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william67
05-02-2024, 12:27 PM
Comvita's brand power is weak in North America. Powerful brand like Coca-Cola is not going to lose one big customer.
Comvita is one powerful brand in China, but the purchasing power of the middle class in china is reduced sharply by property value declined and China stock market reached dangerous low.
Another serious impact to retail comes from internet celebrities livestreaming.
CVT share price manifests it is difficut time. The mangement should change mindset, increase competitiveness, spend carefully.
winner69
05-02-2024, 12:31 PM
Comvita's brand power is weak in North America. Powerful brand like Coca-Cola is not going to lose one big customer.
Comvita is one powerful brand in China, but the buy power of the middle class in china is reduced sharply by property value declined and China stock market reached dangerous low.
Another serious impact to retail comes from internet celebrities livestreaming.
CVT share price manifests it is difficut time. The mangement should change mindset, increase competitiveness, spend carefully.
Those super duper flagship show rooms they built should be helping sales …….won a design award they did
william67
05-02-2024, 01:45 PM
Three years passed, they should objectively evaluate the Comvita Wellness Lab. Is it a good idea or just a bleeding cash Lab?
Support at around $1.80.
only just -- close 1.81 today
winner69
21-02-2024, 08:39 AM
Half year loss $3.2m
But no worries …good headline
Challenging interim result, margins and market share robust
Sideshow Bob
21-02-2024, 08:40 AM
https://www.nzx.com/announcements/426525
Comvita Limited (NZX:CVT) today announced its interim results for the half year ending 31st December 2023 (H1 FY24), consistent with the recent update given to the market on 1st February 2024. Comvita also gives more detail on its FY24 forecast and reaffirms its outlook to FY25.
H1 FY24 results were impacted by weaker consumer sentiment in mainland China and, to a lesser degree, in North America, where the results were also affected by the loss of some distribution with one customer. However, Comvita’s market positioning and margins remain strong, as the market leader in five out of six of its key markets, and gross margin at 60%, remains in line with Comvita’s FY25 strategic plan.
While China sales are still below the prior year (as reflected in our recently updated FY24 guidance), there are some signs of near-term improvement, with a solid uplift in Q2 vs Q1 and, pleasingly, this has continued into January. Meanwhile, newly signed distribution agreements in North America in the second half will partially offset the loss of distribution noted above.
Looking forward, management remains focused on delivering the FY25 strategic plan first shared in 2020 once trading begins to normalise. This plan has delivered three and a half years of consistent top and bottom-line growth up until FY23, in line with market guidance. At this point, Comvita expects to see momentum return and when combined with strong market share, positions the company well for growth.
Summary
- H1 FY24 revenue $103M, down 7.8% vs prior corresponding period (PCP)
- H1 FY24 EBITDA (excluding ERP costs) $9.5M, down 32% vs PCP driven by weakness in China and North America, and negative (predominantly non-cash) FX adjustments in December 2023
- Net debt finished at $86M in line with its updated guidance, +$22M vs PCP due to investment in HoneyWorld™, Apiter and elevated inventory levels
- FY24 revenue is forecasted to be $225M to $235M
- FY24 EBITDA (excluding ERP costs) is forecasted to be $30M to $35M
- Outlook 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 at 60%. Market share is stable or growing in key markets
- Impact on FY25 strategic plan: Comvita is focussed on returning to consistent growth once trading conditions normalise. Management remains committed to its FY25 strategic plan to deliver EBITDA of c$50M, subject to the timing of a more stable trading environment
- Dividend: Directors declared a fully imputed interim dividend of 1 cps
H1 FY24 results
Comvita’s revenue was $103M, a reduction of $8.8M 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.
Gross margin was strong at 60.2 %, in-line with the FY25 strategic plan, though reduced by 160 bps vs PCP due to formulation benefits and one-off provision release in the PCP. Direct margin increased +140 bps vs PCP.
Unaudited EBITDA for the period (excluding ERP costs) was $9.5M, 32% down vs PCP due to the decreased revenue. There were $1.2M of predominantly non-cash FX adjustments in December relating to the strengthening of the NZD in the month. Excluding the FX impact above, EBITDA (excluding ERP costs) would have been materially within guidance of 20% down. Note that the non-cash FX impact substantially reversed in January.
NPAT (Net Profit after Tax) for the period was a loss of $3.2M ($0.8M NPAT excluding ERP costs) compared to a profit of $4.2M in the prior period. Net debt at the half year was $85.8M and inventory $143M.
China and North America
Trading was challenging in Comvita’s two focus markets of China and North America. Greater China revenue was $45M, down by $6.9M or 13%, and North America revenue was $13M, down by $7.7M vs PCP or 37%. Mainland China revenue for the half year was $33M, down 19% on PCP. Mainland China revenue slowdown was caused by macro-economic weakness, impacting the premium consumer category across multiple sectors. Mainland China market Q1 FY24 revenue was down 26% vs PCP and Q2 revenue was down 15% vs PCP. However, Q2 FY24 revenue lifted by 76% vs Q1 FY24, an improvement beyond usual seasonality of c50-60% quarter on quarter (QoQ). Mainland China’s improving performance continued in January. Hong Kong SAR showed single-digit growth in the half.
North America revenue for the half year was $13M, down 37% on PCP. North America sales were impacted by the loss of some distribution with one customer, inflationary pressure on discretionary spend and a disproportionately strong first half in the PCP. Comvita is seeing an improvement in sales in the Natural and Grocery channel and has recently signed agreements in this market with approximately 700 new stores. E-commerce sales improved by 8% in North America with Amazon revenue improved by 162%.
Rest Of Asia – HoneyWorld™ integration on plan
The Rest of Asia segment showed good performance with revenue improving by 49% or $6.3M to $19.2M and is expected to overtake the ANZ segment at the revenue level. The strategic acquisition of HoneyWorld™ in July 2023 has been seamlessly integrated into the region. Revenue is in line with the plan with agreed new distribution representing strong growth opportunities in H2. Korea delivered 13% topline growth. Segment net contribution was down $700K vs PCP due to integration costs of c$200K and continued planned investment for long-term growth and premiumisation.
Australia and New Zealand (ANZ)
ANZ revenue improved by $1.2M or 7% to $19.3M in the period with strong performance in the Australia domestic market and recovery in the Asian Health segment, in line with recovering demand seen in Mainland China. Comvita remains the market leader in this segment and has recently launched its flagship store at Auckland Airport applying learnings from its destination store in the city, results are looking positive at this early stage and are supported by increased tourism numbers.
Net debt, inventory, and operating cashflow
Net debt finished the half at $85.8M an increase of $22M vs the PCP. The increase is primarily due to strategic investments in HoneyWorld™ and Apiter (together $9.8M) and investment in inventory.
Inventory finished the year at $143M showing a slight improvement to PCP. Comvita is forecasting a reduction in both inventory and net debt by the end of the financial year in line with last year’s performance.
Full year guidance
As announced on 1st February, Comvita expects FY24 reported EBITDA (excluding ERP costs) of $30M to $35M and revenue of $225M to $235M.
Comvita has reviewed independent market data showing forecast consumer spending strengthening in 2024. Comvita expects a steady improvement in consumption through the second half. More detail on Comvita’s FY24 guidance can be found in the investor presentation, also released today, including both a revenue and EBITDA bridge from H1 to H2. In particular, Comvita has identified $8M of specific cost savings to be made in H2 FY24.
Management is actively managing costs, launching new products, and opening new markets and channels to ensure that they can adjust and respond to market opportunities. These include regional NPD in China and new distribution in the Middle East and the UK.
Honey harvest
Whilst too early to confirm the results of this year’s honey harvest, Comvita has experienced strong performance to date, with early indications of significantly enhanced quality of yield delivered in its forests. Due to a change in accounting treatment, Comvita is not forecasting any contribution to group profits from its Apiary division during FY24, but this will benefit FY25 and FY26 due to lower average cost of sales as a result of this change.
Market share remains strong
While consumer sentiment weakened, Comvita’s market positioning and margins have remained strong. Market share grew in key markets during the period, pricing remained consistent and the gross margins that are integral to the delivery of its 2025 strategic 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 trend once consumer sentiment, particularly in China, starts to normalise. Comvita has reviewed its FY25 strategic plan in detail and reiterates its c$50M EBITDA target. This is dependent on a return to normal trading conditions in both China and North America, the timing of which is uncertain.
Commenting on the results Chair Brett Hewlett said, “Comvita has shown agility and resolve in making appropriate adjustments in the current challenging market conditions in China. We have thoroughly reviewed our costs and planned investments and have reduced these appropriately. In addition, the investment we have already made for the long-term in securing a scalable supply of high-quality raw materials as well as world class manufacturing, distribution and now operating systems to match, have created a strong platform for future growth. Alongside the substantial investments in the Comvita brand we believe that we are well placed.”
On a more personal note, as a long-standing shareholder of more than 18 years, I can empathise with the feelings of surprise and frustration in the current share price shared with me by many of our fellow shareholders. I do want to reiterate that our market share and underlying performance remains positive, our prices and margin are stable and I believe that we are still on track to deliver our FY25 strategic plan once consumer confidence in China returns.”
“Directors have declared a fully imputed interim dividend of 1 cps to reflect the softer first half trading. Comvita remains committed to balancing shareholder distributions with prudent capital management. The board will review our full year dividend in August as normal in line with our actual performance and FY25 outlook.”
Platform for growth supports exciting future
The Comvita FY25 strategic plan was designed to deliver record revenue and profit in FY25 but, as importantly, to systematically build a platform across its whole value chain that is integrated, efficient and scalable. By the end of FY24 this investment phase will have been fully implemented. Comvita has established a platform that is able to deliver Comvita’s FY30 ambition, without further material additional capital investment.
Long-term investment in brand building and premiumisation continues
The Comvita business model is designed for high margin and high re-investment in its brand. During H1 FY24 Comvita invested $14M or 13.5% of sales into brand building activity. Central to this investment is further premiumisation of the Comvita brand both online and in physical stores. Comvita was particularly pleased to launch its new experiential shop-in-shop at Auckland Airport along with its new retail execution in Takashimaya, Singapore, and its pop-up store in Roppongi, Japan.
Comvita Lepteridine™ clinical trial results
Comvita invests more in scientific understanding of Mānuka than the rest of the industry combined and as part of this work discovered the unique molecule Lepteridine™. Comvita commenced a clinical trial on the impact of Lepteridine™ on gut health in July 2023. These results are in final stages of preparation and will be shared at the Foodomics conference on 19 - 21 March in Wellington. Comvita has strong patents for Lepteridine™ in place to enable long-term competitive advantage.
New Apiculture Industry strategy
Comvita is pleased to actively support the new Apiculture Industry strategy launched by the Government on the 20th February 2024 aiming to double Mānuka exports by 2030 focusing on enhanced quality, sustainability, bee welfare and recognition of Mānuka as a taonga species from Aotearoa, New Zealand.
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 turning to Comvita to help them build the Mānuka honey category with three new high-quality partnerships confirmed for H2. We remain committed to delivering 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. While our debt and inventory levels are higher at present, we reiterate our commitment to deliver our target leverage ratio (1-1.5 x earnings), in line with our FY25 strategic plan.”
“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 track record of delivering consistent top and bottom-line growth. We are in year four of our five-year plan and have invested significantly over the last three years in our infrastructure and team capability to build a better more scalable business at Comvita that is able to deliver on our 2030 ambition.”
Brett Hewlett
Chair
winner69
21-02-2024, 08:48 AM
Going to be huge 2nd half of financial year
kiwikeith
21-02-2024, 09:10 AM
"Investment in inventory". What a wonderful expression!
Sideshow Bob
21-02-2024, 09:11 AM
"Investment in inventory". What a wonderful expression!
Because that always works well!! :sleep:
winner69
21-02-2024, 09:15 AM
"Investment in inventory". What a wonderful expression!
Suppose the planned reduction in inventory becomes a ‘divestment of inventory’
bull....
21-02-2024, 09:24 AM
I like the first page of the presentation .... POISED FOR TAKEOFF ..... lol in what year are we talking about cause the result was terrible and there going back to those bad days off to much debt and inventory again :scared:
Sideshow Bob
21-02-2024, 09:27 AM
I like the first page of the presentation .... POISED FOR TAKEOFF ..... lol in what year are we talking about cause the result was terrible and there going back to those bad days off to much debt and inventory again :scared:
Do they just recycle these announcements, inserting the current year and figures??
Seems like it......!!
Recaster
21-02-2024, 09:45 AM
Bad result. Suspicious of any company that makes EBITDA the P&L focus in its announcements.
winner69
21-02-2024, 10:03 AM
Bad result. Suspicious of any company that makes EBITDA the P&L focus in its announcements.
..even more so when Comvita use a few different versions of EBITDA
winner69
21-02-2024, 12:13 PM
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
That post a year ago
Nothing changed over last year ….burning cash but still paying dividends …and hoping
Updated chart below
kiora
21-02-2024, 01:12 PM
"Investment in inventory". What a wonderful expression!
Great honey season this year
Typically 1/5 years???
Valuegrowth
21-02-2024, 02:13 PM
Volume is low. Despite poor earnings stock prices are up? May be punters are reacting to
the future. Is the future bright?
Despite poor earnings stock prices are up? May be punters are reacting to
the future. Is the future bright?
Another 1c dividend 6 months or so further down the track ? ;)
Money in da bank might yield better .. and that's after the Taxmans slice gets peeled off first
william67
22-02-2024, 11:36 AM
There is nothing wrong with this "Investment in inventory"
Turn "raw materials " to "finished goods" need capital input
The "raw materials " inventory reduced $20.1m. "finished goods" increased $17.2m, they are ready to sell.
william67
22-02-2024, 12:31 PM
"Honey harvest
Whilst too early to confirm the results of this year’s honey harvest, Comvita has experienced strong performance to date, with early indications of significantly enhanced quality of yield delivered in its forests. Due to a change in accounting treatment, Comvita is not forecasting any contribution to group profits from its Apiary division during FY24, but this will benefit FY25 and FY26 due to lower average cost of sales as a result of this change."
https://www.nzx.com/announcements/426525
"Honey harvest
Whilst too early to confirm the results of this year’s honey harvest, Comvita has experienced strong performance to date, with early indications of significantly enhanced quality of yield delivered in its forests. Due to a change in accounting treatment, Comvita is not forecasting any contribution to group profits from its Apiary division during FY24, but this will benefit FY25 and FY26 due to lower average cost of sales as a result of this change."
https://www.nzx.com/announcements/426525
It would be surprising if any sort of current yield did not surpass the year before of wetness, cyclones etc ;)
it was a bit of a wash out the previous period
william67
22-02-2024, 02:08 PM
Have some faith. They could get very well information from their 7.5k hectares manuka trees.
Have some faith. They could get very well information from their 7.5k hectares manuka trees.
Not many Bees around here .. CVT must be attracting them all onto their acreage on healthy OT rates with performance sweeteners ;)
Sideshow Bob
22-02-2024, 03:48 PM
Is this a play out of the Rakon book to get the SP up??
https://www.nzx.com/announcements/426680
Comvita Limited NZX:CVT today advises that a credible offshore party has approached Comvita with a highly conditional unsolicited, indicative, non-binding proposal to acquire all of its shares (“NBIO”). The indicated offer price represents a significant premium to the current share price. The party indicated it would prefer to implement any acquisition by a negotiated scheme of arrangement.
The Board of Comvita has retained Goldman Sachs New Zealand Limited as financial adviser and Simpson Grierson and Chapman Tripp as external legal counsel, to assist with Comvita’s consideration of the proposal.
Comvita has concluded an initial exchange of information with the party, following which the party confirmed its interest in undertaking further confirmatory due diligence.
The Board has decided to provide further access to confirmatory due diligence information with a view to determining whether the NBIO may evolve into a formal proposal that might be in the best interests of all shareholders.
There is no certainty that the NBIO will result in any negotiated transaction for shareholders to then vote on. Comvita shareholders do not need to take any action at this time in relation to the NBIO. The Comvita Board will continue to keep shareholders and the market informed of any material developments in accordance with its continuous disclosure obligations.
Bridget Coates
Chair of the Comvita Board sub-committee responding to the NBIO
winner69
22-02-2024, 03:57 PM
Dave with a big smile telling himself ‘ it’s taken a while but I’ve finally found a buyer’
I get feeling Comvita Board is quite keen to sell so might not do the Rakon, Arvida trick
Action coming up I reckon
No mention of price
JSwan
22-02-2024, 04:02 PM
Any guesses on price?
winner69
22-02-2024, 04:21 PM
Any guesses on price?
Might get away with $2.50 / $3.00 but $4 sounds good
Chinese interests might have a say
Interesting
kiwikeith
22-02-2024, 04:50 PM
Just learnt the hard way not to leave an order open. I tried to sell some shares for $1.95 a few weeks ago and left it there as the shares went down to the 1.80s. This possible bid news came out and I was bought out at $2.01. I have some other cvt shares with sharesies which I will leave to see how this possible bid develops.
percy
22-02-2024, 05:46 PM
W69.
Perhaps "our David" should become FBU's next CEO.?
winner69
22-02-2024, 06:13 PM
W69.
Perhaps "our David" should become FBU's next CEO.?
If this goes through it’ll be 2 in a row eh …Methven and possibly Comvita
Seems good at making companies attractive for sale
william67
22-02-2024, 06:17 PM
Beekeepers' forum
https://nzbees.net/threads/honey-crop-so-far.1103/
DNA shows NZ manuka unique
https://waateanews.com/2024/01/30/dna-shows-nz-manuka-unique/
Valuegrowth
22-02-2024, 07:10 PM
Beekeepers' forum
https://nzbees.net/threads/honey-crop-so-far.1103/
DNA shows NZ manuka unique
https://waateanews.com/2024/01/30/dna-shows-nz-manuka-unique/
Dear W67
Thank you for the above links.
ralph
22-02-2024, 08:29 PM
Any guesses on price?
I would say 3.50-4$ .
We shall see ,The chinese will have a say & probably are the offshore bidders
W69.
Perhaps "our David" should become FBU's next CEO.?
MPG for further practice with some interested parties outside the door might be another :)
I would say 3.50-4$ .
We shall see ,The chinese will have a say & probably are the offshore bidders
they be buyers or sellers ? :)_
Toddy
22-02-2024, 09:28 PM
I would say 3.50-4$ .
We shall see ,The chinese will have a say & probably are the offshore bidders
Sounds like a Jarden valuation that one. Track record of scaring any bidders away with extreme valuations.
Sounds like a Jarden valuation that one. Track record of scaring any bidders away with extreme valuations.
Hey come on now .. have others already been in the pots and barrels already & discovered most of the mislabeled ones are instead full of the really good stuff ? ;)
Filthy
23-02-2024, 10:22 AM
https://www.nbr.co.nz/investment/comvita-receives-takeover-bid/
edit - missed it yesterday
william67
23-02-2024, 11:59 AM
Indicative price?
$50m Cpital/equity raised at $2.5 in june 2020. milford asset management cost
$3.25 is the leadership holding cost and the net asset per share.
at $4.3 , $300m is equal the total consideration received by the sale of Manuka Health business. also is Li SUN and Li WANG's cost to get a piece of CVT ownership. (Li WANG 's average cost much higher $6.5+)
c$50m EBITDA FY2025 and beyond- FY2030. net profit $20m+ The valuation from $400m, Sp at $6+
The serious indicative price must be $4.5+, otherwise don't make sense.
Habits
23-02-2024, 12:07 PM
If they can't buy comvita there is always MFB
ralph
23-02-2024, 01:13 PM
Indicative price?
$50m Cpital/equity raised at $2.5 in june 2020. milford asset management cost
$3.25 is the leadership holding cost and the net asset per share.
at $4.3 , $300m is equal the total consideration received by the sale of Manuka Health business. also is Li SUN and Li WANG's cost to get a piece of CVT ownership. (Li WANG 's average cost much higher $6.5+)
c$50m EBITDA FY2025 and beyond- FY2030. net profit $20m+ The valuation from $400m, Sp at $6+
The serious indicative price must be $4.5+, otherwise don't make sense.
Good assessment William ,it will certainly be getting up there
Valuegrowth
23-02-2024, 02:03 PM
Today the top gainer. Over last 2 days have beaten nvidia. Kind of an acquisition play.
Indicative price?
$50m Cpital/equity raised at $2.5 in june 2020. milford asset management cost
$3.25 is the leadership holding cost and the net asset per share.
at $4.3 , $300m is equal the total consideration received by the sale of Manuka Health business. also is Li SUN and Li WANG's cost to get a piece of CVT ownership. (Li WANG 's average cost much higher $6.5+)
c$50m EBITDA FY2025 and beyond- FY2030. net profit $20m+ The valuation from $400m, Sp at $6+
The serious indicative price must be $4.5+, otherwise don't make sense.
Come on now - serious indicative price must mean taking out the rest at as close to $2.50 as possible :)
Valuegrowth
23-02-2024, 02:21 PM
If they offer above price better sell Nivida and park money in CVT.
If they offer above price better sell Nivida and park money in CVT.
So this one could just be the Bee's Knees after all ?:)
Getty
23-02-2024, 02:44 PM
Foreign control of our pollination could be beestly
Valuegrowth
23-02-2024, 03:44 PM
I agree. There was a good company waste management. I had a interest on it. Sadly, it got delisted. Boring is beautiful.
Sideshow Bob
29-02-2024, 12:01 PM
No further updates....?? Share price easing back slightly.
Ha: "Comvita wins best growth strategy award"
https://www.nzherald.co.nz/business/deloitte-top-200-comvita-wins-best-growth-strategy-award/HDOQ7PK3LBGBFHZ2VBLSJJQRU4/
Toddy
01-03-2024, 10:06 PM
Never knew that they were New Zealands second biggest employer in China.
Makes Zespri look efficient if they have less staff in China than Comvita
Valuegrowth
02-03-2024, 05:01 PM
If I'm right New Zealand is the 2nd largest honey exporter in the world after China.
Jenny Ruth
19-03-2024, 10:14 AM
Hi all. My latest column published on my Substack, Just the Business, takes a look at what's been happening at honey company Comvita. The headline is: Trying to explain away Comvita's bad news
And you can find it here:
https://substack.com/@justthebusinessjennyruth
winner69
19-03-2024, 10:19 AM
Hi all. My latest column published on my Substack, Just the Business, takes a look at what's been happening at honey company Comvita. The headline is: Trying to explain away Comvita's bad news
And you can find it here:
https://substack.com/@justthebusinessjennyruth
You mention ‘explain away’ ….. good term
This bit if sage advice applies to Comvita I reckon -
“in the absence of a track record of accomplishment, you should take a CEO’s plans as hopeful intent. That doesn’t mean they are lying, just that we really don’t necessarily know what they can or cannot do. There is a particular danger if they use language that resonates with you. More than once in my investment career did I fall for someone who said all the right things, except that they hadn’t done them — in the past, or as it turned out, in the future.”
Balance
19-03-2024, 10:20 AM
You mention ‘explain away’ ….. good term
This bit if sage advice applies to Comvita I reckon -
“in the absence of a track record of accomplishment, you should take a CEO’s plans as hopeful intent. That doesn’t mean they are lying, just that we really don’t necessarily know what they can or cannot do. There is a particular danger if they use language that resonates with you. More than once in my investment career did I fall for someone who said all the right things, except that they hadn’t done them — in the past, or as it turned out, in the future.”
Sounds like the Labour government of Ardern, Hipkins and the Maori Cabal with the woke leftists tuning in on every utterances from the one source of truth?
Comvita of course actually has an excellent brand (best in the manuka honey industry) and is still a profitable outfit. If it gets taken over, there goes another great NZ brand and I am pretty sure the offshore buyer will know how to make the best of the brand.
In any case, David Banfield's implicit strategy of courting a takeover is now in progress?
winner69
19-03-2024, 10:32 AM
Sounds like the Labour government of Ardern, Hipkins and the Maori Cabal with the woke leftists tuning in on every utterances from the one source of truth?
Comvita of course actually has an excellent brand (best in the manuka honey industry) and is still a profitable outfit. If it gets taken over, there goes another great NZ brand and I am pretty sure the offshore buyer will know how to make the best of the brand.
In any case, David Banfield's implicit strategy of courting a takeover is now in progress?
Dave has worked hard to find a buyer …..hope it works out for him.
Sideshow Bob
23-04-2024, 03:56 PM
The supplementation of mānuka honey has been shown to reduce symptoms of functional dyspepsia, New Zealand-based mānuka honey maker Comvita announced....
https://www.nutraingredients-asia.com/Article/2024/04/22/manuka-honey-helps-reduce-functional-dyspepsia-symptoms
Valuegrowth
10-05-2024, 08:02 PM
CVT traded around $3.40 back then somewhere in August 2023. Today It has dropped to $1.71. What a drop? Any major reason?
Sideshow Bob
20-05-2024, 08:50 AM
https://www.nzx.com/announcements/431303
Comvita Limited (NZX:CVT) is today updating its FY24 guidance, reflecting weaker conditions in Q4 FY24, despite improved performance during Q3.
The company now expects lower revenue and adjusted EBITDA* for FY24. The key driver for this change to guidance is the prolonged weakness of consumer demand in the China market, exacerbated by the partial cancellation of the 6:18 Festival, China’s second-largest retail festival.
Given the prolonged weakness, the company has also reviewed its FY25 plan.
Summary:
• Quarterly sequential improvements for the first three quarters. Q3 revenue was flat vs PCP
• Q4 is now forecast to be impacted by the continuation of weaker consumer demand and underperformance of the 6:18 festival in China, which has affected many premium categories
• FY24 revenue and adjusted EBITDA* is now expected to be lower (see table below)
• $50M EBITDA* target within the FY25 strategic plan, is now considered to be unachievable in FY25
• Gross margin remains strong. FY24 gross margin is expected to be c60%
• Net debt and inventory as at 30 June 2024 are still expected to be below December 2023 levels, as indicated in February 2024
Updated FY24 guidance
Expected FY24 Revenue: $211M - $218M (previously $225M - $235M in February 2024)Expected FY24 adjusted EBITDA*: $23M - $28M (previously $30M - $35M in February 2024)
Group revenue through the first three quarters of the year had seen improvement, as shown in the table below.
Guidance in February was based on the partial recovery of Chinese consumer demand in Q3, but this has not continued into Q4.Group revenue progression(vs prior corresponding period):Q1 (Jul-Sep 23): -8.8% vs PCPQ2 (Oct-Dec 23): -6.9% vs PCPQ3 (Jan-Mar 24): +1.5% vs PCPSeasonally, Q4 (Apr-Jun) is typically the highest or second highest quarter for revenue and profit contribution with heightened demand normally generated by the 6:18 Festival, a major annual trading opportunity for the company. But this year Comvita now anticipates performance to be considerably below what the February guidance contemplated. H2 FY24 revenue is now expected to be $110M (mid-point of above range), down 9.7% vs H2 FY23.
The weakness shown in April’s result is primarily due to the cancelation of pre-sales for the 6:18 event in China and this has now been forecast to continue for the quarter.
Market demand in Mainland China is responsible for c60% of the change to guidance, while the flow on impact of the decline in China into Australia and New Zealand, Rest of Asia and EMEA accounts for the additional c40%. Meanwhile, North America continues to trade in line with February guidance.While consumer sentiment remains weakened, Comvita’s market positioning has remained strong and Comvita continues its premium product strategy, maintaining margins at c60%. The company remains on track with its FY24 cost out programme of around $8M.
Update on other markets
• America – Continues to broadly trade in line with February guidance
• ANZ – Impacted by Daigou cross border sales into the China market• Middle East – Shipments for new listings delayed into FY25
• Rest of Asia – Impacted by stalled growth in Korean marketFY25 strategic planIn 2020 Comvita launched its FY25 strategic plan.
Over the first three years, Comvita was successfully tracking to its FY25 strategic plan, including its EBITDA* target of $50M for FY25. However, FY24 has seen a significant change in economic conditions and consumer sentiment globally.Based on latest assessments in its key markets, in particular the market in China, the underlying economic assumptions for the FY25 plan now appear very unlikely to be realised.
Accordingly, Comvita now consider the EBITDA* target unlikely to be achieved in FY25.In response to the significant change in consumer sentiment globally, a cost-out programme for FY25 has been initiated, over-and-above the FY24 programme, and is targeted to deliver incremental savings of $10M (COGS and Opex).Comvita will provide the market with an update on its outlook for FY25 when the company reports its FY24 results in August.In terms of the strategic plan, the company remains committed to meeting its targets with respect to pricing and gross margins, indicating strong potential once market conditions normalise, although timing of this normalisation is not yet clear.
Management commentary
CEO David Banfield said that although the company was maintaining its margins and market share, it is taking further action in response to weaker market conditions to remain agile in the face of challenging operating realities.“It’s really disappointing to provide a further update to guidance, given the progress we have made on our strategic plan to grow value and lift performance since 2020. We have created a platform for growth over the last four years that will enable us to thrive once conditions improve.” He said, “The realities of what now is a more sustained slowdown in our key markets, including a significant drop off in China in Q4, make it necessary to further reduce costs to reflect these tougher conditions.
”Chairman Brett Hewlett said: “The underlying value of Comvita's assets, its high quality products and services, its scaled sustainable supply capability, premium brand positioning, international business operations and networks offer significant growth opportunities over the medium to long term. However, notwithstanding the team's hard work to grow margin and market share, the decline in broader market demand is something we must adjust for in the short-term, whilst ensuring we remain well-positioned and apply flexibility in our responses to market conditions as they evolve."
Sideshow Bob
20-05-2024, 08:52 AM
https://www.nzx.com/announcements/431304
On 22 February 2024, Comvita Limited (NZX:CVT) advised it had received a highly-conditional unsolicited non-binding indicative offer (NBIO) from a credible offshore party to acquire all of its shares. The indicative offer price represented a significant premium to the prevailing share price.Comvita has provided the interested party with confidential access to the company and its information in order to undertake due diligence. A sub-committee of the Board was established to oversee this process, with advice from financial advisors Goldman Sachs, as well as legal advisors Chapman Tripp and Simpson Grierson.Throughout this process, the Comvita Board of Directors have maintained a tight focus on maximising value for shareholders, to enable the potential acquirer to appraise both the near term and longer term outlook for the company in its global markets.Comvita remains subject to confidentiality restrictions in respect of the NBIO and its engagement with the offshore party but will inform shareholders of material developments and any other matters, in accordance with its continuous disclosure obligations.The Board advises shareholders that there is no certainty that any transaction will eventuate from the NBIO process. As such, no action is required from shareholders at this time.
winner69
20-05-2024, 09:10 AM
Dave’s Raves getting depressing …even Dave can’t paint a bright future
Dave hoping like hell that the takeover succeeds so he can get out of there…..quickly
Not much NPAT this year for Comvita ….remember 1st half was a loss
Balance
20-05-2024, 09:20 AM
https://www.nzx.com/announcements/431304
On 22 February 2024, Comvita Limited (NZX:CVT) advised it had received a highly-conditional unsolicited non-binding indicative offer (NBIO) from a credible offshore party to acquire all of its shares. The indicative offer price represented a significant premium to the prevailing share price.Comvita has provided the interested party with confidential access to the company and its information in order to undertake due diligence. A sub-committee of the Board was established to oversee this process, with advice from financial advisors Goldman Sachs, as well as legal advisors Chapman Tripp and Simpson Grierson.Throughout this process, the Comvita Board of Directors have maintained a tight focus on maximising value for shareholders, to enable the potential acquirer to appraise both the near term and longer term outlook for the company in its global markets.Comvita remains subject to confidentiality restrictions in respect of the NBIO and its engagement with the offshore party but will inform shareholders of material developments and any other matters, in accordance with its continuous disclosure obligations.The Board advises shareholders that there is no certainty that any transaction will eventuate from the NBIO process. As such, no action is required from shareholders at this time.
20%+ profit downgrade.
Looks to me like the potential bidder will be revising down the takeover price if it proceeds.
winner69
20-05-2024, 09:24 AM
https://www.nzx.com/announcements/431304
On 22 February 2024, Comvita Limited (NZX:CVT) advised it had received a highly-conditional unsolicited non-binding indicative offer (NBIO) from a credible offshore party to acquire all of its shares. The indicative offer price represented a significant premium to the prevailing share price.Comvita has provided the interested party with confidential access to the company and its information in order to undertake due diligence. A sub-committee of the Board was established to oversee this process, with advice from financial advisors Goldman Sachs, as well as legal advisors Chapman Tripp and Simpson Grierson.Throughout this process, the Comvita Board of Directors have maintained a tight focus on maximising value for shareholders, to enable the potential acquirer to appraise both the near term and longer term outlook for the company in its global markets.Comvita remains subject to confidentiality restrictions in respect of the NBIO and its engagement with the offshore party but will inform shareholders of material developments and any other matters, in accordance with its continuous disclosure obligations.The Board advises shareholders that there is no certainty that any transaction will eventuate from the NBIO process. As such, no action is required from shareholders at this time.
Share price back to where it was pre the NBIO announcement ……and about a half of what is was a year ago
Might be worth a punt .,,,,,big profit on takeover ….and if that doesn’t work a rerate as things get better
Bit of a mess having a profit downgrade when due diligence is being undertaken
winner69
20-05-2024, 09:39 AM
20%+ profit downgrade.
Looks to me like the potential bidder will be revising down the takeover price if it proceeds.
V expected 2nd half ebitda its 28% to 35% downgrade
Downgrade #2 this financial year (I think)
Forecasting / feel for the market not one of Comvita’s strong points
Toddy
20-05-2024, 10:24 AM
This result is an absolute shocker. The sp would be well south of 1.70 without the offer hanging around.
I can still see an offer being made, but at what price. It's probably nothing to do with valutions, but more to do with a comfortable exit price that current shareholders would accept.
Filthy
20-05-2024, 10:46 AM
This result is an absolute shocker. The sp would be well south of 1.70 without the offer hanging around.
& the offer might not even come through....
plus 1 more downgrade still to come! (some say 'they come in 3s')
Balance
30-05-2024, 09:56 AM
Potential acquirer walks away ......
https://www.nzx.com/announcements/432051
kiwikeith
30-05-2024, 10:42 AM
Potential acquirer walks away ......
https://www.nzx.com/announcements/432051
Goldmine Sacks earned some easy money there. They would have done a load of work calculating what a fair offer would be - and it turned out to be an academic exercise because it sounds like no offer eventuated.
winner69
31-05-2024, 01:54 PM
Jeez CVT share price down on low 140's
Dave must be really peeved takeover he worked so hard on getting won't be going ahead.
Left with a dog of a performer...I reckon he will pack sad soon and move on ...or he might even get the heave ho
Balance
31-05-2024, 01:59 PM
Potential acquirer walking away after CVT did an open kimono is bad bad news indeed - no other way to describe the situation.
Either the potential acquirer was never really that serious (if serious they would have made a bid, low it may be) or their due diligence uncovered enough negatives to make them run away.
The directors are at best naive or at worse, plain dumb to have done the open kimono.
kiwikeith
31-05-2024, 02:57 PM
Potential acquirer walking away after CVT did an open kimono is bad bad news indeed - no other way to describe the situation.
Either the potential acquirer was never really that serious (if serious they would have made a bid, low it may be) or their due diligence uncovered enough negatives to make them run away.
The directors are at best naive or at worse, plain dumb to have done the open kimono.
If you want to be acquired, you have to open the kimono at some point. Every acquiring company will want to do due diligence. But I agree it is probably bad news as they probably found stuff they did not like.
kiwikeith
27-06-2024, 07:26 PM
The CEO bought 18,000 shares at $1.08 per share. Not a big amount relative to his holding. It is starting to get interesting at these price levels but I will wait for some positive news before jumping in.
Valuegrowth
27-06-2024, 08:07 PM
The CEO bought 18,000 shares at $1.08 per share. Not a big amount relative to his holding. It is starting to get interesting at these price levels but I will wait for some positive news before jumping in. What a drop? It has dropped all the way from $3.00 to around$1.00 within the short period. I can't believe it. This is the main reason for me to sell stocks when I see danger signals which I didn’t do in the past. The only type of stocks that I don’t want to sell are strong balance sheet firms with strong cash flow.
ralph
27-06-2024, 08:13 PM
The CEO bought 18,000 shares at $1.08 per share. Not a big amount relative to his holding. It is starting to get interesting at these price levels but I will wait for some positive news before jumping in.
Huge volumes went through today Keith
Valuegrowth
27-06-2024, 08:21 PM
Huge volumes went through today Keith Yes.Much more than average volume.
kiwikeith
27-06-2024, 08:47 PM
Huge volumes went through today Keith
Yes one big trade of 400,000 shares which was most of the 563,000 traded today. We may find out next week who it was.
ralph
27-06-2024, 08:59 PM
Yes Keith I think we will Interesting !!!
kiora
27-06-2024, 10:07 PM
More restructuring in the industry is still happening
Number of registered beehives in NZ peaked at 918,000 in 2019
Now down to 583,000 with a corresponding drop in staff.
Meanwhile the cost to maintain a hive over the year has esculated substantially
(up around 50% over 3 years)
The high value honey crop shouldn't drop as much in proportion because hives will remain in the better areas ,East Coast & Northland where its hotter & drier in the summer
The over hang of honey will dissipate but it will take some time.
Maybe its time to stock up on honey
ralph
29-06-2024, 12:54 PM
Yes Kiora that was the big growth spurt 2009 to 2019 when it looked like easy money to all the agricultural entrepreneur's.
And was for a while but a lot wanted the quick & Big buck & moved on as they do in most sectors, certainly has evolved a lot since value was apparent .
Quite a wee gold rush back in the day
Toddy
29-06-2024, 03:26 PM
Its not all bad news, Manuka makes great firewood.
And for a number of years the bee keepers charged the kiwifruit growers ridiculous prices for the bees as the kiwifruit flowered when the bees were on the Manuka.
kiwikeith
29-06-2024, 09:14 PM
Its not all bad news, Manuka makes great firewood.
And for a number of years the bee keepers charged the kiwifruit growers ridiculous prices for the bees as the kiwifruit flowered when the bees were on the Manuka.
Yeah Manuka is really hot as a firewood. I remember as a child we used to burn manuka and it not only got the house superhot but it burnt through the grates in no time at all.
winner69
29-07-2024, 09:19 AM
Things even worse than they said two months ago
And going to clear out the rubbish on the balance sheet with big writedowns by look of it
https://www.nzx.com/announcements/435174
kiora
29-07-2024, 09:22 AM
The business model is not fit for purpose?
The business needs remodelling?
flyinglizard
29-07-2024, 12:15 PM
The business model is not fit for purpose?
The business needs remodelling?
pretty much the boards cannot turn around. The SP heading south to $0.50-$0.60 range soon. I am just a bit shocked today's figure does not bring a 20%+ slump.
Sideshow Bob
29-07-2024, 12:28 PM
pretty much the boards cannot turn around. The SP heading south to $0.50-$0.60 range soon. I am just a bit shocked today's figure does not bring a 20%+ slump.
Down about 10% today, but a mere 67% in the last year.
Market perhaps seeing what that party that made the unsolicited offer a few months back saw....??
flyinglizard
29-07-2024, 12:32 PM
Down about 10% today, but a mere 67% in the last year.
Market perhaps seeing what that party that made the unsolicited offer a few months back saw....??
I guess so. But China economy is hard to turn around this time, if CVT cannot adopt new business model even with a new buyer, the ship is sinking !!!!
whatsup
29-07-2024, 01:09 PM
Its not all bad news, Manuka makes great firewood.
And for a number of years the bee keepers charged the kiwifruit growers ridiculous prices for the bees as the kiwifruit flowered when the bees were on the Manuka.
Circa, $150/hive as a favour as the pollen does not make honey apparently !
kiora
29-07-2024, 01:17 PM
Circa, $150/hive as a favour as the pollen does not make honey apparently !
& it costs $550-$600/hive/year to maintain it?
Mackap
29-07-2024, 01:32 PM
Current prices beekeepers charge for pollination are between $220 to $280 for uncovered orchards. $320 to $400 for covered orchards. Prices vary depending on location. Beekeepers charge more for covered orchards as the health of the hives is negatively impacted during time under cover.
Mackap
29-07-2024, 01:34 PM
I see Egmont honey has online sales discounting 60% off high grade Manuka. Egmont honey is owned by Nestle but they were selling it off, from what I heard.
whatsup
29-07-2024, 01:41 PM
& it costs $550-$600/hive/year to maintain it?
Hire is for 2-3 weeks during pollination only !
Toddy
29-07-2024, 02:03 PM
Current prices beekeepers charge for pollination are between $220 to $280 for uncovered orchards. $320 to $400 for covered orchards. Prices vary depending on location. Beekeepers charge more for covered orchards as the health of the hives is negatively impacted during time under cover.
The hives get moved around the orchards. I. E the income is per hive should be multiplied.
The orchards on the flats can flower two weeks apart. So the same hives normally do 2 gold orchards. Then you also have Red which is before Gold, and green that is after.
The green orchards are the most demanding on the bees as they have to pollinate the same flower approx 40 times. As opposed to gold, twice.
So bank on the same hives being used min twice, often 3 or even 4 times depending on how strong the hive is.
The bees are not put on kiwifruit for honey, just pure $$ in the bank 7 days later.
kiora
29-07-2024, 02:26 PM
Hire is for 2-3 weeks during pollination only !
Yes that's the hire rate.
The cost to look after/maintain a hive for a year is ???
Toddy
29-07-2024, 02:35 PM
Yes that's the hire rate.
The cost to look after/maintain a hive for a year is ???
I have the hives on my property Gold kiwifruit for approx 7 days each year. Then they go to the next job.
Been in the Industry for 20 years.
After they have done several orchards they go back onto clover or the likes to rest.
Cost per hive to look after depends on your business set up and economy of scale like any other business.
My bee keeper has been buying other businesses and orchards. So I'm guessing that the cashflow is pretty decent.
Also, big Honey companies like Aritiki are massively involved.
In hiring to orchardists.
Mackap
29-07-2024, 03:01 PM
I'm a beekeeper that does pollination. Most of my hives only do 1 visit into pollination. But other beekeepers do put there hives into gold then green pollination, so their hives can do 2 pollinations. But with a lot of green being converted there is less opportunities for hives to do this second service. Kiwifruit orchardists are kind of propping up a lot of beekeeping operations at the moment (thanks Toddy!) I used to only do Manuka but have over 30 tonnes of it in storage, and I'm just a small operator. Hopefully comvitas furtunes turn around soon. Beekeepers dropping out left and right.
Toddy
29-07-2024, 03:14 PM
I'm a beekeeper that does pollination. Most of my hives only do 1 visit into pollination. But other beekeepers do put there hives into gold then green pollination, so their hives can do 2 pollinations. But with a lot of green being converted there is less opportunities for hives to do this second service. Kiwifruit orchardists are kind of propping up a lot of beekeeping operations at the moment (thanks Toddy!) I used to only do Manuka but have over 30 tonnes of it in storage, and I'm just a small operator. Hopefully comvitas furtunes turn around soon. Beekeepers dropping out left and right.
Without bees we are all in trouble, so keep up the good work.
Balance
29-07-2024, 03:34 PM
I see Egmont honey has online sales discounting 60% off high grade Manuka. Egmont honey is owned by Nestle but they were selling it off, from what I heard.
CVT has stubbornly refused to discount its products to maintain its premium positioning. And it has tried yo make a virtue of building up and holding on to stock.
Meanwhile, its other manuka honey competitors have been and are discounting heavily - initially multi-floral low UMF but now, high UMF 15+.
Bought some Manuka Health UMF10+ at Pak n Save recently for an overseas visitor to take home, 500g for $20.99 vs the price of Comvita’s 250g UMF5+ for $10.50!
The gold rush seems over and CVT is being left behind.
Mackap
29-07-2024, 03:49 PM
Yes interesting point there Balance. To give you an idea of what us beekeepers are being paid currently for Manuka, price per kg...
UMF 5 - $10-$12
UMF 10 - $15-$18
UMF 15 $30 ish
UMF 20 $40+
There are a lot of markers we need to test for which has a big effect on prices offered.
winner69
29-07-2024, 04:42 PM
Inventory doesn’t appear to be reducing much at all
But a lot more in finished stock and less raw material from a year ago by looks of it
Wonder if in big clean up of Balance Sheet they take chance to write some off.
kiora
29-07-2024, 05:30 PM
Still paying beekeepers to maintain hives to produce more honey that is slow to sell?
2x Stock turnover/year but the devil in the detail?
Need to write some stock off & get it out the door but discounting catch 22?
Fonterra had milk powder over flowing their warehouses years ago & had to discount heavily but turned milk prices around the following year
winner69
29-07-2024, 07:07 PM
Jeez Comvita obviously so full of optimism or they have no real idea as to what’s going on
Here’s how their guidance has evolved last 12 months
FY23. EBITDA $33.5m
Aug23 guidance ….double digit growth in EBITDA
Nov23 guidance $33m-$38m
Feb24 guidance . $30m-35m
May24 guidance $23m-$28m
July24 unaudited $17.1m
winner69
29-07-2024, 07:18 PM
H1 EBITDA was down 32% on pcp
Looks like H2 going to be down about 60% on pcp
Things getting worse as time goes by
David will be peeved he didn’t manage to hock this company off (very attractive and cheap a year ago he said)
Maybe David won’t be around much longer
flyinglizard
29-07-2024, 08:29 PM
H1 EBITDA was down 32% on pcp
Looks like H2 going to be down about 60% on pcp
Things getting worse as time goes by
David will be peeved he didn’t manage to hock this company off (very attractive and cheap a year ago he said)
Maybe David won’t be around much longer
you are right, winner. the board of CVT expects magic will happen without strategy change. A2 and MWE also export to China, but the reports show they are managing new business model to adopt. The hopeless comes from CVT cannot stop this trend, that would be endless loss to the end.
kiwikeith
29-07-2024, 08:41 PM
Jeez Comvita obviously so full of optimism or they have no real idea as to what’s going on
Here’s how their guidance has evolved last 12 months
FY23. EBITDA $33.5m
Aug23 guidance ….double digit growth in EBITDA
Nov23 guidance $33m-$38m
Feb24 guidance . $30m-35m
May24 guidance $23m-$28m
July24 unaudited $17.1m
4th July 2023 (ie a little over 1 year ago) Comvita announced it was buying Honeyworld, a honey retailer in Singapore for $10m. It was going to 'accelerate delivery of our FY25 target of $50M EBITDA'
flyinglizard
29-07-2024, 09:14 PM
4th July 2023 (ie a little over 1 year ago) Comvita announced it was buying Honeyworld, a honey retailer in Singapore for $10m. It was going to 'accelerate delivery of our FY25 target of $50M EBITDA'
Another loss, maybe - $ 50m in FY25
kiwikeith
29-07-2024, 09:35 PM
4th July 2023 (ie a little over 1 year ago) Comvita announced it was buying Honeyworld, a honey retailer in Singapore for $10m. It was going to 'accelerate delivery of our FY25 target of $50M EBITDA'
And what are the chances of a goodwill impairment on the honeyworld acquisition coming up?
bull....
30-07-2024, 09:29 AM
with no end in sight for china downturn , things might stay soft for cvt in the fore seeable future
Leemsip
30-07-2024, 09:59 AM
Another un-investable turd
Another un-investable turd
yep lol..... sad thou
bulltrap
31-07-2024, 03:31 PM
Very solid support at around $1.08. Someone with deep pockets has been soaking up everything the market can throw at them.
That's similar to the start of the month (prior to the downgrade), where the share price sagged to around the same level, and would go no further.
Disc: Holding for a probable bounce, while also holding my nose. Egged on by discount to NTA and mystery buyer - and the chart/depth look oversold.
kiwikeith
31-07-2024, 03:41 PM
CVT reminds me of the adage "What is the definition of a long term investment? A short term investment gone wrong"
I bought CVT on the basis of it being the leader in the industry. Fortunately I managed to sell most of my holdings when the bad news started to flow at a little under $2. But I kept the CVT shares that I had acquired through Sharesies. I now think, despite being significantly down on those shares, I will hold on for another few years to see if the ship can be turned around.
winner69
31-07-2024, 04:12 PM
Very solid support at around $1.08. Someone with deep pockets has been soaking up everything the market can throw at them.
That's similar to the start of the month (prior to the downgrade), where the share price sagged to around the same level, and would go no further.
Disc: Holding for a probable bounce, while also holding my nose. Egged on by discount to NTA and mystery buyer - and the chart/depth look oversold.
Milford given up on them …still selling but we’ll prob never know if they going to sell the 3 million they still had yesterday
There was an old joke- buy when Milford are selling
flyinglizard
08-08-2024, 09:50 PM
15219
big muscle guy tries to stop trend, but the reality is ............
Habits
11-08-2024, 06:44 AM
FYI
Comvita looks to cut jobs, slash production after lower sales in China https://www.rnz.co.nz/news/country/523489/comvita-looks-to-cut-jobs-slash-production-after-lower-sales-in-china
Sideshow Bob
13-08-2024, 08:46 AM
Deck chairs rearranging.....and back to the future
https://www.nzx.com/announcements/436026
Comvita Limited (NZX:CVT) today announces changes of senior company leadership roles. The Comvita Board believes that a different focus for leadership will be required as the Company undertakes a strategic reset of the business at this time. Consideration has been given on how best to optimise the skills and capability available to the company.
Effective from the 31st August the following changes will be implemented;
- David Banfield resigns as CEO and Managing Director and will assume a project based role of Strategic Advisor to the Board.
- Brett Hewlett resigns as Director and Chair of the Comvita Board and assumes the role of Acting CEO.
- Bridget Coates is appointed as Chair of the Board.
- Mike Sang is appointed Chair of Audit & Risk Committee.
- Overall board numbers will be reduced from currently eight Directors to six, with the majority as Independent Directors.
- Alan Bougen, co-founder of Comvita, has been invited by the Board to act in an advisory capacity as Brand Ambassador and Founder.
Board Chair Brett Hewlett says; “We started FY24 encouraged by the resilience of sales and earnings growth that the company demonstrated over the challenging period 2020 through 2023. For the past three years we have invested in both demand and supply capability in anticipation that this positive trend would continue towards a full recovery by 2025. The full extent of the impact of the global economic slowdown on our sales decline during FY24 and the resultant effect on profits and share price has been confronting for the Board and shareholders. Faced with an extremely poor FY24 financial result and the slower than anticipated recovery in global demand we are obliged to pause several longer term investment strategies, and take a more cautious approach to deploying capital and resources, whilst implementing a sharper focus on a number of immediate value opportunities.”
David Banfield joined Comvita as CEO in January of 2020 and led a very successful turnaround of the business with a tightly focused premium product and consumer proposition, based on our core ingredients of Manuka Honey and Propolis. Significant momentum was achieved through FY20-FY23 (through the extremely challenging period of Covid disruptions). In FY23 Comvita reported all-time record revenue of $234m, record EBITDA earnings of $34m, record gross margin of 60% and the Company was awarded the Deloitte 200 best growth strategy for 2023. David was also instrumental in developing Comvita’s ESG corporate platform; this was recognised most notably with an international BCorp certification achieved in 2023. Given the requirement for a longer-term commitment to see through a strategic reset and then the journey back to growth, David has decided to step down. In his new project based role as Strategic Advisor, David will support the Board on several projects on short to medium term strategies for further building revenue and optimising distribution models in key global markets.
David stated “It has been an absolute privilege to lead Comvita over the last 4.5 years. I would like to thank the whole Comvita team for their absolute dedication, commitment and support in delivery of our ambitious strategic plan first shared in 2020 and their belief in our ability to heal and protect the world. I am disappointed to leave at a time when our performance over the last year has been weak, impacted by the slowdown in our biggest market - China. As a believer in a performance culture, I take ultimate responsibility for this result but have a real belief that as conditions improve the investments we have made will help return us to profitable growth in the near future. I look forward to working with Brett and the board over the coming months to further develop our global distribution and business models’.
Chair Brett Hewlett says, “On behalf of the Board I would like to thank David for his significant contribution and commitment to the Company, during a challenging period of both Covid and global economic slowdown, David’s dedication to the Company and to his team has never waned, at times having to endure significant adversity and making countless personal sacrifices. I look forward to continue to work with David in his new role.
Brett Hewlett has been in senior leadership roles for Comvita for the past 20 years. He joined the Company in 2005 as CEO and led Comvita through a programme of significant growth and transformational change through to 2015. Brett returned to Comvita in 2017 as an Independent Director. At the end of FY19 Brett was made Executive Director to lead a strategic review. In January 2020 Brett was made Chair of the Board. In his new capacity of Acting CEO, Brett will focus on cost reduction initiatives, organisational resilience, driving bottom line growth and restoring shareholder value.Bridget Coates joined Comvita in September 2021 as an Independent Director and has served as a member of both the Audit & Risk Committee and the Safety & Performance Committee and is the Chair of the company’s Investment Committee. Bridget has a background in capital markets, in a range of governance roles (NZ Superannuation Fund, Reserve Bank of New Zealand, Fonterra Sustainability Panel) and as Chair of the Centre for Sustainable Finance. She has been involved in building food and beverage businesses in the US market, based on their New Zealand provenance. Mike Sang is currently an Independent Director and member of the Audit & Risk Committee. Upon the departure of Julia Hoare at the end of August, Mike will become the Chair of the Audit & Risk Committee.
The Board has taken the view that the business would be best served with a smaller more focused Board make up. Currently there are eight Directors. With the changes proposed above this will now reduce to five directors, with the majority Independent Directors. Recruitment of a new Independent Director is in process. The Board will be undertaking a review of the needs and skills of future Directors and of a new CEO as determined by the strategic review taking place over the coming months and will make changes accordingly.
Alan Bougen and Claude Stratford founded Comvita in 1975 from humble beginnings in our home base of Paengaroa, NZ. Whilst Comvita has grown to become a global business with more than 90% of revenue derived from 13 offshore markets, the founding values are still richly woven into the strategic and governance principles of the Company today. Alan’s role of Brand Ambassador and Founder will be beneficial in providing the Board and new leadership with the continuity to navigate a way through the proposed changes and strategic reset that lies ahead.
Brett Hewlett says; “I want to thank shareholders and my fellow Directors for their support over the period of my tenure as Chair. It has been both a privilege and a challenge to lead the Board through this period of unprecedented change and global turmoil. While I have a feeling of deep disappointment in the difficult state the Company has found itself in recent times, I know that I am handing over the reins to a highly capable Governance team under new Chair, Bridget Coates. Bridget, the Board and I share a conviction that Comvita has only just begun to realise its true potential. We remain well positioned for a successful future.”
winner69
13-08-2024, 08:51 AM
No surprise Dave is stepping down as CEO
Must be pissed off at not being successful in finding an acquiror by now but that’s still his role without having to be bothered with the day to day hassles of running a struggling business
kiwikeith
13-08-2024, 09:48 AM
No surprise Dave is stepping down as CEO
Must be pissed off at not being successful in finding an acquiror by now but that’s still his role without having to be bothered with the day to day hassles of running a struggling business
Is he stepping down or was he pushed?
Gerald
13-08-2024, 09:54 AM
Is he stepping down or was he pushed?
No chance he was pushed, he ran a very successful turnaround and won the Deloitte 200 best growth strategy for 2023, plus implemented our ESG platform and Bcorp certification.
Perky
13-08-2024, 09:57 AM
I vote for pushed.
From the 2023 top Deloitte 200 growth awards.
Banfield, who joined comvita in January 2020 said the company had lost its way. There were too many products and a lack of focus in the organisation.
I think comvita is still lost…
Perky
13-08-2024, 11:55 AM
Manuka honey market reminds me of Lithium market….was going to be the next big thing….everyone piled into it…now supply grossly exceeds demand. Will takes years to get back to normal
Just the other day there was a beekeeper on these boards saying there’s no money in it and he has tonnes of the stuff in storage. Look at ME today debacle with King Honey. Ngai Tahu shut Ora honey…and so on…and so on.
Weak board here…after saying they need to have a smaller more focused board…why would you appoint ex ceo to do this..
In his new project based role as Strategic Advisor, David will support the Board on several projects on short to medium term strategies for further building revenue and optimising distribution models in key global markets.
Isn’t this what he should have been doing as the CEO?
Never owned and never will.
kiora
15-08-2024, 07:45 AM
"Kos said companies were still working through a backlog of honey from previous bumper seasons - she estimated there could be between 30,000 and 50,000 tonnes sitting in sheds around the country."
Thats a power of honey depresing the value chain?
https://www.nzherald.co.nz/nz/honey-industry-under-pressure-but-still-signs-of-hope-apiculture-nz/ZURJJJ3OHNAHLJAKJG2HPAVLQI/#google_vignette?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Thursday+15 +August+2024
Toddy
15-08-2024, 08:30 AM
There are people selling cheap Manuka honey on the Te Puke Facebook page lately.
It's probably from the CVT coolstore or fallen off the back of the truck from CVT.
10 plus UMF 25 bucks per 500g pots.
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