Vodka and gin producer 42 Below Ltd has posted a first half net profit since it went public last month. The company reported net profit of NZ$711,000 (US$438,000), but the figure is boosted by shareholders agreeing to write off loans to the company.

42 Below listed on the New Zealand stock exchange on 15 October after it raised NZ$15m in its initial public offering of shares. In a statement, the company said that "debt forgiveness" income of NZ$1.16m resulted from major shareholders agreeing to turn NZ$820,000 of loans into share capital. The remainder will be written off.

Before tax and the one-time gain from the debt forgivness, the company lost NZ$445,000. Sales for the half-year to 30 September were NZ$1.09m, split between the two quarters at NZ$450,000 and NZ$640,000.

The company believes that the third quarter should meet the quarter-on-quarter sales growth of 42%.