There is a great quote in the interview... "Demand almost seems insatiable"
http://podcast.radionz.co.nz/busines...growth-048.mp3
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There is a great quote in the interview... "Demand almost seems insatiable"
http://podcast.radionz.co.nz/busines...growth-048.mp3
Have decided to take up the rights. I'm hoping they'll be in the sweet spot for the next 18 months :)
If you want any extras, last day of rights trading on Monday.
Comvita looking a bit weak. Probably due to a poor honey harvest. I'm not expecting a great result.
http://tvnz.co.nz/national-news/pric...-video-5813152
Interesting. Thanks Noodles.
My feeling is it could potentially have more of an impact on next years financial results for CVT.
Major sales for CVT are in the Asia region and occurs around December/January each year, which I think would mostly come through last year's production.
Also, there should be some (not all) of the efficiency gains via acquisition of NZ Honey showing through for this financial year when the results come out in May.
In all, at this stage, I am cautiously optimistic.
Logically, your reasoning seems right, but p13 of the rights offer document is very explicit.
Each 10% decline in the summer honey harvest has $1mil decline in NPAT. It might have something to do with the following statement for the 1h14 report..."Another key contributing factor is that ownership of a very large beekeeping operation has resulted instructural changes to the business. The accounting treatment for beekeeping operations, means that theprofit benefit for the wider business, generated from the cost advantages of ownership, can only berecognised after the honey harvest is collected in the period January-March 2015. This results in a negativeeffect on the NPAT result for the first half of the year.”"
So the honey producer (Comvita owned producers) is going to struggle.
There should also be come currency relief.
I suppose we need to look through seasonal variations in honey supply as it does not really reflect the underlying performance of the business.
As always I'm a natural pessimist and expect the worst.
All looking good !!
The forum always talking about milk, they have all forgotten about the honey
'Comvita has good sales growth momentum carrying into the new fiscal year.
The business infrastructure is geared to meet the demands of another growth
year. The honey supply situation is looking relatively stable and growing at
least in line with our short to medium term sales forecasts. Our outlook is
for another good year of both sales and earnings growth.'
Good result out today, profit up 28% Dividend up.
Whats not to like?