Profit flat for Honey Bun as it eyes new fast-food investments, builds out distribution

 

In its latest financial report for the year ended September 30, 2024, management indicated that investment costs for Honey Bun (1982) Limited tripled from $20 million at year end 2023 to $69 million in 2024.

Spend on newly acquired retail pastry shop, Swirls, will further increase investment outlay for Honey Bun. The concern was purchased from founders, Michelle and Herbert Chong according to disclosures made at mid-year 2024.


The company indicated in its third quarter report that future investment in the fast-food business, including new shops and equipment in strategic locations, was estimated at $50 – $100 million over the next 2 to 3 years.

Reduction cash as also due to in Angels St. Catherine to meet changing distribution needs as indicated. At year end September 30, 2024, cash and cash equivalents were $382.11 million down from $464.78 million in the prior year.

For the financial year ended September 30, 2024, earnings per share for Honey Bun Limited was flat at $0.49 reflecting a year in which expenses climbed significantly.

Revenue for the pastry maker climbed by year end September to $3.84 billion, up from $3.41 billion at end September 2023. However net profit was $230.07 million, down marginally from $232.09 million the year before.

Expenses which climbed were administrative costs, selling and distribution and finance costs. Inventory and payables climbed as well.

Finance costs went higher, climbing to $41.9 million doubling $7.85 million in 2023. Administration costs were $805.51 million, up from $664.57 million. Selling and distribution for the year ended was $630.87 million up from $518.28 million the year before.

Honey Bun describes itself the fastest growing wholesale bakery in Jamaica, specialising in producing individually packaged pastries and baked snacks. We have a wide array of delicious products lines Honey Bun, Buccaneer, Shorty and Pickney Crackaz.

Honey Bun was founded in 1982 by Herbert Chong, now Executive Chairman, and Michelle Chong, the CEO. The company has expanded from a retail bakery to a wholesale bakery producing variations representing   over 40 SKUs from three brands: Honey Bun, Island Bites and Buccaneer Jamaica Rum Cakes.

Honey Bun indicates on its website that it exports through the Caribbean region and the USA, with UK and Canada. Products are in major chains including Publix in USA, ASDA and Tesco in the UK and Loblaws in Canada, as well as small independent stores.

Comments

Post a Comment

Popular posts from this blog

Kintyre makes US$300,000 investment in Sevens Ice

Image
  Tyrone Wilson Chairman, President and CEO Kintyre Holdings (JA) Limited (KHL) and Seven Kingston Limited, owners of the Seven Ultra Lounge and Restaurant, on January 14 announced a joint venture to launch Sevens Ice. Kintyre Holdings has made an investment in excess of US$300,000 in acquiring an associate stake in Seven and also establishing the start-up for the ice venture. "This initiative addresses Jamaica’s growing demand for high-quality ice, with operations set to begin in Q1 2025," Wilson stated. Additionally, the venture has acquired a cold storage facility to manage its start-up capacity and is exploring the importation of ice to bridge the gap between demand and supply, ensuring a consistent and reliable market presence. Distribution Expansion Wilson said that Sevens Ice has secured a distribution point in Kingston and is in the process of setting up another in St. Catherine to serve the western and central parts of the island. This expansion will ensure broade...
Read more

Wish List: University Hospital CEO seeks top-flight CFO for turnaround miracle

Image
  It's a puzzling end of year for the finance team at the University Hospital of the West Indies where, despite an ongoing plan to quadruple plant size and service centres for the teaching institution, its current state is one of insolvency, with CEO Fitzgerald Mitchell wishing for a new Chief Financial Officer with a touch of genius to help in turning things around. Medium term, the government is aiming to significantly update this, the Caribbean's premium medical hospital and teaching school. At last report, the price tag on the project was $4.9 billion. In the works are plans for a new 6-storey, 120,000 square feet medical facility, which will accommodate an additional 40 medical and surgical beds, improvements to outpatient or ambulatory surgery, lecture rooms, conference rooms, and upgrading of the cardiology hybrid interventional surgery room and the neonatal intensive care and administrative departments. However, the institution is currently struggling to become solvent ...
Read more

BCMG increases risk management oversight: Launches surveys-as-a -service

Image
Insurance brokers in Jamaica often send underwriters themselves to survey risks; however, they frequently do not have the technical knowledge required to produce the best results. BCMG Insurance Brokers Limited (BCMG) in response, introduced - in support of the wider brokerage industry - an updated surveys-as-a service product which has been embraced by the wider community as groundbreaking. Senior Risk Manager on the New Business Team of BCMG David Lazarus explains, “We saw where the technical details and in-depth knowledge of the intricacies of business operations were not always being taken into consideration. This was seen as an opportunity to expand into this space.” In 2020, Billy Craig Insurance Brokers and Maritime General Insurance Brokers, MGI, signed an agreement to merge their operations to form BCMG Insurance Brokers Limited. Following the union, the new company has been exploring options to expand the service capability of the brokerage and increase value for clients...
Read more