KEY POINTS:
Natural healthcare products company Comvita has reported a fall in net profit to $1.53 million for the year to December 31.
That compares with $1.59 million the previous year, and was achieved on revenue of $39.4 million, up from $31.3 million in 2005.
Comvita chairman Neil Craig said 2006 was a watershed year for the company, during which a substantial platform was built for growth through to 2010, rather than concentrating on the bottom line.
Investments were made in human resources, infrastructure and acquisitions to set Comvita up to achieve its vision of sales of $100 million by 2010.
Demand for Comvita's natural health products was strong overseas, with exports tracking at 66 per cent of total sales, Craig said.
That had resulted in a 26 per cent increase in revenue and 14 per cent growth in earnings before interest, tax, depreciation and amortisation (ebitda) to $4.7 million.
It was achieved despite the headwind of a stubbornly strong dollar.
Chief executive Brett Hewlett said 2007 margins and bottom-line profit were expected to be above 2006.
Comvita remained on the lookout for complementary acquisitions.
Comvita's stake of more than 10 per cent in US licensing partner Derma Sciences and its agreement with WaikatoLink, the commercial arm of the University of Waikato, for manuka honey patents would help the company expand its high-margin wound care product portfolio, Hewlett said.
A final fully imputed dividend of 3c takes the full year dividend to 5c.
- NZPA
