Cedenco Foods Ltd, the New Zealand ingredients manufacturer, has reported a 46% drop in net profits after tax for the first half of its financial year, to the end of March.

The group posted net profits of NZ1.3m (US$614,000), generated from operating revenues of NZ13m.

However, the group said in a statement that it expects a recovery in the second half: “Although the result is less than the previous half year result of NZ$2.39m (earnings after tax), the directors believe that the year-end result should be similar to the 2001 result of NZ$4.22m.”

In the meantime Cedenco, which is majority-owned by SK Foods of California, will not declare a dividend.