Biotechnology company PharmaZen, which was founded in Dunedin, has credited investment in a new plant for underpinning increased volume, revenue and before-tax profits for its year's trading to December.
After being hit hard by the strength of the New Zealand dollar in past years, PharmaZen was now seeing better returns in its foreign exchange dealings.
PharmaZen supplies animal and health products.
It was founded in Dunedin and later moved to Christchurch, but was "relatively unscathed" by the September and February quakes, PharmaZen's chief executive Craig McIntosh said in a statement this week.
"While the Canterbury earthquakes in September and February provided some challenges, damage to the site was largely external," Mr McIntosh said.
For the year to December 2009, PharmaZen booked turnover of $5.2 million and after-tax profit of $186,088.
For the year to last December, turnover increased 29% to $6.27 million.
Before-tax profit was up 160% to $482,338.
Mr McIntosh said investment in the new plant in recent years was starting to pay dividends.
There had been significant increases in efficiency.
"Volumes in production terms were up by 30% last year, but because of our recent investment in the plant we are putting product through at less than two-thirds the cost of 2005, which is a significant achievement given rising costs," Mr McIntosh said.
While the biggest challenge for PharmaZen was still the strength of the New Zealand dollar, the company was no longer dependent on the dollar to be profitable.
"Compared with 2009, the New Zealand dollar was up 13% against the United States dollar and 20% against the euro in 2010," Mr McIntosh said.
He also highlighted several initiatives taken by the company. These included installation of a 200sq m onsite freezer, a new dry side plant and a $250,000 investment in new product clinical trials, co-funded by the Foundation for Research Science and Technology.
PharmaZen trades on the Unlisted exchange. It will have its annual meeting in Dunedin on May 27.
