Charlie's Group reported a $1.9 million net profit for the six months to December, as the beverage company benefited from a property sale and strong sales growth in Australia.
Without the $1.2m gain on the sale of the company's Henderson property, net profit for the half year would have been $700,000, compared to a loss of $700,000 a year earlier.
In New Zealand, a decline in sales reflected a product rationalisation programme, the economic climate and the discontinuation of a Redbull distribution agreement, Charlie's said today.
Non-performing lines had been deleted to focus on profitable products, albeit with a marginal loss in volume.
A new product development process continued and was on track to add to the company's portfolio which would replace the sales lost to put the New Zealand operations back in growth.
In Australia sales were up 37 percent to a record $3.3 million for the six month period.
Overall, sales revenue for the six months was unchanged from a year earlier at $15.5m.
Charlie's said total reported gross sales for the period under review were $16.8m, down 2 percent on a year earlier, but like-for-like sales -- excluding income from the Redbull distribution agreement which ended in 2008 -- were consistent with the previous year.
Operating earnings before interest, tax, depreciation and amortisation (ebitda) were a record $1.75m, excluding the gain on the Henderson sale, 60 percent of it generated in Australia. That compared with a $100,000 loss a year earlier.
Positive operating cash flow, along with proceeds from the property sale, had allowed the group to reduce debt by $2.4m to $4.3m over the reporting period, the company said.
The group's debt-to-equity ratio dropped from 53 percent a year ago to 27 percent at December 31.
Charlie's share price was up 0.4c at lunchtime to 10.1c.
NZPA