Comvita owns 30 per cent of the honey it uses and plans to grow that share in the coming year, shareholders at this week's annul meeting learned.

On top of a manuka honey supply shortage the Australian market remained highly competitive through 2012 2013, resulting in a February downgrade for the finaincial year.

Comvita's Visitor Centre in Paengaroa.

Comvita reported a reduced net profit after tax of $7.4million in May, down from $8.2m the previous year, for the financial year ending March 31.

Profits are affected by constrained honey supply and costs for honey rising 50 per cent year on year. Revenue rose to $103.5m, up $74m or 7.8 per cent on 2012.

Chief executive Brett Hewlett says the acquisition of a Whanganui-based apiary business during the year lifted its share to 30 per cent.

One of the company's key focuses this financial year is continuing to shore up the honey supply chain it relies on, including increasing apiary ownership, says Brett.

Comvita is also looking to increase ownership of apiaries and will continue support for growing north asia sales during the year.

The Paengaroa based bee products company will also be further expanding its product range including new ingredient platforms.

The company will also be leveraging the fresh olive leaf extract clinical trial results and there will be more trials work.

Clinical trials at the Liggins Institute at the University of Auckland found the compnay's olive leaf extract helps improve the way insulin is secreted and works in overweight men.

Comvita's five per cent stake in the American company Derma is working well. The licensing agreement gives Derma exclusive worldwide rights to manufacture and sell its range of Medihoney woundcare and skincare products to the professional and medical markets, and Comvita retains the worldwide rights to sell the Derma products over the counter.

Derma Medihoney sales are now NZ$19 million a year from which Comvita receives a royalty stream of about $1.2m a year.

Chairman Neil Craig says the company balance sheet is in good shape and they have maintained the dividend at 50 per cent of net profit after tax.