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

BUNNINGS BOSS JOHN GILLAM QUITS WESFARMERS

THE man behind Bunnings' home improvement domination has resigned from his role in charge of the retailer.

...

NOVOTEL SALE REFLECTS HOT BUYERS' MARKET

AFTER two decades in the hands of a private syndicate, The Novotel Melbourne Glen Waverley has been sold to the Sy...

SUPERLOOP ONE STEP CLOSER TO BIGAIR ACQUISITION

BIGAIR (ASX:BGL) shareholders have given Superloop (ASX:SLC) the green light to acquire the telecommunications com...

RINEHART-BACKED OIL AND GAS EXPLORER SUES VICTORIA FOR $2.7 BILLION

AN oil and gas explorer backed by Gina Rinehart (pictured) is suing the Victorian state government for more than $...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter