Manufacturing company Honey Bun just recorded its best financial performance in its history.

The company surpassed $3 billion in revenue for the first time. The company also took home $232 million in net profit for their full financial year ended on September 30, 2023, up from $203 million the year before. 

Speaking on Taking Stock with Kalilah Reynolds, Business Journalist David Rose said the company’s performance was even more impressive given the issues it faced.

“This performance was against the background they faced last year, which was higher prices for inputs, higher fuel prices and just inflation all around,” Rose said.

He noted that the company was able to increase its production thanks to a $167 million investment in new equipment for the business. 

Rose noted, however, that despite Honey Bun’s impressive performance, the stock’s price remains stagnant. 

“Honey Bun’s stock price was down 18% last year, and even with the results that came out recently, you’re not seeing that reaction in the stock price,” he said.

Honey Bun closed the week at $6.30. 

Rose also noted that the company’s price-to-earnings ratio is 12.7 times, which is relatively low for a manufacturing company.

The price-to-earnings ratio is used to compare companies in the sector against the market. The Journalist noted that lower-than-anticipated P/E ratios have become the norm in the Jamaican market as investors contend with high inflation, interest rates and a loss in overall market confidence.