Natural healthcare company Comvita has posted a more than six-fold improved profit for the year, defying a global economic downturn and shrinking debt.
The Bay of Plenty company, which specialises in honey health products, reported an audited net profit after tax for the year ended March 31 of $5.01 million, compared with a $770,000 profit in the previous year.
Earnings before interest, tax, depreciation, amortisation and fair value movements of financial instruments for the same period were $10.98 million on sales of $84.93 million, up 19 per cent on the previous year's $71.4 million.
Comvita's sharply improved financial result was due to a continuing strong trend in sales and improvements in overall operating efficiencies, said Comvita chairman Neil Craig.
Sales grew in all markets except a recession-hit United Kingdom, where severe competition and the British pound at a 25-year low against the New Zealand dollar saw virtually no return.
Comvita reduced bank borrowings significantly during the year after borrowing heavily to buy in 2007 and 2008, Mr Craig said. In February Comvita was boosted by $3.25 million when it completed a global licensing agreement for Medihoney woundcare products with Derma Sciences.
Shares in Comvita were up 15c to $2.50 on the NZX yesterday.
- NZPA
Comvita reports $5m profit
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