2007 Sales Revenue a Record for CER Group
5 February 2008
2007 Sales Revenue a
Record for CER Group
Statement made by David Warrick, Managing Director, CER Group Limited
* Group 2007 full year sales up 31% on 2006
* Expanding Australian commercial agricultural markets for Certified Organics
* Strong international festive season for New Zealand Nature
* VRM contribution continues to grow
CER Group Ltd (CER) rounded off 2007 with a record final quarter, ending 31 December with sales of $3.9million, up 40% on the fourth quarter of 2006.
The Group’s full year performance showed a considerable uplift overall with sales revenue of $8.1 million, up 31% from $6.2 million in 2006.
The strong result for fourth quarter sales was driven by continued growth in both of the existing businesses, NZ Nature and Certified Organics. The Group’s new acquisition in 2007, Australian sustainable environmental management company VRM (Vital Resource Management), delivered a highly encouraging $750,000 of sales in the fourth quarter, bringing its contribution to sales for the second half of 2007 in at just over $1million.
Certified Organics’ fourth quarter sales of $400,000 were three times the level achieved in the same period in 2006. Overall, the full year sales for Certified Organics were up 15%, to $1.68million. A key contributor to this was the initial stocking orders for Certified Organics’ BioWeed Control product which recently received Australian regulatory approval, enabling the product to be marketed to the Australian viticulture industry.
Despite the adverse market conditions and high exchange rate affecting all New Zealand exporters, New Zealand Nature returned pleasing full year sales of $5.3million, up 13% on 2006. NZ Nature achieved overseas sales growth of 17% in the fourth quarter, driven by particularly strong demand from the UK and continental Europe.
The Group expects the momentum delivered by VRM to continue in 2008. Sales are largely generated from VRM’s microbially-enhanced liquid fertilisers which are being sold to the Queensland sugar and banana growing industries. These products allow growers to reduce fertiliser input quantity and cost and enhance environmental outcomes through reduced nutrient run-off into rivers and the Barrier Reef.
The Group has sound strategies in place for continued, accelerated growth in 2008. It is anticipated that the full financial year announcement will be made at the end of this month.