Comvita sees tough times ahead

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New Zealand honey and food supplement company Comvita, which this year posted a record net profit of $5 million, says the year ahead will be challenging.

Chairman Neil Craig told the annual shareholders' meeting in Paengaroa yesterday the firm expected stronger second half results would buoy up its full year results for 2011.

''It is too early to make a forecast of profits for 2011 except to say it is already clear that the market environment at this time is generally more sluggish than we had anticipated,'' said Mr Craig.

''As was the case in 2010, our result will be weighted heavily to the second half of the year and the Northern Hemisphere winter season.''

The first three months of this year were hit by a slower start to the southern hemisphere winter, he said, with no repeat of last year's ''swine flu tailwind''.

The company was also feeling the effects of the continued resurgence of the NZ dollar against all currencies and in particular, the pound in Britain ''where it is extremely difficult for Comvita to turn a profit.''

Comvita shares were trading today down 10c to $2.15, valuing the company at $64 million.

- © Fairfax NZ News