Kiwifruit processor Satara said its profit was up from last year but below expectations because of high levels of fruit loss.
The NZAX-listed co-operative said its full-year surplus of $3.6 million before tax and the payment of rebates to growers was up from $1.9m last year.
But itwas down from the $4.9m forecast.
The surplus was achieved on revenue of $55.5m, up 7.7 per cent.
Satara is paying a dividend of 5c a share and a rebate of 28c a tray. The rebate was the same as last year.
General manager Murray Gough said that given the high costs of fruit loss, the company has done reasonably well.
"Originally we forecast a surplus in the region of $4.9m, but then the true nature of the season kicked in."
Satara packed a record 11.5 million trays.
The orchard division's loss was reduced to $2m due to a restructuring of contracts for leased orchards.
Satara said its 20 per cent stake in Kiwi Produce Ltd, which specialised in pre-packing and marketing a wide variety of fruit in the Australian and domestic markets, had produced a strong return.
During 2006 Satara and Aongatete Coolstores Ltd formed a new avocado business called Bravo Avocado Company Ltd. The forecast for the coming avocado crop suggests Satara will be required to pack around 450,000 trays for Bravo in 2007/08 which will result in greater profitability in this area of business.
