INDEPENDENT NEWS

Australia's Capilano Honey profits bolstered

Published: Mon 7 Aug 2017 08:44 PM
Australia's Capilano Honey profits bolstered from capital gain in asset sale to Comvita JV
By Rebecca Howard
Aug. 7 (BusinessDesk) - Australian honey maker Capilano Honey's joint venture with Comvita has had an immediate, if unrealised, benefit for the Queensland-based company's bottom line.
The two honey companies teamed up last year to create Medibee Apiaries in Australia to produce Leptospermum honey, commonly known as manuka, for medical and natural health products. In July last year, Capilano realised a capital gain of A$2.1 million following the sale of its manuka beekeeping assets into the joint venture with no tax attributable to the capital gain on the asset sale, it said. The total assets it sold into the joint venture were worth A$9.2 million.
Capilano Honey today reported a net profit of A$10.3 million for the year to June 30, up 9 percent on the prior year, it said in a statement to the ASX.
Medibee Apiaries was the single largest supplier of manuka to Capilano in the 2017 financial year, with purchases from the joint venture amounting to A$1.2 million. As of June 30, Capilano owed A$659,524 to Medibee Apiaries.
Medibee's revenue was A$1.6 million but its expenses were A$1.8 million, leading to a net loss of A$245,844.
The joint venture is focused on increasing the production and security of the manuka honey supply.
Capilano said strategic acquisitions have been made to increase the floral resources and the business is focusing on increasing hive numbers to fully utilise current floral resources. It noted profitability was impacted by a low production season but it remains confident in the joint venture's "future positive earnings potential".
The ASX-listed shares were unchanged at A$16.50 and have dipped 3 percent so far this year.
Partner Comvita is scheduled to report annual earnings last this month and has prepared the market for soft result on weak trading and a poor honey harvest. The NZX-listed company's shares slipped 0.7 percent to $5.96 today, and have slumped 25 percent so far this year.
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy
By: Statistics New Zealand
Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate
By: Joint Press Release
Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea
By: Ministry For Primary Industries
New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand
By: IDC New Zealand Ltd
Whale-watching By Satellite – Follow Their Travels Online
By: University of Auckland
Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million
By: Commerce Commission
Public Transport Distancing Requirements Relaxed
By: Ministry of Health
New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs
By: New Zealand Hemp Industries Association Inc
One In 14 Employed People Report High Risk Of Losing Jobs
By: Statistics New Zealand
ASB Quarterly Economic Forecast Shows NZ Economy Doing Better Than Expected, But Challenges Remain
By: ASB
Successful Bridge Repair Opens Two Additional Lanes To Traffic
By: New Zealand Transport Agency
Engineers Assess Damage To Auckland Harbour Bridge After Truck Strike
By: NZ Transport Agency
Motorists Urged To Avoid Damaged Auckland Harbour Bridge
By: NZ Transport Agency
Harbour Bridge: Public Transport A Great Option And Plan Ahead
By: Auckland Transport
Second Harbour Crossing Needed Now, More Than Ever
By: New Zealand National Party
View as: DESKTOP | MOBILE © Scoop Media