Honey Bun expands into Cayman
Jamaican baking company Honey Bun has sourced initial markets in Cayman 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.
Chief Executive Officer Michelle Chong believes that the customers in Cayman will become repeat customers, thus improving growth numbers for the company.
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.
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 buy 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 of 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.