Honey Bun continues to recover from poor results for 2014 with a 20 percent sales growth in the second quarter of the current financial year and an increase in gross profits of 24 percent compared with the corresponding period last year.
Honey Bun ended at a 52 week’s closing high on Thursday.
Profits also benefited from improvement in gross profit margins, which increased to 43.6 percent in the quarter from 42.3 percent in 2014 and came in at 44.4 percent for the six months, up from 44.07 percent. Earnings per share ended at 50 cents for the six months and the company should go on to increase this in the remaining quarters.
The improved revenue picture translated into profit before taxes, rising 145 percent over the prior year for the quarter of $30.5 million. The increase was partially due to the normalizing of distribution costs compared to 2014, when there were disruptions to this aspect of the business. For the year to date, sales revenues increased 16 percent, and profits climbed 41.6 percent to $47 million. Sales and profit would have benefited from the Easter falling to the end of the quarter. The company usually have a poor September quarter with lower revenues than the others.
Administrative costs rose marginally in the quarter to $44.79 million. In 2014, Honey Bun incurred $43.98 million in this category and for the six months, $89.85 million versus $85.24 million. Selling & distribution costs rose to $32 in the quarter from $30 min 2014 and for the six months, $62.3 million compared with $52.9 million. “Exports increased by 43 percent for the quarter and by 66 percent year to date over the corresponding periods’, management indicated.
The company’s equity stood at $356 million while cash and investments grew to $61 million, receivables of $72 million were slightly up on 2014 levels while inventories kept steady at $45 million and payables declined to $56 million from $64 million in 2014.
The company’s stock last traded on the junior market at $1.90 but now has a bid at $2.35 to buy 12,000 units.
[…] jumped 129 percent over the June 2014 quarter, after taxes for Honey Bun to $17 million for the June 2015 quarter and an increase for the nine months period to $64 million […]