Comvita - CVT

[Balance]

No, the high grades are not in short supply. I am a small commercial beekeeper. I have about 15 tonne of umf 15 and higher in storage with no Packers wanting to purchase. A big commercial honey storage company has 100s of tonnes with umf 10+ and higher with not much interest. The only honey being sold is from beekeepers who are so desperate to sell, that they will take any low ball offer.

Does not make sense then why high grade UMF prices are so high if there’s abundant supply around.

I used to buy Comvita UMF20+ 250g (as gifts when I did my Asian round) and they used to cost me $45 which I thought was outrageously expensive at the time! Now it’s over $100!

[nztx]

Stock turn once/year is horrendously low. Must mean some stock sits on the shelf for a long time. Means need more warehouse room required and extra cost of carrying it.
Lucky it has a reasonably long shelf life.


when the price drops - then red ink ? potentially a repeat of past history if so wiith CVT

High inventories and waiting the market out for demand to walk in the door - a potential
scenario for further disaster ? Where else have we seen similar plays ? :)

[winner69]

Banfield trying hard to find a buyer for the company but he really has to try harder as the share price continues to languish

Current share price just above 2 bucks and about the same as when Banfields appointment was announced

He's told plenty of good stories since he started but nobody (but hopeful share holders) seem impressed

Hopefully the Chinese are still interested .... other wise the rest of the year is going to get painful .... share price wise

C'mon David, try harder

[william67]

Essentially Manuka honey is just one kind of commodity such as coffee beans, cocoa beans, milk powder, beef, apples, or t-shirts, shoes, bags, belts, watches etc.

Harvested massive Manuka honey is bad news to some beekeepers, but to Comvita, means lower cost of ingredients. Comvita could use its premium brand to make more profit by higher gross margin.

I guess Comvita with its harvest model might pay a little bit more than current market price to its partners, and have to stock up more manuka honey in the last massive harvest season. In the short term it is painful, if not much free cash in hands ,but In the long term it is sustainable, everyone on this supply chain could make profit. We still have fresh memories that Comvita and Watson & Son all made big losses in the last few years.

The manuka honey industry would not exist if everyone was just fighting a price war, look around so many names in the field, they all price diffrently.

Nike can sell one pair of shoes at a much higher price than Kmart or Number One Shoes. That is ‘pricing’ power. Only premium brands can stand price war to some extent.
The price war in the manuka honey market happens all the time. The quality of manuka honey is much different under different names.

Bulk manuka honey export and different criteria for bottled manuka honey domestic and overseas are big holes in the manuka honey industry. That explains the chaos in the NZ domestic market and UK market.

Branding is a dangerous game, the precious gross profit might be wasted to achieve nothing in the name of branding or marketing.

[ralph]

Banfield trying hard to find a buyer for the company but he really has to try harder as the share price continues to languish

Current share price just above 2 bucks and about the same as when Banfields appointment was announced

He's told plenty of good stories since he started but nobody (but hopeful share holders) seem impressed

Hopefully the Chinese are still interested .... other wise the rest of the year is going to get painful .... share price wise

C'mon David, try harder

I think cvt is doing better than most in this bear market & is also placed well for the future when the bear goes back not like the product has a short shelf life is it .

[RTM]

http://research.iress.com.au/IDS/old/20220629/02536372.pdf?uid=BEE68CC0F146CC44CBE2F6CF80DD0EDF2 A6D0000DCFE2043D7D8E540093D250091850000&ppv=

May be of interest.

[whatsup]

I heard in todays national country programe that honey will be duty free in the near future into Europe, this should help with that export market, are there any other listed honey exporting companies that this also applies to ?

[percy]

i heard in todays national country programe that honey will be duty free in the near future into europe, this should help with that export market, are there any other listed honey exporting companies that this also applies to ?

mee...............................................

[ralph]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/395953/375377.pdf

It seems these guys are looking /buying into a few companies on the nzx could be good for sales in china !!!

[Gerald]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/395953/375377.pdf

It seems these guys are looking /buying into a few companies on the nzx could be good for sales in china !!!

No, read the disclosures. Just a change of name.

[ralph]

No, read the disclosures. Just a change of name.
My bad Gerald ,dodgy doings

[william67]

Sweet boost for mānuka honeyThe new Free Trade Agreement between New Zealand and the European Union has given a major boost to the New Zealand honey industry’s claim to exclusive rights to the name ‘mānuka’ honey.
Currently Comvita’s head of industry affairs,Tony Wright
"He revealed at the conference two findings from new research, not yet formally published, that indicate significant differences between New Zealand mānuka trees and honey and their Australian rivals.
One used Rapid Evaporative Ionization Mass Spectrometry (REIMS) to analyse honey’s chemical composition, and the other used something called an FST score to analyse the genetics of the trees.
Wright said the FST analysis showed some variation within New Zealand “but nowhere near the significant difference between here and Tasmania”.
He said it will be evidence to support future applications.
“The Australians can’t say that their leptospermum honey is the same as ours,” he told Rural News.
“It’s another one of those proof points that says what’s happened here in New Zealand with our unique environment has shifted the genetics in a way that the product is different.”
Wright explained to the conference there are several methods of protecting a name, including certification trademarks (CTMs), geographical indicators (GI) and protected food names"

https://www.ruralnewsgroup.co.nz/rural-news/rural-agribusiness/sweet-boost-for-manuka-honey

[winner69]

Full Year and headlines make good reading .... everything positive and solid result

I only look at two number and that's Operating Cash Flow and Free Cash Flow

Operating Cash Flow (including leases payments) has gone negative

And they borrowed $22m ....to buy new things and pay a dividend

Hope this chart looks better in a years time

[Biscuit]

Full Year and headlines make good reading .... everything positive and solid result

I only look at two number and that's Operating Cash Flow and Free Cash Flow

Operating Cash Flow (including leases payments) has gone negative

And they borrowed $22m ....to buy new things and pay a dividend

Hope this chart looks better in a years time

Yeah, cashflow is king. I held companies in the '80s that had spectacular profits but went bust with negative cashflow.

[Muse]

Full Year and headlines make good reading .... everything positive and solid result

I only look at two number and that's Operating Cash Flow and Free Cash Flow

Operating Cash Flow (including leases payments) has gone negative

And they borrowed $22m ....to buy new things and pay a dividend

Hope this chart looks better in a years time

Thats working capital intensive businesses for you. Hence, all things equal, businesses with a better quality of earnings (EBITDA or NPAT flow through to free cash flow) tend to trade on higher multiples (and ought to if you evaluated them using a dcf).

But of course companies with no assets employed get derided as low moat, and companies with assets employed get derided as poor cashflow.

No problem with capital intensive businesses as long as they can generate a strong return on funds employed (ebit / NWC + PP&E). Have to watch the inventory quality. Often times the cash surges when growth slows and gets consumed when growth ramps up.

[Balance]

Thats working capital intensive businesses for you. Hence, all things equal, businesses with a better quality of earnings (EBITDA or NPAT flow through to free cash flow) tend to trade on higher multiples (and ought to if you evaluated them using a dcf).

But of course companies with no assets employed get derided as low moat, and companies with assets employed get derided as poor cashflow.

No problem with capital intensive businesses as long as they can generate a strong return on funds employed (ebit / NWC + PP&E). Have to watch the inventory quality. Often times the cash surges when growth slows and gets consumed when growth ramps up.

Good points and CVT's massive build up of inventories needs monitoring.

Otherwise, happy with the results - transformative strategy now into growth phase and on target for $50m EBITDA in 2025.

[Muse]

Massive volume today - looks the biggest single day in at least 5 years, and still some time to go.

One off market trade for $4.6 million. Otherwise usual small trades.

[winner69]

Most punters like the solid results over the last year or so ...... but the share price has been hanging about in the 300 to 350 range for a year or so now

And that's with almost a continuous share buy back --- a great case study in share buybacks don't always boost the share price

One day CVT might be 4 bucks

[BlackPeter]

Most punters like the solid results over the last year or so ...... but the share price has been hanging about in the 300 to 350 range for a year or so now

And that's with almost a continuous share buy back --- a great case study in share buybacks don't always boost the share price

One day CVT might be 4 bucks

Just happening to look through their books. Given its already more than 2 weeks since publication probably reflects on the priority I put on them.

RoE 5.6% - better than last year, but not really outstanding. Liabilities to assets look good at face value (31.5%) however - liabilities increased ... and their single largest asset is their inventory of honey. May or may not be easy to sell!

So, they say the sticky stuff they got in store is $132m worth ... well, if they find customers who want to pay this money. At the moment they don't (well, not enough), but they say that 2023 (and particularly the second half) will be different - this will be an amazing second half. Yeah right.

GLTH ... or should I say - good luck to anybody speculating on the future price of manuka honey?

It might work out ... or it might not.

Some analysts put it on a "speculative buy". I definitely would agree with the first part of this assessment.

[winner69]

Just happening to look through their books. Given its already more than 2 weeks since publication probably reflects on the priority I put on them.

RoE 5.6% - better than last year, but not really outstanding. .....etc

ROE of 5.6% is pretty awful ..... jeez they're years down the transformation path and is the best they can do?

Even worse is that their return on invested capital (including debt) is less than 6% ...... wouldn't even be covering their cost of capital .... in other words a value destroyer

As such doesn't even warrant trading at Book Value of $3.25 but it is so punters really think the future is bright

That David hasn't really delivered (financially) yet .... needs to pull his finger out

[Habits]

Two differentiated levels of honey and honey products. Commodity level where there's a glut... And the high value stuff that is in health food shops and the like. Be careful not to mix up the two or CVT could be "stuck" and discounting inventory. Up till now I believed that the BOD and executive team had been making strides. I was forced to sell earlier so did so when there was a BB

[BlackPeter]

...

That David hasn't really delivered (financially) yet .... needs to pull his finger out

True ... though to be fair, it took him with Methven as well something like 4 to 5 years until the ship start changing course (from memory). Maybe one of these slow burning wizards?

Anyway ... 2 sticky 4 me ...

[winner69]

True ... though to be fair, it took him with Methven as well something like 4 to 5 years until the ship start changing course (from memory). Maybe one of these slow burning wizards?

Anyway ... 2 sticky 4 me ...

We never saw if Methven had turned around - like when the get out of jail card was palyed the media headlines were 'GWA’s $118m offer for Methven comes after years of underperformance'

So another year or so before David has finished dressing up this outfit for sale

And then the media can report '.....offer for Comvita comes after years of underperformance'

[BlackPeter]

We never saw if Methven had turned around - like when the get out of jail card was palyed the media headlines were 'GWA’s $118m offer for Methven comes after years of underperformance'

So another year or so before David has finished dressing up this outfit for sale

And then the media can report '.....offer for Comvita comes after years of underperformance'

Fair point.

Maybe you just uncovered his special skill ;) : I guess not everybody can sell a company with a gain by carefully ensuring it keeps underperforming in a consistent way.

[percy]

We never saw if Methven had turned around - like when the get out of jail card was palyed the media headlines were 'GWA’s $118m offer for Methven comes after years of underperformance'

So another year or so before David has finished dressing up this outfit for sale

And then the media can report '.....offer for Comvita comes after years of underperformance'

I remember a MVN result coming out.Thought I would be posting "another under performance from the serial underperformer".
Decided I had better read the result before posting.
Received a huge shock,the result and and outlook was fantastic,so I bought some shares.
David Banfield did what he said he would do.
Not long after that the takeover was announced.
CVT.Sorry stock build up makes me a non believer.

[BlackPeter]

I remember a MVN result coming out.Thought I would be posting "another under performance from the serial underperformer".
Decided I had better read the result before posting.
Received a huge shock,the result and and outlook was fantastic,so I bought some shares.
David Banfield did what he said he would do.
Not long after that the takeover was announced.
CVT.Sorry stock build up makes me a non believer.

To be honest - I haven't followed Methven's performance after the takeover through the Australian GWA Group, just checked however out of pure curiosity GWA's SP performance since they took over Methven:

SP down from $3.44 (April 2019) to $1.99 (today) and below all relevant MA's. Classical downtrend.

But sure - we don't know how their performance would look like if they would not have bought Methven which David magically turned around - at least for one reporting period ;) ;.

[percy]

To be honest - I haven't followed Methven's performance after the takeover through the Australian GWA Group, just checked however out of pure curiosity GWA's SP performance since they took over Methven:

SP down from $3.44 (April 2019) to $1.99 (today) and below all relevant MA's. Classical downtrend.

But sure - we don't know how their performance would look like if they would not have bought Methven which David magically turned around - at least for one reporting period ;) ;.

I had a laugh at your last sentence,"David magically turned around- at least for one reporting period."
Classic...lol

[winner69]

Fair point.

Maybe you just uncovered his special skill ;) : I guess not everybody can sell a company with a gain by carefully ensuring it keeps underperforming in a consistent way.

If you keep saying things like 'transformation progressing well' and 'we are a premium fast moving consumer goods lifestyle brand' and wrap it up in slick presentations everything will be OK '''' and one day somebody might pay a premium to take them out.

[Sideshow Bob]

https://www.nzx.com/announcements/399607

AGM presentation and CEO/Chairman address.

[winner69]

FY23 has started well with high single digit revenue growth and double digit earnings
growth

That's good news

EBITDA going to grow from $30m to $50m in next few years

Wonder if it will be hocked off before then and we'll never know whether they got there

[BlackPeter]

FY23 has started well with high single digit revenue growth and double digit earnings
growth

That's good news

EBITDA going to grow from $30m to $50m in next few years

Wonder if it will be hocked off before then and we'll never know whether they got there

CEO sad "Today is a landmark day for Comvita's history. Sounds like the company put its mark on history. This must be good. Is it? - or was it just one of the less noticeable landmarks?

PE (at current SP) is 18. Clearly - this must be cheap for a historic company living in extraordinary times. But wait ... can a historic company be cheap?

... and they are still selling some stuff to the "Rest of Asia". Just wondering how any customer would feel being called the "Rest of anything", but how particularly does this feel for e.g. proud Japanese and Korean people. Hmm ... extraordinary. Wondering how "Rest of Asia" translates into Te Reo, does it sound better there?

Not sure, whether Taiwan is in Comvita terms "greater China" or "Rest of Asia", but wondering whether anybody asked the chair what his plan is if his fellow chair Xi attacks Taiwan.

Sanctions ahead?

...

[winner69]

CEO sad "Today is a landmark day for Comvita's history. Sounds like the company put its mark on history. This must be good. Is it? - or was it just one of the less noticeable landmarks?

PE (at current SP) is 18. Clearly - this must be cheap for a historic company living in extraordinary times. But wait ... can a historic company be cheap?

... and they are still selling some stuff to the "Rest of Asia". Just wondering how any customer would feel being called the "Rest of anything", but how particularly does this feel for e.g. proud Japanese and Korean people. Hmm ... extraordinary. Wondering how "Rest of Asia" translates into Te Reo, does it sound better there?

Not sure, whether Taiwan is in Comvita terms "greater China" or "Rest of Asia", but wondering whether anybody asked the chair what his plan is if his fellow chair Xi attacks Taiwan.

Sanctions ahead?

...

Rumour has it that Xi is under house arrest - coup?

That could be good for Comvita

[BlackPeter]

Rumour has it that Xi is under house arrest - coup?

That could be good for Comvita

Sounds like rumour is wrong.

https://www.aljazeera.com/news/2022/9/27/chinas-xi-makes-appearance-in-beijing-amid-rumors-over-absence

Bad for Comvita?

[BlackPeter]

Happened to listen this morning into "Country Life" on National Radio. As one of their stories they interviewed a beekeeper producing Manuka honey. Great story, but it sounds like the industry is somewhat in trouble.

Sounds like nobody seems to want to buy Manuka honey anymore.

Anyway - maybe just the problem of some individual beekeeper, maybe a strange blib ... but maybe not?

[Southern Lad]

Link to Country Life episode Beekeeper story starts at 15:07

https://www.rnz.co.nz/audio/player?audio_id=2018863662

[kiora]

Surplus UMF honey? Looks like it
PakNSave 6x 250grm MGO 40+ for $3.99 each

[Balance]

Surplus UMF honey? Looks like it
PakNSave 6x 250grm MGO 40+ for $3.99 each

Plenty of cheap low UMF & multi-flora manuka honey out there.

Have you seen the prices of high UMF manuka honey? That’s where the money is.

[BlackPeter]

Plenty of cheap low UMF & multi-flora manuka honey out there.

Have you seen the prices of high UMF manuka honey? That’s where the money is.

But only if people are buying it. Anybody can ask for lots of money - the trick is to find as well willing buyers, and this seems to be currently the issue.

[Balance]

Update on honey harvest in 2022 - less hives and less beekeepers.

https://www.rnz.co.nz/news/national/479084/number-of-beehives-fall-as-beekeepers-produce-22-000-tonnes-of-honey-in-2022

[winner69]

more fantastic news from Comvita

David is a great story teller isn't he .... loves that part of a job.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/402674/383808.pdf

[BlackPeter]

more fantastic news from Comvita

David is a great story teller isn't he .... loves that part of a job.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/402674/383808.pdf

Good to see that their sales are in line with forecasts. Analysts expect a high single digit percentage rise in revenue, which means that they think they will basically tread water (considering inflation is similar sized).

Much better than losing business, but is this really "fantastic news?" Some other companies would call that hardly "satisfactory".

[winner69]

be interesting how much cash they burn in first half of year and if thigs don't pick up in second half as they say (weighted) what full year cash burn will end up

Negative cash flows in F22

[BlackPeter]

be interesting how much cash they burn in first half of year and if thigs don't pick up in second half as they say (weighted) what full year cash burn will end up

Negative cash flows in F22

You recon that they still increase their largest and quite sticky asset? I would have hoped that they are selling down, which should be good for the cash flow, shouldn't it?

[percy]

You recon that they still increase their largest and quite sticky asset? I would have hoped that they are selling down, which should be good for the cash flow, shouldn't it?

Will take awhile....

As previously detailed Inventory and associated debt is forecast to be at an elevated levels through FY23 before reducing towards the $85M Inventory target in FY25.

[Recaster]

A look at the financials and quantitative issues. No prognostications on the company's future or qualitative issues.

https://recastinvestor.substack.com/p/update-comvita-cvtnzx

[Sideshow Bob]

https://www.nzx.com/announcements/407182

Headlines
- Record operating profit $11.6M +$4.4M and +61% vs PCP
- Record EBITDA $13.4M +$1.3M and +11% vs PCP
- Record NPAT $4.2M +19% vs PCP
- Record revenue $112M +7% vs PCP
- Record GP $69.4M +17% vs PCP
- Record investment in brand of $15.5M +$2.2M vs PCP
- Performance delivered despite negative FX $3.5M and interest charge due to elevated debt +$1M vs PCP and Covid related
disruption to retail sales in China
- Transformation investment $2.2M +$1.5M vs PCP (due to finish end FY24)

- Strong Performance in focus markets and Channels:
o North America revenue +20% and net contribution +40%
o Greater China revenue +9% and net contribution +15%
o Digital (D2C and marketplace) +15% now 38.8% of sales +580bps
- Gaining market share in key markets

FINANCIAL RESULTS FOR THE SIX MONTHS ENDED UNAUDITED 31 DECEMBER 2022 (31 DECEMBER 2021) VARIANCE %

Revenue 112.1 (104.9) +6.8%
Gross profit 69.4 (59.4) +16.8%
Marketing investment 15.5 (13.3) +16.8%
Operating profit 11.6 (7.2) +60.9%
EBITDA* 13.4 (12.1) +11.1%
Normalised EBITDA – after ERP 14.0 (12.1) +15.9%
Net profit after tax 4.2 (3.5) +19.4%
Net debt 63.3 (26.3) +$37M
Fully imputed dividend 2.5 cps (2.5 cps)
*EBITDA: Earnings before interest, tax, depreciation, and amortisation

[winner69]

‘Record’ mentioned 14 times

That must be a record in itself

Egos must be at a record high at Comvita HQ

David still waiting for that takeover offer I reckon

[winner69]

Even if the storms have wiped out a lot of the hives etc Comvita need not worry ……..they have over 18 months cost iof sales as inventory.

[percy]

Even if the storms have wiped out a lot of the hives etc Comvita need not worry ……..they have over 18 months cost iof sales as inventory.

Yes inventory up 30%.to $145.844 mil..Thought they were aiming for $80mil to $90mil.
And Net debt up 163% to $63.3 mil.
They are not doing what they said they would do.

[william67]

Inventory might be good debt, if look at raining weather for past few monthes, think of poor harvest of manuka honey.

[Felonius]

Yes inventory up 30%.to $145.844 mil..Thought they were aiming for $80mil to $90mil.
And Net debt up 163% to $63.3 mil.
They are not doing what they said they would do.

Perhaps it's too soon to judge. Here is a quote from the Feb'22 interim report.
"This is only a temporary change and Comvita
stands by its view that optimum inventory levels would be circa $85m by 2025"

[percy]

Perhaps it's too soon to judge. Here is a quote from the Feb'22 interim report.
"This is only a temporary change and Comvita
stands by its view that optimum inventory levels would be circa $85m by 2025"

Well that is positive.
Their online sales growth, together with its high % of CVT's total sales, augers well for their future.

[winner69]

It'll be OK says David so no worries about the cash flow trend

I take back my words of a couple of years ago when I said that David has at least told them '.... that cash generation is important'

Never mind as David still hoping that they'll be taken over and we'll never know if inventory reduced to $85m and they collected all those unpaid bills

[nztx]

Inventory might be good debt, if look at raining weather for past few monthes, think of poor harvest of manuka honey.


Realised Debt incoming from outgoing inventory in the bank might be even better

What's the shelf life of CVT's inventory ?

And inventory honey grades ?

None high hoofed it out the door unnoticed or mysteriously lost market value or awaiting impairment ? ;)

[ralph]

It'll be OK says David so no worries about the cash flow trend

I take back my words of a couple of years ago when I said that David has at least told them '.... that cash generation is important'

Never mind as David still hoping that they'll be taken over and we'll never know if inventory reduced to $85m and they collected all those unpaid bills

Excess Inventory's a good thing to have in the honey /apiary trade especially for a bad year honey will be good in a hundred years plus unlike the stock of seeka t&g etc .
A good report for Comvitas shareholder's

[nztx]

It'll be OK says David so no worries about the cash flow trend

I take back my words of a couple of years ago when I said that David has at least told them '.... that cash generation is important'

Never mind as David still hoping that they'll be taken over and we'll never know if inventory reduced to $85m and they collected all those unpaid bills


Wonder how MEE are doing with their little venture in among the bees and sticky stuff ? ;)

[nztx]

Excess Inventory's a good thing to have in the honey /apiary trade especially for a bad year honey will be good in a hundred years plus unlike the stock of seeka t&g etc .
A good report for Comvitas shareholder's


that might be the case .. but what happens when whats in stock now is sold, and fruits of poor seasons
await in lean years for the market ?

Cant sell what's not there ..

[ralph]

that might be the case .. but what happens when whats in stock now is sold, and fruits of poor seasons
await in lean years for the market ?

Cant sell what's not there ..

With the inventory /stock sold then some shareholders will be even happier apparently that's why they maintain these stocks !!
Cant have it both ways for sure

[nztx]

what happens when the seasons are lean and the inventory on hand is headed towards bare warehouse ? :)

Wonder if MEE might have some deeply discounted written off surplus they might want to quit ? ;)

might even be some spare imitation stock hiding out in the land of the large Red Rock over yonder ..

[kiora]

Inventory might be good debt, if look at raining weather for past few monthes, think of poor harvest of manuka honey.

Highly probable statement re poor harvest but Q/grade of inventory ???

[winner69]

Comvita had their petty cash float in SVB

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/408200/390537.pdf

[stoploss]

Comvita had their petty cash float in SVB

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/408200/390537.pdf

No worries they will get it all back , Feds bailed it all out.

[winner69]

Comvita put their SVB money into Bank of America

Hope it’s safe there - BoA capital apparently substantially impaired as well.

[Balance]

Talked to a beekeeper a week ago from Gisborne :

2023 honey season is a disaster for most honey producers, but especially manuka honey, in the North Island and no player is spared.

His own yield is down 50% from last year and quality is poor.

Reinforces the news coming out of the industry :

https://www.rnz.co.nz/news/country/483983/honey-yields-expected-to-see-significant-drop-apiculture-new-zealand

"If I look at the beekeepers I've been speaking to in Auckland, Waikato, East Cape, pretty much most of the North Island, they're saying it's one of the worst seasons in 10 years.

[BlackPeter]

Talked to a beekeeper a week ago from Gisborne :

2023 honey season is a disaster for most honey producers, but especially manuka honey, in the North Island and no player is spared.

His own yield is down 50% from last year and quality is poor.

Reinforces the news coming out of the industry :

https://www.rnz.co.nz/news/country/483983/honey-yields-expected-to-see-significant-drop-apiculture-new-zealand

"If I look at the beekeepers I've been speaking to in Auckland, Waikato, East Cape, pretty much most of the North Island, they're saying it's one of the worst seasons in 10 years.

Heard that as well, but might actually be good news for Comvita, given that a good part of the assets on their balance sheet is aging manuka honey.

I suppose if the new harvest is bad, the value of the stored honey might rise :) ;

Liquid gold ...

Discl: don't hold and don't plan to invest in it ... so take this with a grain of salt ...

[Balance]

Heard that as well, but might actually be good news for Comvita, given that a good part of the assets on their balance sheet is aging manuka honey.

I suppose if the new harvest is bad, the value of the stored honey might rise :) ;

Liquid gold ...

Discl: don't hold and don't plan to invest in it ... so take this with a grain of salt ...

I asked about that and his view is that the industry is sitting on several years’ stock of low quality manuka honey but low stock of high quality manuka honey (ie. UMF >15).

Anyway, the long term players treat this year as one of those bad years which agricultural players expect once every few years or so.

[BlackPeter]

I asked about that and his view is that the industry is sitting on several years’ stock of low quality manuka honey but low stock of high quality manuka honey (ie. UMF >15).

Anyway, the long term players treat this year as one of those bad years which agricultural players expect once every few years or so.

From memory - Comvita used to have ways more bad years than good years in the recent past ... i.e. long term players might be better off expecting a good year every few years or so :) ;

[Habits]

Colony collapse is all time high 13% I think it is, from not protecting against varroa. According to Google thousands of hives were damaged by the cyclone. So these factors will be affecting production. SP is down nearly 4 pct today

[ralph]

Colony collapse is all time high 13% I think it is, from not protecting against varroa. According to Google thousands of hives were damaged by the cyclone. So these factors will be affecting production. SP is down nearly 4 pct today
Where is the evidence to say they are experiencing 13% colony collapse or not protecting against the varroa mite ,especially as all beekeepers do not do this this until after the honey flow on a regular basis.

[Habits]

Where is the evidence to say they are experiencing 13% colony collapse or not protecting against the varroa mite ,especially as all beekeepers do not do this this until after the honey flow on a regular basis.

The RNZ 630am rural report Susan Murray. That didn't come up in my google results, there is the MPI survey which echo's

"Based on reports from 41% of beekeepers managing 49% of New Zealand’s honeybee colonies, we estimate the overall loss rate during winter 2022 to be 13.5%, or approximately 98,000 colonies." Overall combined causes of 13.5 percent. Varroa makes a portion but serious and increasing. Which was explained will have increasing downstream ramification and effect from uncontrolled spread.

Bee colony loss survey | NZ Government
https://www.mpi.govt.nz/biosecurity/how-to-find-report-and-prevent-pests-and-diseases/bee-biosecurity/bee-colony-loss-survey/

[Balance]

Selling shares to meet tax obligations.

https://www.nzx.com/announcements/409661

[bull....]

new 52 week low , all the positive announcements dont seem to be helping the share price

[BlackPeter]

new 52 week low , all the positive announcements dont seem to be helping the share price

What positive announcements?

[Balance]

https://www.farmersweekly.co.nz/markets/manuka-boom-and-bust-stings-beekeepers/

"But in a classic boom and bust tale, there's also an oversupply of the once-rare mānuka honey, and beekeepers are struggling to cover soaring production costs as exports soften and prices plunge for all but the very best product.

"There might be only a couple of tons of that in all of New Zealand," he said. "The real story is about the hundreds of tons of almost-as-good stuff. Those guys aren't getting anything like those numbers."

[william67]

Sp is falling off a cliff, irresponsible leadership! ignorant and arrogant!

[BlackPeter]

Sp is falling off a cliff, irresponsible leadership! ignorant and arrogant!

It wasn't the leader who pumped the SP in the first place ...

While not sure I want to stand here and defend them - CVT SP was always a plaything of market folly - and yes, it looks like market just squeezing the balloon a bit more. It is still trading at an average long term PE of something like 25. If you take an average PE of 10 (or Grahams 8.5) as appropriate for a not growing agricultural stock, the share would be worth something around $1 per share. Everything else is just an echo of the incredible hype this stock has been exposed to.

But sure - hype comes in waves, so there is always hope, which - however - is rarely a good investment strategy.

[Balance]

Sp is falling off a cliff, irresponsible leadership! ignorant and arrogant!

They are not responsible for the weather surely!

[william67]

As a branding food company, a marketing company, leaders have to take more responsibility. It is not a agricultural stock, more like See's Candies, average PE should be much higher than 10.
Bad weather is the past , not the present.
The potential market size for manuka honey is huge. It is their marketing ability had been qusetioned! It is also their confidence to the company had been questioned when they sold shares at $3.04 for whatever reasons.

[winner69]

It wasn't the leader who pumped the SP in the first place ...

……...

Less than a year ago David was ‘pumping’ the share price and asking the world to take us over

FromnBusinessDesk interview

So, what makes a good takeover target?

An undervalued company with solid prospects is top of the wish list. Also, one that has undertaken a “strategic review”, often double-speak for cleaning things up for a potential sale. “We recognise that the current share price materially undervalues Comvita, even if just looking at FY22 guidance, let alone the opportunity we see ahead reflected in our 2025 strategic plan,” Banfield said.

The stock last traded at $3.30, up 1.9% over the past year. “Our current trading earnings multiple is again materially below other benchmark growth companies – which is especially unusual given how much we have simplified, executed our plans and reduced risk in the business.”

Those look like three ticks to me

[BlackPeter]

Less than a year ago David was ‘pumping’ the share price and asking the world to take us over

FromnBusinessDesk interview

So, what makes a good takeover target?

An undervalued company with solid prospects is top of the wish list. Also, one that has undertaken a “strategic review”, often double-speak for cleaning things up for a potential sale. “We recognise that the current share price materially undervalues Comvita, even if just looking at FY22 guidance, let alone the opportunity we see ahead reflected in our 2025 strategic plan,” Banfield said.

The stock last traded at $3.30, up 1.9% over the past year. “Our current trading earnings multiple is again materially below other benchmark growth companies – which is especially unusual given how much we have simplified, executed our plans and reduced risk in the business.”

Those look like three ticks to me


Fair enough. I don't really follow them close enough to still remember this. Still don't think that the current malaise is due to an incapable CEO, at worst you can accuse him for not doing enough due diligence during the interview process and not taking the other job instead :) .

Always tough if they hire you to ride a hyped up racehorse and you find out later that it is at best good enough for pulling carts to the brewery. But hey - happens to the best, no matter whether the company is called CVT, SML or MPG.

[william67]

The board hires executives to fix problems, make changes , not hires a high-paid CEO to operat a ready-made machine. you could say the machine doesn't work, but in most cases ,It is the CEO is not capable to fix it and operate it!

[Sideshow Bob]

https://www.nzx.com/announcements/410705

Comvita Limited (NZX: CVT) global market leader in Mānuka honey, Propolis and Fresh-Picked™ Olive Leaf Extract is pleased to maintain guidance of double-digit EBITDA growth (after one-off ERP costs previously disclosed) despite the extreme weather events that hit Aotearoa, New Zealand this year and report strong demand forecasts from its markets.

Comvita is pleased to confirm that despite the negative impacts on this year’s honey harvest from a series of extreme weather events its breakeven harvest model has again delivered. The breakeven model was designed to build resilience into Comvita’s Mānuka honey supply chain by ensuring that in bad weather years the Apiary supply division was able to breakeven (avoiding any negative impact to group profits) while still preserving the opportunity to benefit in good years. Despite this year’s low harvest volumes Comvita remain well placed to meet growing demand for their premium Mānuka honey products.

In addition, Comvita reaffirmed that it is fully covered by Insurance from the impacts of Cyclone Gabrielle which had such a devastating impact on Hawkes Bay. The Hawkes Bay team is now operating from a temporary base in the region. Comvita is also pleased to report that extraction has been virtually completed (90%) at one of its other facilities ensuring continuity of supply.

Finally, Comvita noted the strength of forecasts from its markets for delivery in Q4 FY23 and the initial indications of strong forecast demand continuing into Q1 FY24. Its strong demand in Q4 will impact debtors at year end though net debt is still expected to fall by c 20% from its reported level at the half year ended 31 December 2022 and inventory is expected to be materially in line with PCP as previously forecast.

David Banfield, CEO commented “One of the key aims of our Focus strategy that we launched in 2020 was to build resilience into our operating model to enable us to offset the impact of events outside our control. It’s extremely encouraging that our honey harvest model has now been proven for three consecutive years. In addition, having just returned from China and other markets I am delighted with how our business model is enabling us to win with discerning consumers around the world. We see good demand in key markets, we are gaining market share and are forecasting a record Q4 enabling us to deliver guidance in FY23 and as importantly, keep us on track to deliver our FY25 target of $50M EBITDA.”

[Rawz]

Inventory at HY23= $145.8m
Debt at HY23= $63.3m

Inventory at FY23= $132.2m (in line with pcp)
Debt at HY23= $50.6m (20% below HY)

Looks like they have done good to reduce that huge inventory load and used it all to reduce debt.

EBITDA forecast to grow 66% over next 2 years.

Not a holder but looks good ?

[Rawz]

Market cap $193m and they hold $132m worth of honey

[winner69]

Market cap $193m and they hold $132m worth of honey

Could get a new valuation metric out of this ……. Inventory X something = share price

[BlackPeter]

Market cap $193m and they hold $132m worth of honey

Well spotted. I guess the all important question is - how is the manuka honey market trending, and how reliable are honey valuations :) ?

I heard about people building their fortune on quicksand ... building it on honey is something new.

[winner69]

Well spotted. I guess the all important question is - how is the manuka honey market trending, and how reliable are honey valuations :) ?

I heard about people building their fortune on quicksand ... building it on honey is something new.

Honey stock value $1.88 per share ……NTA $2.70 share

Share price $2.80

Mean anything?

[BlackPeter]

Honey stock value $1.88 per share ……NTA $2.70 share

Share price $2.80

Mean anything?

Yes it does - no matter how you measure it, a lot of their "value" is build on storing lots of sticky stuff and hoping the market price holds (or recovers?).

[Sideshow Bob]

Market cap $193m and they hold $132m worth of honey

Would prefer if they had $132m of cash.....:sleep:

At least honey never goes off!

[kiora]

They may need to build another warehouse to store their growing inventory?
Maybe with the poor harvest this year, down >50% for other bee keepers I have heard they can lower their inventory?
Not a good sign if they can't.

[Rawz]

They may need to build another warehouse to store their growing inventory?
Maybe with the poor harvest this year, down >50% for other bee keepers I have heard they can lower their inventory?
Not a good sign if they can't.

they reduced inventory c $13m over the last 6 months

[winner69]

David must be getting frustrated with no takeover offers yet

Have to try harder David

[sb9]

This is going nowhere over last 3 years or so, had few pump ups here and there but basically stuck in and around 3s.

[william67]

It is unfair to piss them off any longer.

[Balance]

https://www.farmersweekly.co.nz/markets/manuka-boom-and-bust-stings-beekeepers/

"But in a classic boom and bust tale, there's also an oversupply of the once-rare mānuka honey, and beekeepers are struggling to cover soaring production costs as exports soften and prices plunge for all but the very best product.

"There might be only a couple of tons of that in all of New Zealand," he said. "The real story is about the hundreds of tons of almost-as-good stuff. Those guys aren't getting anything like those numbers."

Was surprised to see 1kg UMF10+ Egmont honey on special at $29.95 ($59.95 less rebate $30) at Costco today. Same product was selling in April at $59.95 which was already a heavily discounted price at the time.

Looks to me like the industry has serious over-supply issues with lower grades manuka honey to get rid of!

[winner69]

Wow ..record sales at 618 festival …….wonder how many $s this is

Lost count of how many records Comvita have broken over the years

None the less David loves a good rave …i’ m proud of him

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/413697/397204.pdf

[BlackPeter]

Wow ..record sales at 618 festival …….wonder how many $s this is

None the less David loves a good rave …i’ m proud of him

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/413697/397204.pdf

SP in an unbroken downtrend since March. So, yes, he might deserve a certificate for "best improver", and yes, its nice he hasn't downgraded the outlook - but is this sufficient to make shareholders happy?

[winner69]

SP in an unbroken downtrend since March. So, yes, he might deserve a certificate for "best improver", and yes, its nice he hasn't downgraded the outlook - but is this sufficient to make shareholders happy?

Double digit ebitda growth for F23 pretty good

Probably record revenues and record margins and record ebitda on cards

[BlackPeter]

Double digit ebitda growth for F23 pretty good

Probably record revenues and record margins and record ebitda on cards

Didn't they mention at some stage a pretty poor harvest?

But who knows - maybe less is more :) - at least they could hire out some of their storage rooms, this would be good ;) ;

[Mel]

https://www.nzx.com/announcements/414078
Pitched as a multi-million dollar deal..............no specifics on this and not deemed to be price sensitive. PR spin?

[winner69]

https://www.nzx.com/announcements/414078
Pitched as a multi-million dollar deal..............no specifics on this and not deemed to be price sensitive. PR spin?

Is marked Price Sensitive

Big deal ……good on Hipkins enabling multi-million deals like this to happen

[Mel]

Is marked Price Sensitive

Big deal ……good on Hipkins enabling multi-million deals like this to happen
Sorry, I missed the price sensitive flag. Yes, despite anyone's political leanings, Hipkins appears to have done a great job in China from an economical perspective.

[Balance]

https://www.nzx.com/announcements/414078
Pitched as a multi-million dollar deal..............no specifics on this and not deemed to be price sensitive. PR spin?

Surprises me that NZ companies and businesses have not worked out yet imho that signing a MOU with an Asian company (especially China & Korea) is their way of diplomatically saying no or more major price concessions required.

Anyone seen any meaningful deal resulting from the thousands of MOUs signed with Asian companies over the decades?

Similar to the Japanese saying ‘very hard, balance-san’ when I used to sit across the negotiating table with them. They are too polite to say ‘No’.

Good PR for Comvita though and kudos to Hipkins for bringing a huge contingent of NZ businesses to tag along for the ‘opportunities’.

[Mel]

Is marked Price Sensitive

Big deal ……good on Hipkins enabling multi-million deals like this to happen
Now on a trading halt, pending the release of further information

[winner69]

Now on a trading halt, pending the release of further information

Must be a hUGE deal ……more than just a few millions ….maybe tens of millions on top of what they already sell to Ole

Just imagine if each of the 100 stores did 2 million each ….wow.

[Mel]

Must be a hUGE deal ……more than just a few millions ….maybe tens of millions on top of what they already sell to Ole

Just imagine if each of the 100 stores did 2 million each ….wow.
Wishful thinking, but I'll go with your optimism :)

[Balance]

Must be a hUGE deal ……more than just a few millions ….maybe tens of millions on top of what they already sell to Ole

Just imagine if each of the 100 stores did 2 million each ….wow.

Let’s hope it is very good news - NZX can do with some hugely positive news and developments.

Maybe the announcement has triggered the China shareholders to increase their stakes too?

[winner69]

Let’s hope it is very good news - NZX can do with some hugely positive news and developments.

Maybe the announcement has triggered the China shareholders to increase their stakes too?

Maybe Dave found an acquiror while he was over there….been looking for a while

[Mel]

https://www.nzx.com/announcements/414105
No further details at this stage, other than no impact to FY23 guidance.

[winner69]

https://www.nzx.com/announcements/414105
No further details at this stage, other than no impact to FY23 guidance.

So the bees are the big winners

[william67]

No worry! Ole Supermarkets are owned by The China Resource (Holdings) co. ltd which is one of Comvita's shareholders
https://en.crc.com.cn/whoweare/ourleadership/corporateteam/

[winner69]

Ha ha …NZX guided Comvita to drop the ‘multimillion’ and replace it with ‘significant’

Dashed my hopes of zillions of extra sales …the significant part seems to be more around the ‘philosophically significant’ matters than ‘commercially significant’

If nothing else given Dave something to rave about

[kiwikeith]

Ha ha …NZX guided Comvita to drop the ‘multimillion’ and replace it with ‘significant’

Dashed my hopes of zillions of extra sales …the significant part seems to be more around the ‘philosophically significant’ matters than ‘commercially significant’

If nothing else given Dave something to rave about

I have to say I am surprised this was considered price sensitive. It seems like something a company like CVT would be doing in its normal course of business. Only time will tell how significant the increase in sales will be.

[winner69]

Jeez, buying a Singapore outlet

And EPS increase of 22%

Share price should hit $4 plus on this news

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/414170/397829.pdf

[winner69]

I did read this right didn’t I

This acquisition will be immediately accretive to Comvita with a HoneyWorld forecasted 24% increase in return on capital employed (ROCE) once integrated. For the Comvita group this acquisition is forecast to deliver a 22% improvement in EPS. HoneyWorld is forecasting revenue in FY24 of over SG$13M
(NZ$15.85M).

A big step up

[BlackPeter]

Jeez, buying a Singapore outlet

And EPS increase of 22%

Share price should hit $4 plus on this news

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/414170/397829.pdf

Does sound interesting, indeed. And hey - one amazing opportunity is chasing the other. Maybe they found the plug and managed to pull it?"

Good as well they don't put all their eggs into the Chinese basket. Singapore is a great market: well off, health conscious, but not that much impacted by Chinese political power games.

Still not quite sure, how much the business will be worth long term, but I expect the share might be ready to climb another hype mountain. Whether they manage to stay in higher altitudes will depend as well on the Manuka game (just don't get this ~ on top of the u) and - unfortunately - the NZ bee weather. Their long term PE (25.4) and their long term CAGR (-2) does not sound that exciting, but sure - the future will be different: sweet and sticky.

[Balance]

I did read this right didn’t I

This acquisition will be immediately accretive to Comvita with a HoneyWorld forecasted 24% increase in return on capital employed (ROCE) once integrated. For the Comvita group this acquisition is forecast to deliver a 22% improvement in EPS. HoneyWorld is forecasting revenue in FY24 of over SG$13M
(NZ$15.85M).

A big step up

So acquisition of $10.36m will generate an EPS increase of 4 cps (was 18.2 eps in 2022 so 22% = 4 cps) which equates increased NPAT of $2.8m.

Taking into consideration it's debt funded so say 6% (so interest cost of $625,000) and tax of 28% means EBIT of $4.5m from HoneyWorld!

So CVT is buying HoneyWorld on an EBIT multiple of 2.3X? Or ROI of 43.5%!

What an outstanding acquisition!

Question - why would the Singaporeans sell at that kind of giveaway price?

[winner69]

So acquisition of $10.36m will generate an EPS increase of 4 cps (was 18.2 eps in 2022 so 22% = 4 cps) which equates increased NPAT of $2.8m.

Taking into consideration it's debt funded so say 6% (so interest cost of $625,000) and tax of 28% means EBIT of $4.5m from HoneyWorld!

So CVT is buying HoneyWorld on an EBIT multiple of 2.3X? Or ROI of 43.5%!

What an outstanding acquisition!

Question - why would the Singaporeans sell at that kind of giveaway price?

Even better Balance

If you factor in the double digit growth they say in F23 and allow for more growth in F24 that 4 cents you mentioned is more like 5 cents and NPAT $3.5m

EBIT about 5.8m so acquisition at less than 2 times EBIT

He’s a genius this Dave

[Valuegrowth]

Sooner than later,there could be demand for defensive stocks wolrd wide. Comvita is pretty sensible with its use of debt. It seems they are going to take bit risk to boost shareholder value. Future earnings will drive stock prices.

[Valuegrowth]

This has dropped all the way from $11.50 in 2016 to below $ 3 in 2023. Now it has rebounded to $3.23. Very interesting scenario . Some say trend is friend.

[ralph]

This has dropped all the way from $11.50 in 2016 to below $ 3 in 2023. Now it has rebounded to $3.23. Very interesting scenario . Some say trend is friend.
Noted but during this bear market they have held on well still continued with a divi albeit a modest one . And now some good business deals very Interesting

[Valuegrowth]

I saw its long term chart. After rapid falling , It had a long base. In other words it had a quite long base building pattern. What they need now is future earnings and much improved ROE. I love to study base building in stocks. Good luck for your investment.

Noted but during this bear market they have held on well still continued with a divi albeit a modest one . And now some good business deals very Interesting

[Valuegrowth]

What's the main difference between Manuka honey and bee honey? My daughter's favourite honey is Manuka. My wife and daughter always say "Manuka honey is the best."My daughter almost every day use Manuka honey whereas I use other honey.

[Fortunecookie]

A dumb question. Is manuka honey sourced from all over NZ or predominantly one area?

[billkiapi]

From DOC: "Manuka is common throughout the North, South and Stewart Islands in lowland to low alpine regions up to 1800 m above sea level. It can be found in many different habitats including wetlands, river gravels and dry hillsides.

[Valuegrowth]

From DOC: "Manuka is common throughout the North, South and Stewart Islands in lowland to low alpine regions up to 1800 m above sea level. It can be found in many different habitats including wetlands, river gravels and dry hillsides.
Thanks. I just Google and found. Manuka has much stronger antibacterial properties than other raw honey. Very interesting. There are grades as well.

[billkiapi]

It is a very potent honey, with lots of health benefits. Hence why the Australians have taken the name for their "jellybush" honey...

[BlackPeter]

It is a very potent honey, with lots of health benefits. Hence why the Australians have taken the name for their "jellybush" honey...

To be fair - the Australian Manuka Plant (Leptospermum scoparium) is the same plant with exactly the same active ingredients as our NZ Manuka Plant (Leptospermum scoparium), i.e. assuming Manuka has some health benefits, than the Australian Manuka honey won't be different to ours.

The discussion is just whether the Australians are allowed to use the word "Manuka" (which is a Maori word) when they sell their honey. Its sort like selling Champagne made in NZ - it might well be the same grape and process, but is is made somewhere different.

[kiora]

Not all Manuka Honey is born equal

"Low to mid grades of UMF 10 to UMF 15 are called Therapeutic Grade (good for short term consumption). Lower UMF ratings means less MGO, less MGO means less antibacterial benefits. Generally, higher grade UMF 15+ or UMF 20+ manuka honeys are more effective at killing active bacterial infections."

https://www.umf.org.nz/unique-manuka-factor/

[BlackPeter]

Not all Manuka Honey is born equal

"Low to mid grades of UMF 10 to UMF 15 are called Therapeutic Grade (good for short term consumption). Lower UMF ratings means less MGO, less MGO means less antibacterial benefits. Generally, higher grade UMF 15+ or UMF 20+ manuka honeys are more effective at killing active bacterial infections."

https://www.umf.org.nz/unique-manuka-factor/


Sure, but this has nothing to do with whether the honey comes from Australia or from New Zealand.

The question is just, whether the bees collected just in Manuka forest, or whether they picked up as well some "by-catch".

[winner69]

No, I didn’t pen this piece in BusinessDesk



Mixing disclosure with desire

On the Money can’t count how many breathless statements on this and that deal we’ve seen over the years, nor can we estimate how many actually turbocharged whatever iconic business into the stratosphere, although a few spectacular implosions stick out.

So we weren’t overly surprised to see a quick about-face by Comvita over a very breathless deal with China’s Olé supermarket chain that touted itself as being a multimillion-dollar deal, without providing any of those sweet sweet details we financial reporter-types like.

A trading halt was whacked on the stock soon at NZ RegCo’s request for more information, and a new statement soon emerged with the more nebulous “significant” description in the headline, and an addendum pointing out that the details were still being ironed out, but wouldn’t affect the firm’s earnings guidance for the year ended June 30 – which seemed a bit obvious given the statement was made three days after the balance date.

On the Money wonders whether the mix-up stemmed from Comvita’s inability to tell whether it’s a singular or plural – obviously a case of one plus one not adding to two.

[Valuegrowth]

Comvita have a good chance to expand their business worldwide given the top ranking for NZ food safety, nutritional standards and food safety programme. In 2021, NZ ranked 3rd out of 113 countries for food safety, nutritional standards and food safety programme. New Zealand is a leader in food safety and product traceability. NZ Manuka Honey is a unique honey. Hope I can be part of its successful business journey. It seems management is taking steps to penetrate foreign markets. Curent trading price is not overly expensive. Similarly, not overly cheap. In other words sitting on the middle, but trading great discount to the market as well as to the sector. Short term and long term assets exceed both short term liabilities and long term liabilities respectively.

PE ratio is much below(16x) the personal products industry(27.5x), market and other global peers. Debt level is satisfactory.Over the 5 years debt has reduced.

As at 31/12/2022

In thousands of New Zealand dollars

Total Curent assets:207,906
Curent liabilites:38,085
Total Liabilities: 125921
Total Assets:358,855
Totoal non curent assets:150,949

This is not a highly leverage company as well. When compare with market, sector and peers, it’s very attractive to me. Peer comparison is a great way to find attractive stocks. On top of that it’s also a defensive company. Finally, I invested in a quality company.

https://cdn.comvita.com/investor/results-and-reporting/2023/record-first-half-earnings-at-comvita.pdf

Net debt, inventory, and operating cashflow Net debt increased to $63.3M primarily as a result of increased inventory and an increase in debtors due to timing of revenues in H1 vs PCP. Inventory has now peaked, and Comvita retain forecast to deliver inventories in line with PCP at the full year end. This elevated inventory was a considered decision to enable Comvita to respond immediately to changes in market demand. Stage four of the supply optimisation work is now completed – this programme significantly reduces Comvita’s exposure to contracted demand and enables the balance supply and demand. This new program is central to Comvita’s confidence that they will be able to deliver material decreases in inventory over the next two years in line with their strategy for inventory to be c$85M in 2025. The supply optimisation program is also designed to remove inventory related seasonality from their cashflows, enabling year-round positive operating cashflow. This higher net debt position during the period resulted in increased interest expense of $1.0M vs PCP, notwithstanding this, Comvita still delivered an NPAT ahead +19% vs PCP

Looking forward – exciting future ahead Comvita’s 2025 plan is designed to deliver a business model that achieves a GP of at least 60%, delivers long term investment in its brand by investing 15% in brand building activity and deliver a 20% EBITDA margin, Comvita again re-iterated that it was on track to deliver $50M earnings in 2025. This model, underpinned by its aim to be carbon neutral by 2025 and a global leader in ESG is designed to set Comvita up for long term profitable growth. It’s underpinned by its focus on continued delivery of its three-part plan to; 1: Stabilise performance 2: Transform the organisation 3: Build long-term resilience and growth Comvita’s talent backed skincare proposition is due to launch late in 2023 / early 2024 and is also showing some exciting potential. Talent and launch details will be shared as soon as finalised but expected to be before June 2023. Finally, Comvita highlighted that the total honey category (TAM) is forecast to grow from its current $9BN USD to $15BN USD by 2031 – an increase of around 67% and that category dynamics favour a high quality premium lifestyle brand like Comvita.


“The global honey market is expected to grow from $8.53 billion in 2022 to $12.69 billion by 2029, at a CAGR of 5.83% in the forecast period, 2022-2029”

Read More at:- https://www.fortunebusinessinsights.com/industry-reports/honey-market-100551


https://www.beeculture.com/honey-market-growth/

Honey Market Size to Worth USD 12.69 Billion by 2029 | At a CAGR of 5.83%

Companies covered in honey market are Bee Maid Honey Limited (Canada), , Comvita Limited (New Zealand), , Capilano Honey Ltd. (Australia), , Dabur India Ltd. (India), , Billy Bee Honey Products (Canada), , New Zealand Honey Co. (New Zealand), , Barkman Honey LLC (U.S.), , Yamada Bee Company (Japan), , Dutch Gold Honey Inc. (U.S.), , Golden Acres Honey (Canada) & other.
Source: Fortune Business Insights (https://www.globenewswire.com/en/search/organization/Fortune%20Business%20Insights)


https://www.mpi.govt.nz/resources-and-forms/economic-intelligence/market-insights-for-the-primary-sector/nz-export-statistics-and-trade-data-for-honey-pet-food-and-ice-cream/

Honey and bee products export data

l In 2022, the global honey market was valued at USD $8.5 billion. It is predicted to be worth USD $12.7 billion by 2029.

l The New Zealand European Union Free Trade agreement removes a 17.3% import tariff on mānuka honey. The tariff has been worth $40 million over the last 5 years.

l Mānuka has become popular in the cosmetics industry over the last 10 years. Its use has increased due to its potential benefits for the skin and its natural properties.

l New Zealand is the largest exporter of honey to China, accounting for 80% of imports.

l The percentage of online sales to US consumers has jumped from 3% in 2019 to 18% in 2023.


https://www.nbr.co.nz/business/is-the-future-of-new-zealand-manuka-honey-still-golden/

Is the future of New Zealand mānuka honey still golden?

A series of sweet harvests was dampened this year, but market insiders say the industry remains robust.

[winner69]

Good commentary valuegrowth

Always sounds good eh …..and I try very hard to like Comvita but something just doesn’t click for me

A producer of a premium high value product should be making decent profits but Comvita don’t. Their return on invested capital (equity + debt) is only about 6% …….not even covering their cost of capital ….ie economic value destroying valuegrowth.

As such CVT doesn’t deserve to be trading at around its current book value of $3.25 per share.

Dave says the future is bright and they going get to $50m EBITDA in a few years time …….even if they do ROIC will still be less than 10% which probably will cover their cost of capital ….and such maybe a share price a bit higher than book value whatever it is then ….maybe $3.50

So even if I have really started to like /love Comvita $4 share price in a few years time might be about right.

But then Dave might have found that elusive acquiror by then and we’ll never know if that $50m EBITDA was achieved.

[winner69]

Nice chart

[Valuegrowth]

My defensive stocks and bear etf had very bullish charts in world markets when others are falling apart last week.
Nice chart

[Valuegrowth]

Winner69

Ideal ROE for me is above 15. In some case, I don’t mind having ROE below 10 depend on the balance sheet, new developments, future earnings, market and peer comparison, type of sector to be in the particular time to protect capital, the trend and last but not least, going concern and so on. Most of the time my stocks are defensive in nature. I have experienced few defensive multi baggers in my stock market history. Defensive sector is very familiar to me and I have gained capital gain more than investing in tech stocks. NZ honey is also ideal for me. We can get clear idea about the company over the next one to three years. More I see the potential more I will accumulate. In short, My top favourite types of stocks are food and commodity stocks.Besides I like to invest in simple business that I can understand.

[Valuegrowth]

Thanks Winner69. Once I buy stocks I do research for number of years. Accordingly, I can take positions.

https://www.chinadaily.com.cn/a/202307/06/WS64a60c00a310bf8a75d6d834.html

Comvita to open more stores in country


Good commentary valuegrowth

Always sounds good eh …..and I try very hard to like Comvita but something just doesn’t click for me .A producer of a premium high value product should be making decent profits but Comvita don’t. Their return on invested capital (equity + debt) is only about 6% …….not even covering their cost of capital ….ie economic value destroying valuegrowth.



As such CVT doesn’t deserve to be trading at around its current book value of $3.25 per share.

Dave says the future is bright and they going get to $50m EBITDA in a few years time …….even if they do ROIC will still be less than 10% which probably will cover their cost of capital ….and such maybe a share price a bit higher than book value whatever it is then ….maybe $3.50

So even if I have really started to like /love Comvita $4 share price in a few years time might be about right.

But then Dave might have found that elusive acquiror by then and we’ll never know if that $50m EBITDA was achieved.

[Valuegrowth]

https://www.investing.com/news/stock-market-news/tech-valuation-the-highest-since-dot-com-bubble--analysts-432SI-3122306

New Zealand’s ground-breaking Free Trade Agreement with the European Union (https://www.farmersweekly.co.nz/politics/nz-set-to-sign-eu-trade-pact-soon/) should see the country’s exports boosted annually by $1.8 billion within the next 12 years, Prime Minister Chris Hipkins says.

There will be immediate tariff relief for kiwifruit, wine, onions, apples, mānuka honey and manufactured goods. It will also apply to most seafood, and other horticultural products.

“The winning sectors on the day are the likes of horticulture, seafood, wine, and honey, who will be delighted with the outcomes. Our two largest goods export sectors, red meat and diary, however, would have been hoping for more commercially meaningful outcomes for their exports.

“We are thrilled that the agreement also includes the definition of mānuka and a separate tariff recognising the inherent distinctiveness of mānuka as a taonga species exclusively from Aotearoa New Zealand,” Apiculture NZ chief executive Karin Kos said.

“The EU’s recognition of mānuka as a taonga species is significant in helping progress the next step in securing geographical indications for mānuka honey, an initiative that is strongly supported by both industry and iwi.”

The FTA contains another important “EU first”– a Māori Trade and Economic Co-operation chapter that will create a platform for greater engagement with the EU on Māori economic and trade interests.

[Sideshow Bob]

Not even flagged as price sensitive....whaaaaaaaaattt!! :mellow:

Comvita achieve B Corp certification
https://www.nzx.com/announcements/416569

[winner69]

Not even flagged as price sensitive....whaaaaaaaaattt!! :mellow:

Comvita achieve B Corp certification
https://www.nzx.com/announcements/416569

Great effort by team …they say B Corp opens up so many opportunities

Comvita to work in harmony with bees and nature to heal and protect the world…… nice

[Sideshow Bob]

https://www.nzx.com/announcements/416745

Headlines
- Record revenue $234M +12.1% vs PCP
- +$25M and +12.1% vs PCP
- H2 revenue +17.4% vs PCP
- All market segments showed double digit revenue growth
- Greater China revenue over $100M for the first time
- Ecommerce share of revenue 41.7% +19.1% vs PCP
- Gross profit 58.0%, normalised 59.5%* in line with plan
- Operating profit $24M +18.7% vs PCP
- $33.5M EBITDA after ERP +11.4% vs PCP
- NPAT after ERP $13.1M +2.8% vs PCP
- Record investment in our brand $30.5M supporting strong revenue growth
- Net debt $53.4M in line with forecast
- Inventory $136M +3% vs PCP
- Positive operating cashflow of $8M, $29M H2
- Fully imputed final dividend of 3.0 cps declared
- Full year FY23 dividends of 5.5 cps in line with PCP

[winner69]

You’ve got to admit David is amazingly good at spinning a good yarn

[Rawz]

inventory level always blows my mind

I take it they count the honey in the hives.

[winner69]

A couple of subtle accounting changes made to make things look a bit healthier

[Sideshow Bob]

A couple of subtle accounting changes made to make things look a bit healthier

All about the headline mate, all about the headline........

[winner69]

All about the headline mate, all about the headline........

….and the story / rave that goes with it

[sunnysleeper11]

winner
quite a few newbies to all this reporting and keen to learn
could you let me and others know what they've left out/changed of the report that we could consider in this and other company reports
thanks!

[Gerald]

Hmm EBITDA up $3m, interest expense up $3m, but all below the important line so all good :t_up:

[kiwikeith]

If they could halve their inventory, net debt would go to zero.

[Rawz]

Inventory at $136m and revenue $234m so they dont turn it over that quick.

[BlackPeter]

A couple of subtle accounting changes made to make things look a bit healthier

True - I am wondering whether the new term "NPAT after ERP" (NPATAERP) will make it into the next accounting standard?

But wait, aren't they reporting the NPAT before deducting the cost for the ERP system? ... which sort of makes my mind boggle what they do with the meaning of the word "Net"?

But still - wouldn't this be NPATBERP?

[winner69]

Inventory at $136m and revenue $234m so they dont turn it over that quick.

Cost of Sales $98m (presume the cost of honey they sold)

So enough honey to cover the next 18 months sales ...... without adding to the stock pile lol

[percy]

Cost of Sales $98m (presume the cost of honey they sold)

So enough honey to cover the next 18 months sales ...... without adding to the stock pile lol

That is not good business.

[winner69]

winner
quite a few newbies to all this reporting and keen to learn
could you let me and others know what they've left out/changed of the report that we could consider in this and other company reports
thanks!

The sneaky one this time in the Cash Flow Statement was taking interest out of operating cash flow (normally goes there) and moving it down to financing cash flows.

Reported ‘Cash flows from operating activities’ was $8.083m. Take off the $5.704m of interest paid it’s really $3.009m if reported as in the past.

Lease / rent paid of $4.898m should come off as well ….but it seems normal practice these days to show lease / rent as a finance cost but I reckon it’s a day to day operating cost

So to me cash flow from day to day operations was an outflow of $1.889m

They then spent $20.7m on property, plant and such stuff (capital …investing cash flows

All up they burned through $22.6m in cash in F23 …but still paid $4m in dividends.

All funded by borrowing another $22m

Cool eh …..cash is king.

[winner69]

True - I am wondering whether the new term "NPAT after ERP" (NPATAERP) will make it into the next accounting standard?

But wait, aren't they reporting the NPAT before deducting the cost for the ERP system? ... which sort of makes my mind boggle what they do with the meaning of the word "Net"?

But still - wouldn't this be NPATBERP?

Next could be NPATBERPBBCORP ….taking off the costs of getting/retaining BCorp

[Rawz]

ROIC must be very very low. Less than their Westpac facility rates in the 7% range. shareholder value destruction?

[BlackPeter]

ROIC must be very very low. Less than their Westpac facility rates in the 7% range. shareholder value destruction?

RoE is 6.1%, but admittedly - it was still worse the years before - 5.6% in 2022 and 3.7% in 2021; So, clear signs of improvement starting though from a quite low base :);

On the other hand - if you consider that a significant part of their equity is this sticky stuff ... maybe their return is not too bad. I wouldn't pay a lot of interest either for the privilege of holding honey.

[forest]

I am always interested in the Directors shareholding at the end of the financial year. Normally this is reported in the annual report, however it is not obvious to me in the CVT 2023 annual report. Has anybody else been able to find it?

[Valuegrowth]

It looks like higher cash flow is on the cards for CVT. Besides when compare with others they have done well despite global pressures.

[nztx]

Inventory at $136m


there's the risk with inventory values with this one on what happens between now & if/when it gets shot out the door, as seen in the past. Global markets, particularly China not looking all that good either going forwards

[Sideshow Bob]

Next could be NPATBERPBBCORP ….taking off the costs of getting/retaining BCorp

Post of the Day!! :lol:

[winner69]

RoE is 6.1%, but admittedly - it was still worse the years before - 5.6% in 2022 and 3.7% in 2021; So, clear signs of improvement starting though from a quite low base :);

On the other hand - if you consider that a significant part of their equity is this sticky stuff ... maybe their return is not too bad. I wouldn't pay a lot of interest either for the privilege of holding honey.

ROIC is only 4.6% …this is return on all capital employed, equity plus debt

I’m sure CVT cost of capital is substantially higher than 4.6% …..PWC had 9.3% in a recent report …I’d say in reality higher.

Economic value destruction going on here ….big time methinks

[Rawz]

So NPAT growth -13.5% and ROIC 4.6%

Why bother

[winner69]

So NPAT growth -13.5% and ROIC 4.6%

Why bother

CVT shhare price was well over 12 bucks a while ago so plenty of upside from here eh rawz ….esp seeing things are coming right

Share price was $3.20 odd when David was appointed in 2019 …….so he’s got of catching up to do still

[Rawz]

CVT shhare price was well over 12 bucks a while ago so plenty of upside from here eh rawz ….esp seeing things are coming right

Share price was $3.20 odd when David was appointed in 2019 …….so he’s got of catching up to do still

Its not even cheap at these prices.

P/E ratio now 20!

Book value is just below 1x.

[Valuegrowth]

One good thing is it's trading below the pe ratio of world markets. It's also a defensive play(consumer staples) People have to eat and drink in good and bad times. Other thing I am going to watch is their future earnings after acquisitions and expansion. Don't forget there will be grade demand for high quality food in the Coming decade. Asia Pacific region is home to 60 percent of the world's population. I bought few food stocks targeting population growth in the Coming decade. Future earnings are better than current earnings. Finally, CVT, s performance is not that bad given the environment of high cost of doing business. More than half of my portfolio consist with food which include few multibaggers.

[BlackPeter]

One good thing is it's trading below the pe ratio of world markets. It's also a defensive play(consumer staples) People have to eat and drink in good and bad times. Other thing I am going to watch is their future earnings after acquisitions and expansion. Don't forget there will be grade demand for high quality food in the Coming decade. Asia Pacific region is home to 60 percent of the world's population. I bought few food stocks targeting population growth in the Coming decade. Future earnings are better than current earnings. Finally, CVT, s performance is not that bad given the environment of high cost of doing business. More than half of my portfolio consist with food which include few multibaggers.

Are you sure you understand Comvitas business proposition? They are clearly not the consumer staple you are talking about, providing some sweat spread for the breakfeast toast. They sell hype (i.e. the hope that their honey does miracles for your health): 500g of their honey cost 10 times the price of a normal jar of honey in the supermarket, and they try to get into the beauty business as well.

Might all work and turn out ot be very profitable (if it works out), but consumer staples they clearly are not.

[kiwikeith]

Are you sure you understand Comvitas business proposition? They are clearly not the consumer staple you are talking about, providing some sweat spread for the breakfeast toast. They sell hype (i.e. the hope that their honey does miracles for your health): 500g of their honey cost 10 times the price of a normal jar of honey in the supermarket, and they try to get into the beauty business as well.

Might all work and turn out ot be very profitable (if it works out), but consumer staples they clearly are not.

Yes Comvita is not the stock if you are thinking we always have to eat. Their cheapest honey blend is about $30 for 500g. However it is opinion that they are selling hype. A lot of people swear by the health benefits of manuka honey (and olive leaf extracts).

[william67]

Comvita Manuka Blend Honey 500g ----$13 at Pak'nSave
https://www.paknsave.co.nz/shop/product/5007828_ea_000pns?name=manuka-blend-honey

[william67]

The real winner of this buiness is David Banfield . Do you see the 1,ooo,ooo dollars salary? It is marvelous, compared with 11 millions dollars profit for the whole business.

[Valuegrowth]

This is fairly old link.Hope they can take thier businesses to the next level.
https://www.nzherald.co.nz/bay-of-plenty-times/news/ceos-take-13m-after-pay-cut/IHUF2QXW4XOCRIXDB5PAZFA3MQ/

I had to do a leadership style for one of my assignments for my studies. I chose one CEO of a leading comapnyy who has a vision for the long run. For me he is the best CEO in NZ. As their stock prices are currently high, I am waiting patiently for a pull back or sell-off in the market to park my money there. For me it is number one company in NZ. Stocks prices never stay in the same place. Just like human beings they will have different behavior patterns at different times.

Curently I see some trading opportuniy in CVT.

https://www.marketscreener.com/quote/stock/COMVITA-LIMITED-6497045/news/Transcript-Comvita-Limited-2023-Earnings-Call-Aug-22-2023-44665117/



The real winner of this buiness is David Banfield . Do you see the 1,ooo,ooo dollars salary? It is marvelous, compared with 11 millions dollars profit for the whole business.

[BlackPeter]

Yes Comvita is not the stock if you are thinking we always have to eat. Their cheapest honey blend is about $30 for 500g. However it is opinion that they are selling hype. A lot of people swear by the health benefits of manuka honey (and olive leaf extracts).

I don't think that your example (people swearing on whatever) supports your statement.

But apart from that - selling hype can be an amazing business proposition (potentially one of the best). Look at it that way: any religion (obviously excluding the ones you, I and any of the other readers of this post subscribe to, which are all mutually exclusive fountains of the one truth) sells hype, and most of them (all of them?) live from this business very well indeed.

But back to Comvita ... many people swear on many things, and sometimes what they think to observe is based on the placebo effect, and sometimes it might be something else. I didn't say that it is impossible that Manuka honey has some health effects on top of what other honey does, but we don't know. Selling this hope or speculation is what I meant with "selling hype"

[winner69]

David no doubt still looking for somebody to take over Comvita ….he’ll find one one day

He reckons Comvita cheap as …not what’s to like about the price ……company that is not the product.

[sunnysleeper11]

The sneaky one this time in the Cash Flow Statement was taking interest out of operating cash flow (normally goes there) and moving it down to financing cash flows.

Reported ‘Cash flows from operating activities’ was $8.083m. Take off the $5.704m of interest paid it’s really $3.009m if reported as in the past.

Lease / rent paid of $4.898m should come off as well ….but it seems normal practice these days to show lease / rent as a finance cost but I reckon it’s a day to day operating cost

So to me cash flow from day to day operations was an outflow of $1.889m

They then spent $20.7m on property, plant and such stuff (capital …investing cash flows

All up they burned through $22.6m in cash in F23 …but still paid $4m in dividends.

All funded by borrowing another $22m

Cool eh …..cash is king.



Thanks Winner. Great to have more info.
I can't understand why consistent accounting isn't mandatory.

[kiwikeith]

Comvita Manuka Blend Honey 500g ----$13 at Pak'nSave
https://www.paknsave.co.nz/shop/product/5007828_ea_000pns?name=manuka-blend-honey

Thanks for that. It seems to be the exact same product that sells on the Comvita website for $28. Goes to show it is worth shopping around.

[Sideshow Bob]

https://www.nzx.com/announcements/419094

Comvita Limited (NZX:CVT) would like to announce that, as previously announced on 9 March 2023, Non-Executive Director Luke Bunt has confirmed that he is retiring from the Board of Directors effective 30 September 2023.
Luke joined the Board in July 2014 and has had a significant role in guiding the company through substantial change over that time, including as Chair of the Audit and Risk Committee and as Deputy Chair. Chairman Brett Hewlett said "I want to thank Luke for the valuable contributions he has made during his 9 years tenure. Most significant was the support and wise counsel that Luke has provided in his capacity as Deputy Chair during a period of significant change for the business. He leaves us at a time when the Company is on a much more stable footing and performing strongly."

[Valuegrowth]

Some insider selling have taken place.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/417782/402408.pdf

[winner69]

Latest rave from David at ASM

POISED FOR TAKEOFF

Got to give credit to David …he does cool presentations

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/419424/404449.pdf

[BlackPeter]

Latest rave from David at ASM

POISED FOR TAKEOFF

Got to give credit to David …he does cool presentations

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/419424/404449.pdf

He does - doesn't he?


E reretau ana, e mahi ngātahi ana mātou ko ngā pi me te taiao I Aotearoa, hei whakaora, hei manaaki āno I te Ao Tūroa.

Wow.

Apparently in English it means something like


Working in harmony with bees and nature in New Zealand to heal and protect the world.

I guess, who would not want to be part of this amazing enterprise and play their part in keeping harmony with nature and protecting the world?

... and even the manuka they are planting is healing our land ...

Notice however that their revenues are still somewhat China centred. What is the opposite of diversification? So - lets hope, that China gets the harmony message instead of following in Putins divisive (and business damaging) foot steps.

And they say they even found a new substance "Comvita Lepteridin" in Manuka honey. Never realised that you can patent naturally occurring substances, but that's what they say they have done :confused: Geniusses?

But hey - here is even something for greedy investors: Forecasting $50m EBITDA by 2025 (and no, I didn't read the fineprint). Sure, earnings without the "BITDA" tail would be still nicer, but I guess he needs to have still room to surprise :) ;

[Sideshow Bob]

https://www.nzx.com/announcements/422379

Comvita Limited (NZX:CVT) is today providing an update on its current trading performance, the forecasted impact on its interim results and for the full year ending 30th June 2024.

As has been widely reported, general consumer sales and sentiment in China and North America have been negatively impacted by broader concerns over the economy and in the case of the US, the impact of inflation on discretionary expenditure. As a result, the total honey category and Mānuka as a subcategory, has also been negatively impacted. This has meant that Comvita’s revenue for the first four months of the financial year, including revenue from HoneyWorld™, is approximately 10% down on the corresponding four months last year. This has directly impacted earnings with its reported EBITDA* approximately $6M behind the PCP year to date. This has also had a flow on impact to inventory, net debt and cashflow.

Given the impact of a slower economy in China and the US in the first four months, Comvita is forecasting that its half year revenue will be adverse to PCP by up to 5% and that reported EBITDA after ERP investment for the interim result is expected to be down 20% vs PCP. Net debt, at 31 December, is forecast to be between $80M and $85M, including debt for the acquisition of HoneyWorld™, inventory is forecast as at 31 December to remain flat vs PCP

Furthermore, Comvita advises that its forecast for its full year results ending 30 June 2024 is for revenue between $245M and $255M, reported EBITDA after ERP investment to be between $33M and $38M and for an improvement on its interim net debt position aided by positive operating cashflows. ERP investment remains on time and on budget. Comvita retains its FY25 guidance of earnings of c$50M.

Comvita does not believe the first four months result is indicative of its underlying trading and is encouraged by the November performance which points to improving consumer confidence and demand.

Comvita sees demand in its main China market recovering and recently saw its performance in the 11:11 festival deliver revenue growth of 6% vs PCP, with domestic channels improved by 12% and Cross Border Ecommerce (CBEC) by 1% (verses a total China honey market that was double-digit down). This gives Comvita confidence that its business model is working, and that trading associated with this update is timing related.

In addition, during the recent China International Import Expo (CIIE) Comvita experienced strong interest for its core premium health and wellness ranges and elevated demand for its new products. Comvita was proud to be one of 26 global brands, and the only New Zealand brand, that were invited to open the expo with Premier Li, further underlining the strength of brand equity in the crucial China market.

Comvita uses its owned retail footprint as a lead measure to assess true underlying demand direct with consumers and is pleased to report that its three retail markets; Hong Kong SAR, Korea and Singapore all report strong sales out performance, further demonstrating robust consumer demand. Comvita reported that performance in its newly acquired HoneyWorld™ business is progressing according to plan.

Commenting David Banfield, CEO said “It’s disappointing to share today the impact of the economic slowdown in China and North America on us in the first four months of the year and its likely knock on impact for the full year. We are forecasting that this is temporary in nature, as we see improving underlying demand and improving consumer sentiment data. Unfortunately, we do not believe it will be possible to make up this impact in this financial year. We do however retain our FY25 forecast and guidance”.
*EBITDA is a non-gaap measure

ENDS

[winner69]

Not a very good announcement eh Bob ……but David no doubt excited about the future

Just a matter of time before everything falls into place

Strange how share price been a bit weak last week or so ….market expecting this eh ….market often right

[winner69]

No worries …..first hall ebitda likely to be down 20% on PCP but full year at $38m will be 10% plus higher than …….and the following year even more of a bonanza getting to $50m

[Gerald]

"Comvita does not believe the first four months result is indicative of its underlying trading"

Bit of a weird sentence, by the very definition actual results are indicative of underlying trading.

[Balance]

Not a very good announcement eh Bob ……but David no doubt excited about the future

Just a matter of time before everything falls into place

Strange how share price been a bit weak last week or so ….market expecting this eh ….market often right

Not good.

Downgrades come on threes unless CVT is an exception.

[kiwikeith]

No worries …..first hall ebitda likely to be down 20% on PCP but full year at $38m will be 10% plus higher than …….and the following year even more of a bonanza getting to $50m

With a current market cap of $190m I am guessing the market is not over confident that the $50m will be achieved.

[winner69]

Wasn’t that long ago CVT share price nearly hit $12

[nztx]

"Comvita does not believe the first four months result is indicative of its underlying trading"

Bit of a weird sentence, by the very definition actual results are indicative of underlying trading.


Indeed

Chinese & other markets going to take off again faster than bees off the flowers .. or maybe not ?

SP seems to be losing some elevation today .. looks like the story hasn't excited some

Go back 3-5 years .. some may have memories of what happened back then ..


If CVT can accurately crystal ball the Chinese markets & global markets turning completely darling again overnight in next 6 months, 12 months or 2 years - then I'm an Eskimo ;)



These outfits with their internal enterprise & periodic accounting will know on a monthly & quarterly basis what is or isn't happening. Different story for the poor sucker out on the street - what's it - a spit out 2-3 months after half or FY balance date ? ;)

[nztx]

Wasn’t that long ago CVT share price nearly hit $12


$3.75 looks like the 2 year recent high in Jan 2022

12 dollar must have been prior to an earlier trail of carnage :)

[william67]

The capability of David and Andy should be suspected by shareholders and board members for this result, after $50m equity raised, 4years time, much lower cost of manuka honey purchased,

$50M EBITDA in FY2025 was touted by David over two years, the market doesn't buy it.

Don't forget China was locked down this time of last year, is anything wrong with their way of marketing in this fast changing world? do they really know how to make more sales?

[winner69]

David spins a great yarn ….but even though many records share price hasn’t gone anywhere since he started

[william67]

"EBITDA after ERP investment" the word "after" is disgusting, when the real meaning is "before"。Munger once quipped, "Every time you saw that word (adjusted EBITDA), you just substituted the phrase with 'bull**** earnings

[william67]

"Comvita does not believe the first four months result is indicative of its underlying trading"

Bit of a weird sentence, by the very definition actual results are indicative of underlying trading.
This means they didn't figure out what happened in their sales. We could see all "shows" they attended, in another word "all the spending" but hardly to see how do they turn those cost to quality revenue growth.

[Balance]

This mean they didn't figure out what happened in their sales.

Rampant discounting of manuka honey out there still and no signs of abating.

Sold my CVT shares when I saw UMF10+ (Egmount Honey) manuka honey being discounted down to $29.95 (1 kg jar) at Costco this year.

Comvita's advertised price is $84.99 for a 500g jar!

[william67]

Maybe it is a good time to acquire Comvita Limited!

[Balance]

Maybe it is a good time to acquire Comvita Limited!

Not when Egmont Honey is still selling the same 1 kg jar of UMF10+ honey for $49.95 vs Comvita’s $84.99 for 500g!

[william67]

Not when Egmont Honey is still selling the same 1 kg jar of UMF10+ honey for $49.95 vs Comvita’s $84.99 for 500g!
Do you think Comvita will involve price war with any other manuka honey brands? check up this：https://www.costco.com/CatalogSearch?dept=All&keyword=manuka+honey

[william67]

Charlie Munger, investing genius and Warren Buffett's right-hand man, dies at age 99

[william67]

Pinduoduo‘s market value surpasses Alibaba
PDD Holdings Inc - ADR/ temu

Mkt cap
195.89B



Alibaba Group Holding Ltd - ADR/taobao/tmall/


Mkt cap
190.45B




JD.Com Inc


Mkt cap
43.46B





https://asia.nikkei.com/techAsia/PDD-rattles-Alibaba-and-ByteDance-slashes-games#:~:text=PDD's%20triumph%20came%20more%20quic kly,company%20listed%20in%20the%20U.S.

[winner69]

Dave always does a great sell job, his rave must have impressed the judges for these Awards

In BusinessDesk (and paid for by Comvita)


(NZX:CVT), the premium natural health and wellness products provider, proudly announces its significant achievement in winning the coveted Best Growth Strategy category at the annual Deloitte Top 200 Awards.

Comvita CEO David Banfield stated, "We’re thrilled to receive the Best Growth Strategy award at the Deloitte Top 200 Awards. This recognition is a testament to the hard work and dedication of the talented Comvita team, around the world and here at home in Aotearoa New Zealand, who’ve played a crucial role in driving our recent growth and success."

Comvita's consumer focus and transformation program, has a focus on sustainability, social and environmental impact and connection to its amazing founding philosophy nearly 50 years ago. This has resonated with discerning consumers in their key markets around the world and has enabled Comvita to achieve strong levels of growth. Looking ahead, Comvita remains on track to deliver its 2025 EBITDA target of c$50M (20%) as they celebrate their 50th year.

[winner69]

And CVT share price in 220’s ……if you forget about the couple on months at Covid onset time share price hasn’t been this low s for over 10 years

Must be a bargain ……

[winner69]

CVT share price on a roll lately ….up from recent low of 220 to 238 ….could be back to 3 bucks pretty soon.

Did think 220 was rather oversold

Punters must believe in that award winning growth strategy

Looking forward to Dave’s next rave ……possibly good news out of China

[Habits]

And CVT share price in 220’s ……if you forget about the couple on months at Covid onset time share price hasn’t been this low s for over 10 years

Must be a bargain ……

Been riding this baby for a while winner. Don't sell now

[Valuegrowth]

CVT share price on a roll lately ….up from recent low of 220 to 238 ….could be back to 3 bucks pretty soon.

Did think 220 was rather oversold

Punters must believe in that award winning growth strategy

Looking forward to Dave’s next rave ……possibly good news out of China
Volume is low.

[Getty]

Comvita CEO David Banfield stated, "We’re thrilled to receive the Best Growth Strategy award at the Deloitte Top 200 Awards. This recognition is a testament to the hard work and dedication of the talented Comvita team, around the world and here at home in Aotearoa New Zealand, who’ve played a crucial role in driving our recent growth and

I assume he is talking about the bees?

And as for any talk of Comvita Manuka honey being $84.99 for 500g vs someone else's being @ $45 for 1 kg, the difference is in the quality and how its made isn't it?

At least that's what a women's boutique would say...

[Habits]

I assume he is talking about the bees?

And as for any talk of Comvita Manuka honey being $84.99 for 500g vs someone else's being @ $45 for 1 kg, the difference is in the quality and how its made isn't it?

At least that's what a women's boutique would say...

And of course the hive is buzzing about winning the award

[Getty]

And of course the hive is buzzing about winning the award
Yep, it's super sweet all right.

They know to wing it.

[Sideshow Bob]

CVT share price on a roll lately ….up from recent low of 220 to 238 ….could be back to 3 bucks pretty soon.

Did think 220 was rather oversold

Punters must believe in that award winning growth strategy

Looking forward to Dave’s next rave ……possibly good news out of China

Up another 11c/4.5% today.

The market listening to Winner....:sleep:

[winner69]

Share price still going up

But Dave needs to print a good story to keep momentum up

[Sideshow Bob]

Another downgrade....

https://www.nzx.com/announcements/425571

Comvita Limited NZX:CVT is today providing a further trading update following completion of its first half FY24 trading (unaudited) and an update to its forecast full year result for the year ending 30th June 2024.

Today's trading update is driven by weaker near-term consumer sentiment in China, a customer change in the US and a non-cash FX translation loss. Encouragingly, market share in key markets of China and US have remained strong, and sales in the last 10 weeks' lead up to Chinese New Year show improving trends. Management remains committed to its strategic plan which has delivered three and a half years of consistent growth in line with market guidance, positioning the company well once normalised trading resumes.

Summary

• H1 FY24 Revenue was $103M, down 8.1% vs prior corresponding period (pcp)
• H1 FY24 EBITDA* (excluding ERP System) is expected to be $9.5M, down 32% vs pcp. Excluding a non-cash FX loss, the change would have been down 22% versus previous guidance expecting it to be down 20%
• FY24 Revenue is now expected to be $225M to $235M (previously $245M to $255M)
• FY24 Reported EBITDA (after ERP investment) is now expected to be $30M to $35M (previously $33M to $38M)
• Drivers: Driven by reduced consumer demand, most notably in Comvita's largest market, China, and a moderation in North American demand, coupled with a distribution change
• Gross Margin remained around 60%. Market share is stable or growing in key markets
• Impact on FY25 Plan: Comvita is focussed on returning to consistent growth once trading conditions normalise, and its plan for FY25 EBITDA of $50M remains feasible, subject to timing of restoration of a more stable trading environment

H1 FY24 update

Comvita will release its H1 FY24 results on 21st February 2024 (refer to Tuesday 30th January announcement).
Comvita’s unaudited revenue for the half year ending 31st December 2023 was $103M, a reduction of $8.6M vs pcp, with recent acquisition HoneyWorld™ contributing $6.8M in revenue. Thus, on a like for like basis, revenue excluding HoneyWorld™ fell by $14M (-12%) vs pcp, after adjusting for Comvita sales to HoneyWorld™ in pcp of $1.4M.

Comvita’s unaudited EBITDA for the period (after adding back its one-off investment in its ERP system) is expected to be $9.5M which is approximately 32% down vs pcp. Comvita had previously forecast EBITDA (after ERP) to be 20% down vs pcp. There were $1.2M non-cash FX adjustments at 31st December relating to the strengthening of the NZD in the month, which could not have been forecast in the November trading update. Excluding the FX impact above, EBITDA would have been materially within guidance of 20% down.

Comvita’s unaudited NPAT (Net Profit after Tax) for the period is expected to be a loss of $3.2M ($0.8M NPAT after ERP) compared to a profit of $4.2M in the prior period. Net debt at the half year was $85.8M and inventory $143M.

FY24 guidance update

Looking to the full year, given subdued consumption in China and North America, Comvita has revised its full year revenue range to between $225M and $235M, compared to November guidance of $245M and $255M. Reported EBITDA (after ERP investment) is now forecast to be between $30M and $35M, compared to November guidance of $33M and $38M.

Comvita has identified c$8M of operating expenditure savings that can be realised in the second half to support delivery of this forecast. These comprise variable marketing and sales costs, performance-related incentives and reduction of transformation investment. Comvita is forecasting an improvement in its net debt position and a reduction in inventory, which will support positive operating cashflows in H2.
Update on trading conditions

China revenue for the half year was $33M, down 19% on pcp. The China revenue slowdown was driven by macro-economic weakness, impacting the premium consumer category. Sales in China during November and December showed improvement towards a more stable trading pattern. Reflecting this, China market Q1 FY24 revenue was -26% vs pcp and Q2 revenue -15% vs pcp. Q2 FY24 lifted by 76% vs Q1 FY24, an improvement beyond usual seasonality of c50-60% quarter on quarter (QoQ).
Revenue in Rest of Asia improved 52% or $6.6M to $19.2M driven by strong growth in Korea of 13% to $8.6M and Singapore of growth of $5.7M. ANZ revenue improved by $1.2M or 7% to $19.3M.

Comvita uses retail store presence in Hong Kong SAR, Singapore and Korea as a lead measure for consumer demand in the region, including China and is pleased to report good sell out performance in all three markets.

North America revenue for the half year was $13M, down 37% on pcp. North America sales were impacted by the loss of one customer in one region, inflationary pressure on discretionary spend and a disproportionately strong first half in the pcp. Comvita is seeing improvement in sales in the Natural and Grocery channel in America and since Christmas has signed new additional distribution agreements in this market.

Management outlook

Comvita’s trading fundamentals during the period remain sound. Market share grew in key markets, pricing remained consistent and the gross margins that are integral to the delivery of its FY25 plan remained around 60%.

This gives the board and management confidence that the current performance is revenue related, short term in nature and will return to normal. Comvita has further reviewed its FY25 plan to deliver $50M EBITDA and has confidence that this can still be delivered. However, this is dependent on a return to normal trading conditions in both China and North America, the timing of which is uncertain. Comvita has reviewed independent market data showing forecast consumer spending strengthening in 2024 and thus expects a steady improvement in consumption through the second half.

Commenting, David Banfield (Group CEO) said “We remain confident that our business model, premiumisation of the Mānuka honey category and long-term investment in our brand, puts us in a strong position once macro-economic conditions stabilise. We continue to maintain or grow share in our core markets, and we see premium retailers in the US and Middle East turn to Comvita as the only brand committed to growing the category with two new high-quality partnerships confirmed for H2. We remain committed to deliver cost reductions in H2 to protect our earnings and are forecasting a further reduction of debt and inventory in H2 supported by positive operating cash flow.”

“After three and a half years of consistent performance growing both top and bottom-line in-line with our market guidance and strategic plan we are disappointed in this result, which reflects current trading conditions. The team and I are absolutely focused on doing everything possible to ensure a return to our pattern of consistent long-term growth”.

[winner69]

Good eh Bob but aniother good rave from Dave ….all bright and rosy when things come right

A few different profit measures mentioned but this is the one that matters -Comvita’s unaudited NPAT (Net Profit after Tax) for the period is expected to be a loss of $3.2M ($0.8M NPAT after ERP) compared to a profit of $4.2M in the prior period.

[Sideshow Bob]

Good eh Bob but aniother good rave from Dave ….all bright and rosy when things come right

A few different profit measures mentioned but this is the one that matters -Comvita’s unaudited NPAT (Net Profit after Tax) for the period is expected to be a loss of $3.2M ($0.8M NPAT after ERP) compared to a profit of $4.2M in the prior period.

They aren't blaming the weather, yield, conditions or the bees being lazy.......that must be for the next one! :sleep:

[Balance]

Downgrades come in 3s as we all know by now.

Latest downgrade is #2?

[Toddy]

I love a business plan that banks on 'things returning to normal' to achieve forecasts.

[Balance]

Downgrades come in 3s as we all know by now.

Latest downgrade is #2?

Yup - downgrade #2 so at least one more to go.

Sp looks like it's going to have a $1 ... in front of it soon?

[Sideshow Bob]

Yup - downgrade #2 so at least one more to go.

Sp looks like it's going to have a $1 ... in front of it soon?

Yup, almost.....down 7% to $2.05, not much on the bid and next is $2.00.

Only a matter of time I'd say

[Goob]

Cutting investment in the business just to make a stretched second half guidance you set yourselves? CVT is the basket case for everything that's wrong with companies setting financial targets.

"Comvita has identified c$8M of operating expenditure savings that can be realised in the second half to support delivery of this forecast. These comprise variable marketing and sales costs, performance-related incentives and reduction of transformation investment."

[Toddy]

One line says that the Board has confidence and will continue to implement the new strategy.

The next says reducing transformation investment.

Guess that the second line is from the CEO.

[Sideshow Bob]

$2.00 now.

Ask at $1.97, bid side very light......best now $1.80

[percy]

Dave always does a great sell job, his rave must have impressed the judges for these Awards

In BusinessDesk (and paid for by Comvita)


(NZX:CVT), the premium natural health and wellness products provider, proudly announces its significant achievement in winning the coveted Best Growth Strategy category at the annual Deloitte Top 200 Awards.

Comvita CEO David Banfield stated, "We’re thrilled to receive the Best Growth Strategy award at the Deloitte Top 200 Awards. This recognition is a testament to the hard work and dedication of the talented Comvita team, around the world and here at home in Aotearoa New Zealand, who’ve played a crucial role in driving our recent growth and success."

Comvita's consumer focus and transformation program, has a focus on sustainability, social and environmental impact and connection to its amazing founding philosophy nearly 50 years ago. This has resonated with discerning consumers in their key markets around the world and has enabled Comvita to achieve strong levels of growth. Looking ahead, Comvita remains on track to deliver its 2025 EBITDA target of c$50M (20%) as they celebrate their 50th year.

Results shows how poor the judges judgement was.
No surprises to us however.

[winner69]

$2.00 now.

Ask at $1.97, bid side very light......best now $1.80

Was $3.48 about 6 months ago …….before drifting down close to $2.00

And that recent Dave Rave got price back to $2.60:on inspired buying

But bugger it it’s heading to 10 year lows

[Balance]

Was $3.48 about 6 months ago …….before drifting down close to $2.00

And that recent Dave Rave got price back to $2.60:on inspired buying

But bugger it it’s heading to 10 year lows

Next downgrade (#3 of at least 3 downgrades) could see the sp back down at $1.50, where the sp was 10+ years ago.

One to avoid until then.

[winner69]

Next downgrade (#3 of at least 3 downgrades) could see the sp back down at $1.50, where the sp was 10+ years ago.

One to avoid until then.

CVT was well over 10 bucks a few years ago …just like Synlait

Those were the glory days …how the mighty have fallen

Wouldn’t think B Corp got anything to do with it

[kiora]

Ouch
And stock turnover still around 2 x?
How can this ever be improved?

[Toddy]

Support at around $1.80.

[Greekwatchdog]

CVT was well over 10 bucks a few years ago …just like Synlait

Those were the glory days …how the mighty have fallen

Wouldn’t think B Corp got anything to do with it

Out of NZ Herald..
At home, Comvita was down 31c or 14.09 per cent to $1.89 – its lowest share price since early September 2011. Comvita’s low point was 82c on May 1, 2009, with a peak of $12.55 on the same date in 2016.

[Toddy]

Out of NZ Herald..
At home, Comvita was down 31c or 14.09 per cent to $1.89 – its lowest share price since early September 2011. Comvita’s low point was 82c on May 1, 2009, with a peak of $12.55 on the same date in 2016.

Atleast the all time low looks as safe as houses.

[nztx]

What are the odds that's skrewed any chance of or a knifing over of the March Interim Dividend ?

usually only a 2.5c dish out but hey, when the chips are down, out comes the preheated knife ..

$1.80 might be under pressure once that goes down ;)

The Honey Warehouse might be following a similar trajectory to another Warehouse .. but then the other lot probably manage a better stock turn ;)

[Habits]

Volume for the day was way up on normal, a case of get out at any price so might expect a bit of bounce after the carnage. How things have changed from mid to high 3s not that long ago when there were share buy backs and a good deal of confidence.

[winner69]

Volume for the day was way up on normal, a case of get out at any price so might expect a bit of bounce after the carnage. How things have changed from mid to high 3s not that long ago when there were share buy backs and a good deal of confidence.

They bought back shares to give to employees …presumably for doing great work

Most at over 3 bucks ….employees probably still own them

[Balance]

They bought back shares to give to employees …presumably for doing great work

Most at over 3 bucks ….employees probably still own them

One of those Employees’ option schemes - only upside, no downside?

And bugger all number of shares per employee in any case. Unlike of course the share option packages of the executive management.

[Balance]

Rampant discounting of manuka honey out there still and no signs of abating.

Sold my CVT shares when I saw UMF10+ (Egmount Honey) manuka honey being discounted down to $29.95 (1 kg jar) at Costco this year.

Comvita's advertised price is $84.99 for a 500g jar!

The alarm bells rang loud and I am pleased I listened to them!

And Costco is still selling seemingly unlimited amount of manuka honey at heavily discounted prices!

Latest is Puriti UMF10+ manuka honey 1 kg jar for $34.99.

Compare that price with Comvita's UMF10+ at $114.90!

Sp has a long way to fall - like its manuka honey pricing.

Ouch!

[william67]

Look at the positive side when Sp came to this low.
David Banfield (Group CEO) said “We remain confident that our business model, premiumisation of the Mānuka honey category and long-term investment in our brand, puts us in a strong position once macro-economic conditions stabilise. We continue to maintain or grow share in our core markets, and we see premium retailers in the US and Middle East turn to Comvita as the only brand committed to growing the category with two new high-quality partnerships confirmed for H2. We remain committed to deliver cost reductions in H2 to protect our earnings and are forecasting a further reduction of debt and inventory in H2 supported by positive operating cash flow.” "The team and I are absolutely focused on doing everything possible to ensure a return to our pattern of consistent long-term growth”.

[william67]

Costco could sell manuka honey with their own name like the pams of PAK'nSAVE

[Balance]

Costco could sell manuka honey with their own name like the pams of PAK'nSAVE

They could but they are not.

They are doing a good job helping NZ producers clear stock currently.

[william67]

See's Candies of Warren Buffet tell us what is the power of branding. No Brand, chocolate is a commodity.

[william67]

With price war, the manuka honey industry will go nowhere.

[william67]

Without branding power, the fate of Egmount ,Puriti, whatever names is under the mercy of Costco. Sam's club in China sell Manuka honey with their own name for a period time, turned out it doesn't work, today Sam's club in china only carry Comvita manuka honey.

[mike2020]

Im going to disagree. Comvita priced themselves out of reach for many. The cheaper products were nothing I couldn't get for half the price at a local market. Turnover still matters.

[william67]

Every time when we buy a white bread or one bottle of milk, we have to make a choice from different names. A2 Pams tip top vogel's Molenburg?

[william67]

Nike is not going to target everyone as their potential customers.

[william67]

Comvita’s gross margins remained around 60%.

[bulltrap]

Couple weeks back, one of my neighbours was throwing out a commercial quantity of premium Manuka honey and I helped myself to a carton.

It's a couple of years past its best before date, but I see honey has a shelf life of 3000+ years, as per King Tut's personal stash (https://beemission.com/blogs/news/worlds-oldest-honey). So I too now have an afterlifetime supply for my toast.

Maybe the magic UMF degrades sooner but I don't give a toot about that.

TL;DR: not holding

[Toddy]

DR Google concurs. Honey can last for ever.

[Balance]

Couple weeks back, one of my neighbours was throwing out a commercial quantity of premium Manuka honey and I helped myself to a carton.

It's a couple of years past its best before date, but I see honey has a shelf life of 3000+ years, as per King Tut's personal stash (https://beemission.com/blogs/news/worlds-oldest-honey). So I too now have an afterlifetime supply for my toast.

Maybe the magic UMF degrades sooner but I don't give a toot about that.

TL;DR: not holding

How times have changed. A few years ago, investors were invited to buy drums of manuka honey for storage as ‘prices can only go up.’

[jonu]

Couple weeks back, one of my neighbours was throwing out a commercial quantity of premium Manuka honey and I helped myself to a carton.

It's a couple of years past its best before date, but I see honey has a shelf life of 3000+ years, as per King Tut's personal stash (https://beemission.com/blogs/news/worlds-oldest-honey). So I too now have an afterlifetime supply for my toast.

Maybe the magic UMF degrades sooner but I don't give a toot about that.

TL;DR: not holding

The problem usually comes with moisture levels in the honey. They initially store it at high temp to "grow" the UMF, but past a certain point it degrades. High moisture content can cause fermentation and drums that burst.

[Ricky-bobby]

Beekeepers are struggling everywhere and it’s been like this for the last couple of years. What I liked about comvita was the value add products, they were at a premium but they were the market leader. Now you hardly see their stuff anywhere…

[mike2020]

Beekeepers are struggling everywhere and it’s been like this for the last couple of years. What I liked about comvita was the value add products, they were at a premium but they were the market leader. Now you hardly see their stuff anywhere…

Beecause they went too far past the point of price resistance and the grapes withered on the vine. Supermarkets stopped putting jars on the shelf because people were stealing it rather than pay.

[winner69]

Look at the positive side when Sp came to this low.
David Banfield (Group CEO) said “We remain confident that our business model, premiumisation of the Mānuka honey category and long-term investment in our brand, puts us in a strong position once macro-economic conditions stabilise. We continue to maintain or grow share in our core markets, and we see premium retailers in the US and Middle East turn to Comvita as the only brand committed to growing the category with two new high-quality partnerships confirmed for H2. We remain committed to deliver cost reductions in H2 to protect our earnings and are forecasting a further reduction of debt and inventory in H2 supported by positive operating cash flow.” "The team and I are absolutely focused on doing everything possible to ensure a return to our pattern of consistent long-term growth”.


Dave been using those sort of words for years now and look where it’s getting Comvita

Win prestigious Growth Strategy awards though

[william67]

When Sp dropped to $3.11, in June 2019 Scott Coulter lost his job.
I don't think David have many years to verify his words.
Shareholders can't survive on "words", they live on real money.

[winner69]

When Sp dropped to $3.11, in June 2019 Scott Coulter lost his job.
I don't think David have many years to verify his words.
Shareholders can't survive on "words", they live on real money.

Said last week unless Comvita taken over David won’t be there next year …and even then he mightn’t be there