Comvita's overseas strategy pays off

Comvita has posted a 10 per cent gain in its full-year profit compared with the previous year.

The NZAX-listed bee products firm yesterday reported a net profit of $1.26 million, up from $1.15 million the year before.

The profit was $320,000 below Comvita's prospectus projection, but above the $1.1 million revised forecast issued in November.

Earnings per share were 11c, down from 12.5c the previous year.

A fully imputed final dividend of 2.1c will be paid. Total revenue for the year was up 22 per cent on the previous year to $27.6 million. Earnings before interest, tax, depreciation and amortisation (ebitda) rose 27 per cent on last year to $3.64 million.

Comvita chairman Bill Bracks said early sales of manuka honey-impregnated wound dressings had been below expectations, because of regulatory delays and the conservative nature of the medical industry.

But Comvita's strategy of having its own people in overseas markets rather than working through distributors was paying off.

Comvita's operations in Japan made a profit this year, Hong Kong broke records and Australia traded strongly. The first Comvita store opened in Shenzhen, China, in December.

Said Bracks: "Diversity in those markets provides a broad earning base and reduced reliance on the outbound tourism market, which can be subject to unpredictable international events."

- NZPA