Outstanding sales have seen Paengaroa-based natural health products company Comvita Ltd announce record earnings for the year ended March 31.

Net profit after tax is $10.2m, a 28 per cent increase from $8m in 2014.

Securing honey supplies is paying off, say Comvita. Picture: Supplied.

Sales rose 32 per cent over the year to $152.7m, compared with $115.3m in 2014, while earnings before interest, tax, depreciation and amortisation are $23m – up from from $17m in 2014, an increase of 35 per cent.

'These results comfortably exceed the company's earlier forecast and demonstrate Comvita's sales momentum is strong,” says Chairman Neil Craig.

'Our investments in market development, infrastructure and systems have provided, and will continue to provide, sustainable earnings growth.

'Our balance sheet is in good shape, having successfully completed a $24.4m capital raising in December 2014.

'The proceeds have been used to reduce borrowings and further support a build-up of honey inventory, as well as affording financial capacity to consider further acquisitions.”

From the capital raising, $1.7m has been used to exercise Comvita's warrants in Derma Sciences, lifting Comvita's total shareholding of Derma to about four per cent and further securing the relationship, which provides access to the global medical honey woundcare market.

Directors are declaring a fully imputed dividend of 9 cents per share, payable on 26 June this year, for shareholders on the register on 19 June 2015.

This follows an interim dividend paid in December 2014 of 4 cents per share and takes the total, fully imputed dividend for the year to 13 cents per share. This increase in dividend per share is on a 24 per cent increase in total shares on issue.

'Sales, driven by record tourism numbers, and growth in the New Zealand market have been outstanding,” says Comvita CEO Brett Hewlett, 'along with sales in our second-fastest growing market of Australia.

'Globally, fresh olive leaf sales have shown 27 per cent year-on-year growth.

'Sales of honey-based products have risen sharply for the year based on increased availability of raw material, including the strategic benefits of the acquisition of New Zealand Honey Limited in July 2014.”

Whilst the margins on these honey products are lower than the previous year, Brett expects overall returns to increase going forward, as the company grows its higher value Comvita-branded product lines at a faster pace than lower valued grocery ‘honey in a pot'.