New Image Group Ltd, a seller of colostrum and other health products, reported a strong profit and said it is selling its first infant formula product in Asia.
The company had earlier signalled a strong interim profit and today it reported net profit after tax rose 277 percent to $5.59 million in the six months to December 31. The profit was achieved on revenue of $40.95 million, up 150 per cent.
The company declared a maiden interim dividend of half a cent a share, payable on April 3. The dividend does not have tax imputation credits.
The company markets products with colostrum, the first milk produced during pregnancy, from pasture-fed cows in New Zealand.
New Image said its first infant formula product fortified with colostrum, will be launched in Hong Kong next month, through a new Hong Kong joint venture, Golden Dairy (HK) Ltd. New Image has a 60 per cent interest in this company.
The product is being produced at the company's plant in Auckland and will also be sold through other Asian outlets.
Last year an infant formula scandal in China enveloped New Zealand dairy giant Fonterra.
New Image said it has received significant enquiries for infant formula from the Asian market.
"As a consequence, a strategic business opportunity arose." The company expected to make a profit in excess of $80m in the full year.
Strong trading conditions were experienced during the first six months, especially in the company's Malaysian direct sales operation. The company's ready-to-drink nutritious colostrum beverage will launch in New Zealand and Asia later this calendar year.
This is the first time colostrum will have been sold in liquid form in international markets.
