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Cedenco annual profit down 4 percent on record in 2001


Friday 22nd November 2002

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Food ingredients manufacturer Cedenco posted a 4 percent fall in annual profit today to $4.06 million.

Managing director Richard Lawrence said the net result was in line with expectations, despite being lower than last year's record profit.

However, he warned the coming season would be more difficult because of the strengthening of the New Zealand dollar, and potentially by the worsening drought in Australia.

Cedenco's sales for the year ended September rose to $28.55 million, from $25.09 million the previous year, boosting total operating revenue by about 11 percent to $30.05 million.

The company has not announced a dividend, but said in a statement today that directors will review the 2002 dividend closer to the annual meeting.

Higher revenue was boosted by increased sales of powders and purees into Asian markets, Mr Lawrence said.

Pre-tax earnings for the Australian business of $1.49 million were down from last year's record $1.95 million.

Cedenco's New Zealand and Australian businesses have invested significantly in plant and equipment to increase capacity, with the work expected to be completed by the start of the new season's production, Mr Lawrence said.

The result included one-off costs associated with a change in ownership of the Australian joint venture operation, and costs associated with the departure of founder and long-serving managing director Dean Witters.

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