Revenue up 8% to end financial year at $1.67 billion

Baking company Honey Bun managed to grow its profit from operations by 10 per cent to $196.43 million for the year under review.

This performance is creditable considering the challenges faced by the company in 2020 given the fall-out caused by COVID-19. Profit from operations grew 10 per cent from the $176.66 million recorded in 2019.

Finance income for the year in review totaled $4.02 million, up by 166 per cent compared to $1.51 million reported 12 months earlier. At the same time, finance costs surged by 25 per cent to close at $1.89 million compared to the $1.51 million recorded in 2019.

Depreciation in the value of investments classified as fair value through profit or loss amounted $5.39 million, relative to an appreciation amount of $5.92 million 12 months earlier. As such, profit before taxation increased by five per cent to $191.04 million compared to $182.58 million booked in 2019.

PROFITS SLIGHTLY UP OVER 2019

Profit before taxation for the fourth quarter amounted to $60.63 million, up from the $38.09 million recorded for 2019. The company incurred taxes of $24.29 million compared to the 2019 amount of $26.11 million.

This resulted in net profit after taxation of $166.75 million, a seven per cent increase relative to $156.47 million reported in 2019. For the fourth quarter, net profit increased to $54.08 million coming from the $30.77 million recorded for the corresponding quarter of 2019.

Revenues for the year were booked at $1.67 billion, up from $1.54 billion accumulated in 2019. This represented an increase of eight per cent.

For the fourth quarter, revenue climbed by 15 per cent totaling $431.38 million (2019: $374. million). Cost of sales went up by 10 per cent to $875.50 million, coming from $799.17 million in 2019.

Consequently, this led to a seven per cent increase in gross profit to close the year at $799.27 million, slightly up from the $744.81 million recorded in 2019. For the quarter, gross profit recorded an 11 per cent rise, amounting to $199.24 million compared to $179.27 million in the fourth quarter in 2019.

Honey Bun reported other income of $9.50 million in 2020, a $502,482 increase on the $8.99 million posted in 2019. Administrative expenses rose by 12 per cent to $333.75 million (2019: $299.27 million), while selling, distribution and promotion expenses increased by five per cent to $292.48 million, up from the 2019 amount of $277.46 million.

TOTAL EXPENSES RISE WHILE TOTAL ASSETS JUMPED 11 PER CENT

Total expenses for the year amounted to $626.23 million, nine per cent above the $576.73 million recorded in 2019. For the fourth quarter, total expenses increased by three per cent to $159.36 million (2019: $154.86 million).

Impairment gain on financial assets amounted to $11.75 million relative to a loss of $406,787 booked 12 months earlier. Total comprehensive income for the year 2020 amounted to $166.75 million relative to $156.47 million reported in 2019.

Total Assets increased by 12 per cent to close at $1.07 billion as at September 30, 2020 (2019: $957.94 million). The increase in total assets was mainly due to an increase in cash and cash equivalents amounting to $296.98 million (2019: $192.76 million).

Property, plant and equipment also contributed to the increase, closing at $553.45 million (2019: $510.60 million). Shareholder’s equity totaled $869.56 million (2019: $740.51 million) posted as at September 30, 2020.

This translated into a book value of $1.85 relative to $1.57 in the prior year.