Capilano Honey’s profits continue to growth and strong exports
Australian honey producer Capilano Honey has continued to increase its profits, reporting a net profit before tax of AUD$5.12 million for the first half of the 2015 financial year.
This compares with AUD$2.45 million for the same period last year. The profits exclude the insurance reimbursements from the fire at the Richlands site. Revenue increased 34 per cent to AUD$57.9 million due to growth in domestic and export markets.
Capilano said international interest in the quality premium range of retail products it markets has continued to grow, with expanding ranges in the Middle East and Asia. Overall export sales have increased 19 per cent in the year to date.
Capilano reported that its Net interest bearing debt was reduced to AUD$4.29 million, down from AUD$7.59 million at the end of June 2014 and AUD$9.75 million for the same period to December 2013. The Company said its debt had been associated with working capital requirements (inventory) and that it continues to improve its gearing using incoming cash flows.
Honey cost rises
Capilano said the average cost of domestic supplier honey for the 6 months to 31 December rose to AUD$4.61/kg compared with AUD$3.49/kg for the same period last year. The Company said this increase reflected heightened competition in the market as packers compete for supply in a period of reduced domestic production. Capilano said the increases in honey price have delivered its beekeepers a “better reward for their effort and will help maintain the continuing viability of their businesses”.
Capilano reported that raw material cost increases had been effectively recovered from the market with wholesale price increases. Recent rains brought welcome relief to many production regions and Capilano said this relief would help “orchestrate a return to better seasons in the future as trees respond with increased flowering patterns”.
Capilano acquires honey packer
The Company recently announced the acquisition of Victorian honey packer, Yellow Pty Ltd (trading as Chandlers Honey). It said the assets acquired and skilled staff within this honey business would be deployed to recommission Capilano’s existing factory in Maryborough, Victoria.
The reopening of this facility will expand Capilano’s operational capability and will prepare the company to meet future sales targets, whilst absorbing an increase of packing demand of over 1,000 tonnes as a consequence of the acquisition.
The growth continues a trend for Capilano, which has seen its profits increase compared to the prior corresponding period . Australian Food News reported in February 2014 that Capilano had seen its profits more than double.
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