Baked goods manufacturer Honey Bun Limited has made a billion-dollar investment in a new production facility in Angels, St Catherine, which is set to more than double its manufacturing capacity.
Honey Bun signed the long-term lease agreement for the 160,000 square feet mega-facility on Wednesday March 27, 2024.
“These are exciting times,” said Honey Bun’s CEO Michelle Chong.
“The signing of this lease signifies that the future of the company is bright. Our products are in high demand, and we have outgrown our current facility, so we must meet the demand,” she said.
Deputy CEO Daniel Chong said that the long-term-lease of the new four-and-a-half-acre property, which will be operational in the next seven to 10 months, will initially see Honey Bun moving half of its operation from its current Retirement Crescent property in Kingston.
“The new property makes access to major markets more efficient while allowing us to answer the call from our customers for greater supply. We are looking forward to the growth of the business for which we are now well positioned,” he said.
Meanwhile, Honey Bun’s Executive Chairman Herbert Chong was equally optimistic, noting that the expansion was part of Honey Bun’s robust strategic growth plan.
“We will definitely be introducing new products, and logistically, the new facility is between two major highways and gives us access to greater Jamaica.” He added that while the Retirement Crescent facility will continue to supply Kingston and St Andrew, St Thomas, Portland and St Mary; the new Angels facility will service the rest of the island.
“Good days are ahead for Honey Bun and our customers,” he said.
The bakery’s latest financial results show gross operating revenue for the quarter ending December 2023 at $941.6 million, which is up 15 per cent on the prior year comparative period, whilst the gross profit ratio closed at 46.2 per cent compared to 43.8 per cent for the prior year comparative period.
The three months ending December 31, 2023, saw the company earning net profits of $86.5 million which was 25 per cent above the prior year comparative period.
