Certified Organics cuts its loss

Certified Organics says profits are still a year away but it took another step closer yesterday, reducing its full-year loss by $0.16 million.

The Auckland-based company, which commercialises natural agricultural products to control weeds, plant disease and pests, yesterday reported a full-year loss of $0.75 million, down from $0.91 million a year earlier.

Managing director David Warrick said the company was encouraged by its Australian sales - which topped $500,000 for the year - and expected these to improve in the year ahead.

No forecast was issued, but its previously-stated expectation for a net profit for the December 2005 year was still "a reasonable view".

"[It] would not mean we would necessarily be in break-even for the year but we would be breaking even by the end of the year," Warrick said.

Its Organic Interceptor weedkiller and mould control products were launched across the Tasman in November and $0.3 million worth of its organic herbicide had been sold to the South Australian Government's programme to eradicate a noxious weed last year.

Warrick said the figures meant the company was "no longer solely dependent upon New Zealand for its revenue stream".

The exports proved particularly important "in view of the disappointing sales result from the New Zealand retail market where sales suffered from deficiencies in the quality of the distribution, compounded by the poor spring and early summer weather".

This year, the company is looking forward to further penetrating the Australian retail market and the noxious weed programme.

Late season sales into the New Zealand commercial agricultural market have been strong in the first two months of this year.

The company is working with its New Zealand distributor, E Products, to upgrade its approach to marketing and expects improved local sales in the coming year.

Certified Organics is still working on partnerships in Switzerland, Austria, Germany, Spain, Portugal and Italy but Warrick said getting to market could take a long time because of the European regulatory process.