Sunday 22 September, 2019

Honey Bun expands into Cayman, Antigua

Chief Executive Officer Michelle Chong believes that both the customers in Cayman and Antigua will become repeat customers, thus improving growth numbers for the company.

Chief Executive Officer Michelle Chong believes that both the customers in Cayman and Antigua will become repeat customers, thus improving growth numbers for the company.

Local baking company Honey Bun has sourced initial markets in Cayman and Antigua for the export of their products.

The company, which made the disclosure in a notice to shareholders on the Jamaica Stock Exchange earlier this week, is pushing the distribution of its new Buccaneer Jamaica pocket-size rum cakes.

Earlier this year, Honey Bun officially opened its new factory covering 11,500 square feet on Retirement Crescent in Kingston. Additionally, the baking company added a fourth production line allowing for increases in production for the international and local markets.

The new space is being used as a bread plant and distribution facility.

Chief Executive Officer Michelle Chong believes that both the customers in Cayman and Antigua will become repeat customers, thus improving growth numbers for the company.

A year ago, the company reported a five per cent increase in sales while pretax profits declined by 30 per cent to close at $105 million. Executive Chairman of the company, Herbert Chong reasoned that the company was relying on the build out of the new warehouse to purchase equipment to increase capacity for the 2018 financial year.

Previously, Honey Bun’s capacity was maximized.

Already, the company has begun realising returns from its investment of $130 million, as sales moved up 15 per cent to $332 million as at the end of June 2018.

Chung attributed the increase in sales to continued investment in production capacity and the addition of trucks to improve distribution service. Honey Bun’s profit increased 28.5 per cent or $2.16 million quarter over quarter and was largely attributable to increased sales as well as gains from the depreciating local currency. 

For the latest news, download our app at http://bit.ly/GetALoopJM for Android; and at http://bit.ly/GetiLoopJM for IoS.

 

Get the latest local and international news straight to your mobile phone for free:

  

Comments