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

 


Comvita FY profit falls 10%, beating guidance

Comvita FY profit falls 10%, beating guidance, on honey shortage, rising costs

May 23 (BusinessDesk) - Comvita, which produces health products from manuka honey and olive leaves, posted a 10 percent decline in full-year profit, beating its own guidance as it coped with a shortage of honey and higher costs.

Net profit fell to $7.37 million, or 24.52 cents a share, from $8.2 million, or 27.85 cents, a year earlier, the Te Puke-based company said in a statement. Sales rose 8 percent to a record $103.5 million, exceeding its February forecast of about $100 million.

Comvita shares last traded at $3.75 and are little changed this year. In 2011, the company held off a hostile takeover offer of $2.50 a share, which was below an independent valuation of the company at the time of $3.40 to $4.

The company said strong demand from Asian markets China, Hong Kong and Korea helped insulate it from a shortage of honey and increased costs. That helped offset “challenging trading conditions” in the UK, Europe and Australia and the impact of a high kiwi dollar that pushed down earnings before interest, tax, depreciation and amortisation by 5 percent to $14.7 million

Honey supply is now returning to normal levels following an above-average summer flowering season, it said.

“We have taken steps to shore up our manuka honey supply with long term supply contracts, and acquisition in October of another large manuka honey apiary business and the expansion of hive numbers,” said chairman Neil Craig.

“The 2013 manuka honey harvest has been much better than the prior year and we expect the raw material supply to return to normal this year,” he said. He didn’t give a forecast for the current year.

Comvita will pay a final dividend of 9 cents a share, making 13 cents for the year, down from 14 cents a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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