CAPILANO SHARE PRICE BUZZES AFTER RECORD PROFIT

Written on the 8 February 2016

CAPILANO SHARE PRICE BUZZES AFTER RECORD PROFIT

A FOCUS on innovation and quality control has led to another sweet interim result for Capilano Honey (ASX:CZZ), with profit up 52 per cent to $7.77 million.

The Brisbane-based company's share price rose 8 per cent today to $20.79 amid the buzz of another record half-year.

Capilano Honey also secured a bigger share of the market, with revenue up 15 per cent to $67.1 million compared to $57.9 million in HY15.

Export sales have driven performance with growth of more than 32 per cent and sales to Asia up 53 per cent.

Capilano managing director Ben McKee says the company has been able to combat the rising price of honey by reviewing its strategy.

"Capilano's business continues to grow as we concentrate on the core strategies of meeting our consumer's expectations, leading innovation and delivering consistent premium quality in both flavour and packaging," McKee says.

"The average cost of supplier honey for the past six months to 31 December has risen to $5.64/kg compared with $4.61/kg for the same period last year, reflecting heightened competition in the market and sustained lower primary production.

"Changes in sales mix and wholesale price increases has largely recovered the rising cost of raw materials."

Capilano has bolstered its honey stock to 4,228 tonnes from a historical low of 2,223 tonnes for the same period last year. The inventory value equates to $32.6 million, securing its ability to meet new sales demand.

The company recommissioned a factory in Victoria to expand its operational capability, as well as deliver a range of premium glass jars and non-honey products.

Retail honey production will be relocated to the Maryborough site, to improve retail packing capacity at its Brisbane headquarters.

"Greater levels of inventory and continued interest in our natural wholesome products, in conjunction with new product ranging, should see Capilano continue to prosper over the remainder of the financial year and into the future," McKee says.

The board has continued its practice of only considering a dividend annually.

 


Latest News

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

WOOLWORTHS CLAIMS LEGAL VICTORY IN STOUSH WITH LOWE'S

SUPERMARKET giant Woolworths (ASX: WOW) has been given the go-ahead to sell its Masters property assets after winn...

PRICELINE STORE ROLLOUT BOOSTS API'S FULL YEAR PROFIT FORECAST

Australian Pharmaceutical Industries (ASX: API) has booked a rise in half year net profit of $29.1 million on the bac...

CITY DWELLERS SETTING EYES ON REDCLIFFE AS PROPERTY SEACHANGE BECKONS

IT MAY be cool by the sea at Redcliffe, however strong sales at Kyko Group's Mon Komo development prove that t...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter