Comvita sales ahead of last year

Health products company Comvita said year-to-date sales were well ahead of the same period last year, although foreign exchange contracts would prevent it from taking advantage of a recent fall in the New Zealand dollar.

Speaking to investors at the firm's AGM, chairman Neil Craig said sales were currently tracking 16 per cent ahead of the same period last year.

But forex contracts at higher than current levels, along with higher staff costs, would likely lead to a flat first half.

"At this stage we expect a reasonably flat six-month result relative to 2005," Mr Craig said.

Prospects for the second half were better, with foreign exchange cover contracts expiring and recent investment in Comvita's export markets and in US-based Derma Sciences likely to lead to a full-year result ahead of 2005.

The natural healthcare products company posted a net profit of $1.59 million for the year to December, up from $1.26m the previous year, following strong offshore growth.

Chief executive Brett Hewlett said Comvita had a target of $100m in sales revenue by 2010, backed by strong growth in the natural healthcare market, increased investment in research and development and further global acquisitions.

Comvita aimed to have a minimum of 25 per cent of its revenue in non-bee products by that date.

Mr Hewlett said Comvita targeted some of the largest and most progressive categories of the natural healthcare industry, particularly wound care, worth an estimated $1 billion per annum in the US alone.

Other categories included immune health, digestive health, anti-inflammatory and general vitality products.

Shares in Comvita touched a year high of $2.90 on Friday before closing at $2.86.

- NZPA