A turnaround in all aspects of its business has yielded food ingrdients manufacturer Cedenco Foods a $1.38 million net profit for the year to September 30. Last year the company lost $1.9 million
Although revenue was half what it was in 1997, the company made $567,000 on its Gisborne operationsbefore equity accounting an $811,000 profit from its 50 per cent share of tomato paste maker Cedenco Australia. A shortfall in Northern Hemisphere crops and a favourable exchange rate helped the profitablilty of the joint venture which processed a record 115,000 tonnes of tomatoes to make half the total Australian production of tomato paste.
Managing director Dean Witters said a a modest expansion is expected to further improve economies of scale and profitability. A year ago Cedenco tried to sell its stake in the Australian company. In Gisborne Cedenco is adding a plate freezer to produce new lines including frozen fruit, purees and organic products. Cedenco shares closed down 5c at 65c yesterday.
