Wools of New Zealand (WNZ) has bounced to a net after tax-profit of $1.5 million in the year to June, despite factors such as the Brexit result, the high New Zealand dollar and reduced Chinese demand.
Established in 2013 with farmer capital, the grower-owned sales and marketing company's maiden profit was on the back of a 16 per cent lift in wool sales, helping push revenues past $30 million for the first time to $31.5 million.
Operating profit increased to $681,000, a 242 per cent increase of $1.16 million over the prior year's loss of $493,000.
The company transacted 5.5 million kg of shareholders' wool during the year, reflected in an increase in Wool Market Development Commitment (WMDC) levy income to $2.6 million, from $2.2 million in 2015.
Chairman Mark Shadbolt said the WNZ EU Ecolabel lambs wool contract was again a highlight of the year.