Comvita blames NZ market for flat half year profit

Natural health food company Comvita today posted a June half year net profit of $646,400, down 4 per cent on the same period a year ago.

The company, which makes bee products, said the result was hurt by sluggish domestic sales as a higher Kiwi dollar caused Asian tourists to temper their spending.

With the New Zealand dollar now lower against most of its major trading partners, the company expects margins to improve in the second half.

Comvita chairman Bill Bracks said strong sales growth in existing markets in Australia, United Kingdom, Hong Kong and Japan partly offset the decline in the New Zealand market.

Exports now account for 60 per cent of all sales, and grew by 30 per cent in New Zealand dollar terms during the half year.

"All export markets are growing strongly, more than offsetting what we expect to be a flat performance in the New Zealand market," Mr Bracks said.

"We remain on track to achieve our revenue and profit targets we set at the beginning of this year."

Shares in Comvita, which is listed on the New Zealand Alternative Exchange, were untraded at $2.24 today, against a year high of $2.66.

The company has previously fallen short of prospectus forecasts, posting a $1.26 million profit in the year to December 2004.

Comvita will pay an interim dividend of 2 cents per share on August 31.

- NZPA