PharmaZen posts record firsthalf profit after investments

AUCKLAND: PharmaZen, a manufacturer of plant and animalbased health supplements, made a record firsthalf profit as it reaped the benefit of earlier investments.

Earnings before interest, tax and depreciation jumped by more than $1 million to $785,000 in the six months to June 30, compared with a loss of $170,000 in the yearearlier period, the company said in a statement. Turnover increased 48% to $5.56 million.

PharmaZen, founded in 2001 by the late Dunedin entrepreneur Howard Paterson, posted an annual loss in 2017 in what it described as a ‘‘challenging year’’. It was hurt by major delays in installing a new 2000kg dryer which disrupted production, reduced its capacity for making highvalue products, and raised imanufacturing costs.

The Christchurchbased company has invested more than $12 million in new plant and equipment during the past five years. That has shifted its facility from a small freezedrying factory to a worldclass operation with the largest solvent extraction plant in New Zealand and the biggest freezedrying plant in Australasia, the company said.

Chief executive Craig McIntosh said the latest result is ‘‘extremely pleasing’’ and provides a glimpse of future growth potential.

‘‘Last year [2017]) was an exceptionally disruptive year with the culmination of multiple projects putting pressure on infrastructure,’’ he said.

‘‘The bulk of these projects have now been completed and we are starting to reap the benefits. Both the new multipurpose extraction facility and the expanded freezedrying facilities are now fully commissioned, operational and generating profit.’’

Mr McIntosh said the company continued to invest in research and development projects and had been awarded a US patent for one of its bone health products.

He also noted growth in the company’s botanical products. Firsthalf sales of its kiwifruit extract ActiPhen increased 250% over the same period in 2017. — BusinessDesk