New Zealand chip maker Mr. Chips reports first half net profit rose 300% year on year to NZ$1.33 million with its pre-tax profit up 400 percent to NZ$1.99 million. Sales rose 20 percent to NZ$22.4 million.
Chairman Graeme Edwards said the company had reached a stable critical mass and was not prepared to gain sales at unrealistic prices. Edwards criticized the local and central governments, saying virtually every impediment to exporting came from them.
"While the domestic market remains healthy, our growth is principally a result of increased exports to Australia,” he said. "It is ironic that despite the government contemplating moves to encourage exports most of our difficulties are the result of government policies.”
Edwards said the sharp turnaround in profit has been achieved by increased gross margins, largely as a result of the increased sales, and the company was budgeting that recent gains would be maintained for the full year and the following year.