By LIBBY MIDDLEBROOK
Increased market share has fattened the balance sheet of food ingredient manufacturer Cedenco Foods.
The Gisborne-based company generated after-tax profits of $413,000 for the six months to March 31, 2000 - a vast improvement on its $546,000 loss for the last corresponding period, driven by fruit shortages in Australia.
Chairman
Basil Logan said Cedenco had boosted its New Zealand market share during the half-year period, particularly in vegetable powder. "We've done a lot of work developing the local market and it's starting to pay off."
Cedenco's powder products are targeted at industrial food manufacturers.
Mr Logan expected the company to improve its net surplus before tax to $3 million for the 1999-2000 year from $2.21 million in the previous year, with revenues improving during the final six months, due to increased sales.
The company's $4 million Gisborne-based Heinz factory development is on track to be completed near the end of the year.
Sales revenue for the period increased to $3.99 million, up 80 per cent on last year's $2.22 million. Equity earnings increased 189 per cent to $371,000 from $128,000 and earnings per share were 2.6c from losses of 3.5c.
The company, 48 per cent owned by Brierley Investments, expects to declare a dividend for the 2000 financial year in December.
