Paengaroa-based honey and health products company Comvita has increased its full year profit estimate after recording a strong first half.
For the six months ending September 30, 2015, Comvita recorded an after tax profit of $3 million on sales of $91.1 million, compared with an after tax loss of $3.3million on sales of $59.7 million in the previous corresponding period.
Chairman Neil Craig said the July AGM had advised 2016 full year earnings would be at least 35 per cent up on the previous year. "With the strong result for the first six months we now expect our operating profit after tax to be in the range of $15-$17 million, up 46 to 65 per cent for the 12 months to March 3, 2016, compared to the prior year."
Recently appointed chief executive Scott Coulter said the result had been driven by strong growth in all markets on the back of strategic investment in supply security, better channel management and growth in sales of the Winter Wellness and fresh Olive Leaf categories.
"We are confident that, leveraging our premium brand position, our strong path to market and our continued focus on optimising profitability across all facets of the company, should result in the company continuing to deliver sustainable earnings growth into the future," said Mr Coulter.
Comvita recently made a strategic investment in listed company SeaDragon in order to acquire access to sustainable New Zealand-sourced Omega 3 fish oils. The company said retiring chief executive Brett Hewlett joined SeaDragon's board this month.
