Comvita profit up on offshore growth

Health products company Comvita reported a 26 per cent jump in annual net profit, on the back of strong offshore growth.

The natural healthcare products company posted a net profit of $1.59 million for the year to December, up from $1.26m the previous year.

Earnings before interest, tax, depreciation and amortisation rose to $4.09m, from $3.64m.

Earnings per share rose to 12.3c, from 11c.

A final fully imputed dividend of 3 cents per share was declared, bringing the total dividends for the year to 5c a share.

Chief executive Brett Hewlett said the result was very good, given the strong New Zealand dollar and flat domestic market, and the outlook was for even better in 2006.

Mr Hewlett said sales for the first two months of the new financial year were significantly higher than the same period last year.

He said if the currency performed in line with predictions, Comvita should beat both 2005 sales and profitability this year.

"This will be driven by sales increases in all export markets, margin improvement at the operating level and an increased contribution from our wound care division," he said.

Comvita chairman Neil Craig said sales were up in all offshore markets, with export revenue now making up 60 per cent of the company's total sales.

He said the offshore growth was driven by a strategy to take greater control of the company's distribution channels.

On December 1 last year Comvita bought its British distributor, NZ Natural Foods, so it could boost its British presence and have more control over its launch into European markets.

In China and Taiwan, Comvita has rolled out 20 Comvita-branded retail stores, which are funded by local distributors.

After the year-end balance date Comvita signed a long-term exclusive licensing deal with US-based manufacturer and supplier of wound care products, Derma Sciences Inc.

Shares in Comvita were up 14c at $2.30 on the back of the result, having traded between $2.00 and $2.58 over the past year.

- NZPA