Comvita - CVT

[Valuegrowth]

This is fairly old link.Hope they can take thier businesses to the next level.
https://www.nzherald.co.nz/bay-of-pl...IXDB5PAZFA3MQ/

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...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-websit...782/402408.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-websit...424/404449.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-websit...424/404449.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 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