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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news