Comvita expects sharp fall in full year profit
Better last quarter results have not been enough to save natural healthcare company Comvita from a sharp fall in full year results.
Hot Topic
EARNINGS
Better last quarter results have not been enough to save natural healthcare company Comvita from a sharp fall in full year results.
For the financial year finishing today, the company said it was expecting the reported result to be in a range between a $400,000 profit and a $200,000 loss on forecast sales of about $81m.
That compared with a net profit after tax of $5m and sales of $84.9m in the previous financial year, Comvita said today.
On a normalised basis, the forecast range for net profit was between $2.8m and $3.4m, compared to a profit of $5.7m a year earlier.
Several one-off items accounted for the difference between the normalised and reported results.
The main factors were a non-cash tax expense of $1.5m after tax after a change to the law on depreciation on buildings, an already announced and provided for expense of $2.2m after tax for the defence of a medical patent in Britain, a write down of intangible assets of $740,000 after tax and the revaluation of warrants held in Nasdaq-listed Derma Sciences of $950,000 after tax.
The sales trend and profit for the last quarter were much improved, but the sales and profit numbers for the full six month period were lower than the same period in 2010.
"It has proved to be too difficult to make up for the poor results in the first half," Comvita said.
"Problems were experienced with a soft Australian retail market further impacted by the mild southern hemisphere winter and the Queensland floods."
Full results were to be published on May 20.
NZPA
Thu, 31 Mar 2011
Thu, 31 Mar 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Comvita expects sharp fall in full year profit
13528