KEY POINTS:
Honey products company Comvita yesterday reported a $1.1 million June-year loss, slightly down on the $1.2 million it forecast on July 2.
That compares with a profit of $944,000 in the previous June year.
Comvita said it expected sales in the second half to be significantly above the same period last year and was expecting a "positive" result.
It also expected to be increasingly profitable, particularly if the New Zealand dollar stays down.
The loss accompanied a 5 per cent rise in revenue to $19.3 million. However, revenue had been budgeted to be up 20 per cent.
The loss was the result of "having geared the business to an expectation of a much stronger start in terms of sales to 2007 which did not eventuate".
Comvita blamed the high dollar and dealing with significantly tightened regulatory standards for most of its products in main export markets.
These new regulatory regimes meant the company had to undertake additional testing, manufacturing and quality-control procedures at considerable cost.
Implementing new standards resulted in delays in getting some product lines to the market.
Comvita said the delays were now largely behind it and most were of a one-off nature.
No dividend was declared as the company said it was in an expansion phase.
It expects to restore dividends following a positive result for the full year.
Comvita said Food and Drug Administration approval in the US and Canada for its advanced honey-based wound dressings had opened up the US$2.3 billion North American market via its strategic partner Derma Sciences.
Comvita shares closed yesterday at $3.20. They have come down from $3.90 in June.
- NZPA
