Honey Bun bakery doubles profit
Bakery company Honey Bun Limited posted $38 million in net profit for its June third-quarter or 124 per cent more than a year earlier.
The company attributed the rise to management control of its cost-to-revenue ratios.
Earnings per share grew to eight cents from four cents a year ago; and 24 cents over nine-months compared to 14 cents a year earlier.
"It should be noted that due to seasonal variations the first and second quarters are normally more profitable than the third and fourth quarters," said chief executive officer Michelle Chong in the preface to the financials.
During the quarter, revenues grew by one-third to $296 million which represented solid growth beyond inflation. Expenses grew 17 per cent to $94 million during the review period.
The company also quintupled its cash holdings from $5 million to $26 million. Long-term debt decreased from $38 million to $16 million due to prepayments of loans.
Its fixed assets increased by due to investments in capacity building equipment and fleet.
"During this quarter, Honey Bun became the first Jamaican bakery to be hazard analysis and critical control points-certified, representing our commitment to international food safety standards. Honey Bun was also recognised by the Jamaica Exporters' Association among the top 50 exporters," said Chong.