Comvita - CVT

[ratkin]

[QUOTE=Slam dunk;385800]They sounded positive on the conf call. They said China/Sth Korea/Hong Kong were very strong, although acknowledged Aus/UK were tough. Northern hemisphere winter and holidays such as Chinese new year make for a stronger second half.
They said both their olive leaf product for reducing blood sugar levels, and their cardio-vascular product, have been well received. Apparently Olive Leaf products have previously been seen as just a cold & flu product so this gives them an opportunity to reduce the seasonality of olive leaf sales. CEO also mentioned they were working on a new olive leaf product and a new ingredient platform but wouldn't give any more detail. Because demand is strong they said growing supply will have an immediate impact on bottom line and they're focussing there. Their supply from their latest apiary acquisition is going to come on board shortly (didn't catch the date sorry).

Disc. hold CVT[/QUOT

Yes , they certainly talking the talk , lets hope they can walk the walk

[Slam dunk]

I noticed Comvita UMF Manuka Honey for sale at my local Pak 'n' Save on the weekend. I haven't seen this before. Are Comvita starting to distribute through supermarkets now (or is it just that I haven't done the supermarket shopping with my wife for a very long time)?

[Balance]

I noticed Comvita UMF Manuka Honey for sale at my local Pak 'n' Save on the weekend. I haven't seen this before. Are Comvita starting to distribute through supermarkets now (or is it just that I haven't done the supermarket shopping with my wife for a very long time)?

Been selling at Countdown since forever but not the high UMF. The high UMF you can only get at pharmacy and tourist shops. $60 to $75 a 250g jar of UMF 20+.

[Slam dunk]

Been selling at Countdown since forever but not the high UMF. The high UMF you can only get at pharmacy and tourist shops. $60 to $75 a 250g jar of UMF 20+.

Thanks Balance. This was only the UMF 5+. cheers

[Blendy]

Great news about the acquisition of the Olive Estate. Interesting that 'the purchase price is confidential' ...?

[Slam dunk]

Great news about the acquisition of the Olive Estate. Interesting that 'the purchase price is confidential' ...?

Release about acquisition
Global natural health and beauty products company Comvita, has acquired, through its wholly owned subsidiary company Comvita Australia Pty Limited, the olive estate business of Organic Olives (Aust) Company in Coominya, Queensland, Australia.
Comvita CEO Brett Hewlett said the acquisition will meet increasing demand for Comvita's multiple award-winning, fresh Olive Leaf Extract (OLE).
"The acquisition of additional land for the expansion of the Olive Products Australia business ensures Comvita has supply surety and meets the requirements for increased leaf capacity in a rapidly growing global market."
Situated on the shores of Lake Wivenhoe in South-East Queensland, the 85ha (200 acres) estate has 7000 certified organic olive trees and the land is highly suitable for further planting of specialist olive trees suited to production of organically certified fresh Olive Leaf Extract.
Comvita's fresh Olive Leaf Extract is already renowned as beneficial for immune and cardiovascular support. Most recently a clinical trial by The Liggins Institute at The University of Auckland has shown fresh Olive Leaf Extract prepared by Comvita, improves the way insulin is secreted and improves the activity of insulin in overweight men. Insulin that does not work effectively can lead to diabetes. The results have been submitted by The Liggins Institute for peer review and publication.
"We expect there will be increased interest in Comvita products as a result of the trial. We're also scoping the possibility of building on this science, with additional clinical trials," said Mr. Hewlett.
"The acquisition of this new land site for expansion of fresh OLE production is timely and effectively future-proofs this rapidly growing part of our business. Together with fully developing our existing property, the development of our new purchase will provide the capacity to increase supply over the next five years by approximately 130%." said Mr. Hewlett.
The acquisition was completed last week and the purchase price is confidential.
# Ends #

[Vaygor1]

Thanks SlamDunk & Blendy.

This news surprises me a little bit.

I am keen to see CVT buying up more honey-producing companies/assets where they need security of supply (which has constrained them in the past).
Organic or not, my perception is that olive Leaves are in abundance and I would imagine are quite cheap.

Mind you, there is a lot about the Olive Leaf Extract side of CVT's business that I do not know & sometimes a little knowledge can be dangerous.

Yes, I hold CVT and after digesting their latest annual report I feel comfortable with where they are at and where they are going.

[Blendy]

I had been a retailer of comvita's products for a long time (am no longer in that business) and the olive leaf side of things is very valuable (in my opinion). I think they already own some olive estates in Australia for their production, but i believe it is certain types of leaves that have the therapeutic properties, so I assume this purchase is to further enable supply and possibly help with price competition as it's generally an expensive product. I also assume, but have no information, that they will be able to sell the raw material to other nutritional supplement suppliers.

[Vaygor1]

This just in:

FORECAST: CVT: Demand Fulfilment Challenges Prompt Revised Profit Forecast

Global natural health and beauty products company Comvita is today lowering
its earnings guidance for the year to 31 March 2013 mainly due to industry
wide supply shortages and unexpected increases in prices for key ingredient,
Manuka honey, and more difficult trading environments in the United Kingdom
and Australia.

Comvita now forecasts net profit after tax (NPAT) of approximately $7m for
the year. This compares to our guidance in November 2012 at the half year
result, when we noted we were confident of improving NPAT year-on-year. In
the year to 31 March 2012, NPAT was $8.2m. We expect total sales for Comvita
for the full year to be approximately $100m, up 4% on the prior year.

The accumulated effect of two successive years of poor honey harvest for the
beekeeping industry, due to generally inclement weather, resulted in sharp
increases of up to 50% in the wholesale purchase price for Manuka honey
during 2012. The full extent of the increases in purchase price only became
apparent during the latter part of the year.

Relief, however, is in sight as the honey harvest for the current 2012/2013
summer season is shaping up to be above average. At the same time, we have
increased the capacity of our recently purchased beekeeping operations
throughout the North Island to now produce approximately one third of our own
honey needs, enabling us to better manage costs of this key ingredient.

Trading in Australia and the United Kingdom has been difficult. The general
downturn in the economy and consumer confidence in these markets is resulting
in an increasingly competitive environment for our retail customers. While we
have been successful in pushing through price rises that better reflect the
raw material cost increases, this has resulted in a loss of sales with the
more price-sensitive trade customers.

In contrast, sales in our key Asian markets and in New Zealand have been
strong. Increased prices have been more readily accepted and growth of
Comvita's non-honey product range has been strong. This is consistent with
Comvita's strategic growth initiatives to sell a value-added brand in premium
markets and channels.

While we regret the need to downgrade the earnings outlook for this financial
year, we remain confident that the reasons for the downturn are isolated and
that mitigation measures are already in place. Most importantly, the current
strategy still holds with business on a path of strong earnings growth beyond
this financial year.

Comvita will release its results for the full year to March in late May 2013,
at which point we will provide a detailed update of progress in all our key
markets.

Ends....

[golden city]

it is on my mind..that CVT won't have a another better year., sold out at 3.45..looks a bit too early but.., look back the announcement., i think i had make a good decision