Personal care and hygiene product maker Asaleo has plans to expand into the nappy market, as it remains on track to increase full year profit.
AAP reports that Asaleo chief executive Peter Diplaris told the company’s annual meeting that net profit growth for this year should be around the low-to-mid single digit level.
“We believe the marketplace will continue to be challenging and our outlook is based upon management’s confidence in the company’s plans to deal with these challenges,” he said.
According to AFR, Diplaris said Asaleo wants to expand into the nappy market which is currently dominated by Kimberly-Clark’s Huggies brand.
Asaleo will do this through its Treasures brand which is the top selling nappy in New Zealand.
In addition, the company will start to sell its products through a distributor in Papua New Guinea and will aim to sell its Tork brand of products in bulk to small businesses.
According to Diplaris, the company will spend about $15m on capital spending this year. It recently spent $115m on changes to its tissue manufacturing plant in Melbourne.