Investors had the weekend to digest the earnings report of Capilano Honey Ltd (ASX: CZZ), whose shares are buzzing higher today as a result.

So What: Capilano Honey is an Australian honey packer and producer and likely supplied a large number of the honey products on the shelves of your local supermarket.

For the period ended 31 December 2015, the company reported revenue of $67.1 million, which was nearly 16% higher than in the prior corresponding period (pcp), while earnings before interest and tax (EBIT) rose almost 50% to $8.02 million. The company said the boost in sales was driven by its continued growth in market share, together with the 32% growth in exports (sales to Asia were up 53%).

Also worth noting is that the company increased its inventory levels considerably. Inventory value for the period increased from $23.3 million to $32.6 million as stock grew from 2,223 tonnes to 4,288 tonnes.

Considering the price of honey rose to $5.64 per kilogram, up 22% compared to the pcp, a greater level of inventory isn’t a bad thing and does give the company the ability to meet rising levels of demand. In saying that however, a sudden fall in the price of honey could be the catalyst for a significant impairment on that inventory, which is a risk investors need to bear in mind.

Now What: In keeping with its normal practice, Capilano will not pay an interim dividend this year. However, it did provide an upbeat outlook, saying “Greater levels of inventory and continued interest in our natural wholesome products, in conjunction with new product ranging, should see Capilano continue to prosper over the remainder of the financial year and into the future.”

Capilano’s shares rose as much as 11.9% to a high of $21.55, but are currently trading 6.2% higher at $20.44. That compares to a 0.3% decline for the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO).

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.