The company this week reported a $2.3 million profit before tax in the year to June 30, a $400,000 improvement on the previous year, due in part to contributions from the recent purchase of part of the mid-micron wool business from PGG Wrightson.
Chairman John Nichol said New Zealand Merino (NZM) recorded sales of more than $100 million for the first time, of which $53 million was from direct supply contracts between fine wool growers and customers.
"The NZM company continues to be proactive in recognising the need for innovation and change in the industry, and the need for investment in marketing and differentiating our unique product," he said.
"Our merino and mid-micron grower clients and our shareholders are now benefiting from the considerable value generated from the company's approach."
NZM was evenly owned by merino growers, through Merino Grower Investments, and PGG Wrightson and Mr Nichol said 50% of after-tax profits would be paid to shareholders.
He said the company was financially "robust", which placed it in a strong position in the current economic climate, while also able to invest in marketing, research, development and innovation.
Chief executive John Brakenridge said the growth of supply contracts provided stability and subsequently confidence to the industry, for both growers and manufacturers.
During the year, the volume of wool supplied in branded forward contracts increased significantly, he said.
Total assets were $10 million and shareholder funds were $7.3 million. Mr Brakenridge said NZM had no term debt.
