Rising honey prices has given Capilano a significant profit boost during the six months to December 31.
Australia’s largest honey company Capilano’s half-year profit has more than doubled on the back of escalating honey prices in Australia and overseas.
The strong result saw Capilano’s shares jump 23.7 per cent to a record $4.90 around 2pm (AEDT) on Monday before losing some gains later in the afternoon.
The honey seller, which moved from the Bendigo exchange to list on the ASX in July 2012, says local and international retail markets are driving its profit growth.
Honey prices have risen significantly after drought and adverse weather hampered the Australian crop and limited production.
The average cost of supplier shareholder honey for the six months to December 31 was $3.49/kg compared with $3.36/kg for the same period last year, Capilano managing director Ben McKee says.
He says the company’s acquisition of West Australian rival Wescobee has also improved its retail sales mix.
“Domestic market share has again risen; assisted by the launch of a new pot-set honey, premium offerings in glass jars focusing on the provenance of honey and an expanded ranging of medicinal manuka honeys,” Mr McKee said in a statement.
He said export sales have grown thanks to greater ranging of branded products and wider distribution across Asia.
The company has recorded a net profit of more than $2 million in the six months to the end of December; 184 per cent increase from $731,036 net profit taken during the same period in 2012.
During September 2012, fire destroyed hundreds of tonnes of honey and damaged Capilano’s Richlands factory in southwest Brisbane.