By Phil Boeyen, ShareChat Business News Editor
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Monday 26th November 2001 |
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The profit result is a 75% improvement on last year's $2.41 million for the Gisborne-based firm, while revenue at $27 million was more than twice last year's $12.9 million.
Cedenco says the big leap in sales is largely due to the successfully commissioned Individually Quick Frozen (IQF) plant in Gisborne.
"This, as well as increased vegetable powder sales, and a significantly improved result from the Australian tomato processing business; were the main drivers of the increased earnings for the group," says chairman Basil Logan.
"Equity earnings before taxation from the Australian business, which form part of operating revenues, increased by 156% to $1.95 million, which is the best result achieved so far from this business."
The company says trading conditions remain favourable with the low New Zealand dollar, and reports that no impact has been felt so far from recent world events relating to September 11.
"Market demand for Cedenco ingredients is continuing to increase and the processing facilities are expected to run at capacity next season," says Mr Logan.
"The result is very pleasing and is comfortably ahead of the earlier prediction of $3.8 million."
No dividend has yet been declared and the company says it will review the matter of dividend closer to the annual meeting.
The profit result should put a smile on the face of Cedenco's new majority shareholder, California-based S K Foods, which bought the stake from Brierley Investments (NZSE: BRY) in May.
Cedenco appointed a new CEO, Richard Lawrence, last month. Mr Richards replaced long-serving boss Dean Witters, who is continuing as an executive director responsible for business development.
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