The country's largest fine wool marketing company, New Zealand Merino, has reported a steady end-of-year profit before tax of $1.9 million for the year ended June 30.
It was $100,000 lower than the previous year's profit, but reflected a decision to increase spending on marketing and innovation.
The result represents a 28% return on an average shareholder's funds.
Total revenue was $95 million, representing about 85% of the country's merino wool sales.
Chief executive John Brakenridge said in a statement contracted sales of wool made up over 50% of New Zealand Merino (NZM) sales, providing stability to the industry and confidence for growers.
He said the strong result would help NZM - jointly owned by growers and PGG Wrightson - through difficult times.
"The financial position of the company is robust and places us in a strong position to work through the current financial environment."
NZM was launched in 2001, offering an integrated approach to sales, marketing and research of New Zealand merino wool.
While contracts made up a large percentage of NZM's business, Mr Brakenridge said moving its auction business to Melbourne four years ago had also provided benefits.
A record number of buyers bid on the NZM catalogue during the year, including 12 not represented in New Zealand.
During the year, NZM bought the fine edge of PGG Wrightson's mid-micron business, which Mr Brakenridge said would lift volumes of wool handled a further 30%.
Company assets were $9 million, shareholders' funds $6.9 million and NZM had no term debt.
