PharmaZen first-half profit rises 23%, restrained by strong kiwi, depreciation costs

Monday 5th September 2016

PharmaZen, the Christchurch-based animal and human nutrition manufacturer, said first-half profit rose 23 percent as an increase in sales was offset by the impact of a strong kiwi dollar and higher depreciation charges.

Profit was $290,000 in the six months ended June 30, from $230,000 a year earlier, said the company whose shares trade on the Unlisted platform. Turnover rose to $3.71 million from $3.63 million.

Shares of PharmaZen, which first listed in July 2004, last traded at 7 cents, valuing the company at $11.2 million. That's up from 4.5 cents a year ago, although the stock trades infrequently. The less onerous disclosure rules for Unlisted compared to the NZX means the first-half results were covered in a one-page media release. It is predominantly owned by investors in Dunedin and Otago.

PharmaZen's trading arm is Waitaki Biosciences, which has been making and globally marketing natural nutritional products for 20 years, according to its website. Its products include calcium supplements, a mussel extract marketed for joint health, and extracts from blackcurrants and kiwifruit.

“The dollar aside, we continue to make progress in many areas of the business with the main highlight being the completion of all regulatory hurdles for the solvent extraction plant, with the first pilot production scheduled for September,” said chief executive Craig McIntosh. "“We have received strong interest across the intended range of products and expect to be selling commercial volumes in the fourth quarter.”

BusinessDesk.co.nz

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