.

“In the short term, commissioning a new manufacturing plant inevitably comes with higher operating costs. Administrative expenses increased by 32 per cent, while selling and distribution expenses increased by 14 per cent during the year, as we invested in staffing, logistics, and operational readiness,” Chong told shareholders.

“These investments were deliberate. Short-term earnings pressure is the price of long-term capacity. In addition to expanding production capacity, we also continue to invest in the company’s future growth,” he stated further.

Increasing exports

As the Honey Bun ramps up production, the company is eyeing expansion into export markets  

“Exports remain an important area of opportunity for Honey Bun, particularly in markets with large Caribbean diaspora populations. Encouragingly, export sales recorded strong double-digit growth during the year, demonstrating the potential for Jamaican-made products to compete successfully in international markets. The Jamaican Diaspora represents one of the largest growth opportunities for our company, and we intend to serve that demand with products proudly made here in Jamaica,” Chong highlighted.

Honey Bun is also expanding its offerings with new products.

The CEO said the new manufacturing plant has strengthened the company’s balance sheet with significant increases in the value of productive assets – property, plant and equipment. The asset class more than doubled in value to J$1.59 billion.

Total assets for 2025 amounted to J$2.96 billion, up from J$2.62 billion the year prior. The company’s receivables and cash and cash equivalents declined significantly, the latter from J$382.21 million to J$193.37 million.