New Zealand kiwifruit marketer Zespri has increased its profit forecast for the year by more than NZ$13 million, the New Zealand Herald reported.

The company said the lift in expected profit to NZ$32-35 million for the year ended March 31 came about because a NZ$13.9 million accounting provision entered in 2012-13 relating to Chinese subsidiary ZMCC had been released.

"Our assessment is that all issues relating to Zespri's subsidiary in China, ZMCC, have now been resolved with the Shanghai Court, therefore there is no justification for Zespri to hold the accounting provision," the company was quoted as saying.

Zespri chief financial officer Dave Hazlehurst told the publication NZ$10 million in "illegal gains" owed to the Shanghai court had been paid by former importer Shanghai Neuhof, which like ZMCC was also found guilty on smuggling charges.

"We've invested in people and support structures and there's a very clear message going to all our employees what the compliance system is and how we work within it," Hazlehurst was quoted as saying.

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