Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


RESEND: Comvita first-half earnings fall 7.4%

RESEND: Comvita first-half earnings fall 7.4% amid short supply of Manuka honey

(Tweaks third paragraph to show reference was to operational costs)

Nov. 21 (BusinessDesk) - Comvita, which sells products based on the health and medical benefits of honey, posted a 7.4 percent decline in first-half profit , saying a shortage of Manuka honey after an inclement 2012 summer constrained sales growth and margins.

Profit fell to $2.39 million, or 7.95 cents a share, in the six months ended Sept. 30, from $2.58 million, or 8.92 cents a year earlier, the Te Puke-based company said in a statement. Sales climbed to $45.4 million from $41.8 million.

The year-on-year result would have been a gain in profit but the year-earlier numbers were restated for what Comvita said were errors in the accounting treatment of operational costs in its apiary business. The amendments didn’t change the full-year result of $8.2 million, a figure the company expects to better in the current year.

“Comvita historically has a year of two halves with the second half year sales and profits significantly stronger than the first half,” said chairman Neil Craig. “We expect this to be the case again this financial year as Asian sales continue to grow strongly.”

Trading activity in China, South Korea and Hong Kong, where Comvita mainly operates a direct-to-consumer retail business, “has been especially strong,” the company said. “Still, in non-Asian markets such as Australia and the UK, “the trading environment has been relatively tough.”

“The other factor that has been a constraint on sales growth and margins during this first half year is the short supply of our key ingredient, Manuka honey,” it said. “The honey crop from last summer was well below average, due to generally inclement weather during the summer of 2011/2012, resulting in a sharp increase in the purchase price for new season honey.”

To limit the impact of price fluctuations, the company is seeking direct ownership of more of its honey supplies. It now has four apiaries in the North Island, which supply about one third of its honey requirements.

The company will pay a first-half dividend of 4 cents a share. It didn’t pay a dividend in the first half of last year. Its shares last traded at $3.70 and have gained 50 percent this year.

This time last year it rejected a $2.50-a-share takeover offer from Cerebos New Zealand, a unit of Singapore-listed Cerebos Pacific.

“We remain confident that both top line and bottom line growth can be achieved for this fiscal year and beyond,” said chief executive Brett Hewlett.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news