Honey Bun, one of the top movers on the Jamaican stock exchange is reporting a 16.5% decline is net profit despite a 6.8% increase in sales for the 1st quarter ending December 2016. The company earned profits of $37.9m from Sales of $312.4m.
The company’s performance is affected by increased operating expenses and a reduction in margins due to increasing costs (while maintaining current prices to customers).
The company is also reporting that
In the first quarter of financial year 2016-2017 sales increased by almost $20 million, profit before taxes was $4 million less than the prior year. Gross margin, as a percentage of sales, was 3% lower mainly due to rising costs while price increases were withheld.
While revenue increased by 7%, administrative expenses and selling and distribution costs increased by 3% combined.