Interested in yet another possible pending train wreck mate but I can't access the link ? Says permission for referral from sharetrader refused ?
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Interested in yet another possible pending train wreck mate but I can't access the link ? Says permission for referral from sharetrader refused ?
Fully expect that Comvita will come up with a write-off but it's all good as it's 'non-cash'!
Coincidentally, I met up with a Northland beekeeper whose manuka honey inventory has been rendered non-manuka honey grade due to the stringent standard now imposed by MPI.
He is not taking this development lying down and a group of them are in 'discussions with MPI.
Interesting read for those who could be bothered :
https://apinz.org.nz/our-work/standa...ce-regulatory/
Just been in an upmarket supermarket in Shanghai - (relatively) big Comvita display with staff member there for the hussle. Had some big containers of honey 1 for 750 or 2 for 799!
Interestingly, had a big display of Zealong tea that looked very good.
What weight & UMF?
delayed financials .. this is bad auditors must have flagged something as not acceptable?
biggest loss in the companies history?
https://www.nzx.com/announcements/339662
what a disaster and the restructuring is just beginning
Still $35m of goodwill on books
Ok so let me get this straight.....
Inventory which is currently in China will be selling at 0% margin based on current value (and probably -ve if they have to discount it...).
They've writted down the goodwill of the Aus and UK business to $0, thats probably fair as the daigou channel is probably focusing on Australian Manuka - funny how A2 never complain with lower sales in Australia due to 'distruptions'
$25M of goodwill in the China BU.... However, by a rough piece of math they are sitting on enough inventory for at least a year of sales (at 0% margin...) and additional 14M of payables to come with the 51% purchase. Given this, how likely is 25M realistic and is that at risk to an additional write down if they fail to generate strong margins from thin air? The 2018 share of profit from the JV is <$2M
I suspect more pain, its going to take a long time to untie this knot.
Useless fact
Comvita has more inventory than A2 ...but A2 sales are nearly 8 times more than Comvita’s
But he goes on to say external factors conspired against them...doesn't show any "ownership" of fault of any kind on their part.
The shares are underpriced he says !
Quote:
Given the recent history of poor honey harvests, adjusting for the recent changes to the regulatory environment, and under the shadow of a languishing share price that undervalues collectively the Groups non-current assets,
Always a warning sign when the directors are so delusional to think the market is wrong. Remember how Turners thought their shares were worth $3.20 :)
At least with turners they can sell their cars and buy their shares back as stock turn is okay...these guys can't do that as stock turn is less than once a year lol
They've got a lot of work to do to get to their $400m annual sales by 2020 eh, or is that 2021 now or 2031 ?