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

 


Comvita annual profit rises 3.3%, sees more growth in 2015

Comvita annual profit rises 3.3% as honey price squeezes margin, sees more growth in 2015

By Paul McBeth

May. 23 (BusinessDesk) - Comvita, which produces health products from manuka honey and olive leaves, lifted annual profit 3.3 percent as the rising cost of honey squeezed margins, and said revenue and earnings would grow in 2015.

Net profit rose to $7.6 million, or 24.37 cents per share, in the 12 months ended March 31 from $7.4 million, or 24.52 cents a year earlier, the Te Puke-based company said in a statement. That's slightly ahead of the $7.5 million profit Comvita signalled earlier this month. Earnings before interest, tax, depreciation and amortisation rose 11 percent to $16.4 million and revenue gained by the same amount to $115.3 million.

"Margins were impacted by the very strong New Zealand dollar and from further sharp rises in the cost of Manuka honey," the company said. "Because of contractual commitments on pricing in the fast growing China market these costs couldn't be recovered within the annual time frame."

Yesterday Comvita announced a $12.3 million acquisition of NZ Honey in cash and scrip to help the manufacturer secure its honey supply. The company acquired two other apiary businesses during the year, and the NZ Honey purchase would meet its target of controlling at least half its supply.

"We are now where we want to be strategically and can place more focus on extending our existing product range and increasing the emphasis on marketing and contribution margins, thereby making full use of our comprehensive infrastructure," Comvita said. "Our outlook for the next fiscal year remains optimistic. We anticipate continued growth in revenue and net earnings."

Comvita's cash and equivalents fell to $2.9 million as at March 31 from $6 million a year earlier, with debt repayments and the purchase of property, plant and equipment accounting for the bulk of the decline. The firm's operational cash inflow rose to $8.5 million from $3 million. Bank debt declined to $28.8 million at the end of the period from $29.4 million a year earlier.

The company is still looking at acquisitions, which "fit our high end Comvita natural product brand" and is looking to spread earnings more evenly through the year. The company typically derives the majority of revenue in the second half of the year.

The board declared a final dividend of 8 cents a share, payable on June 27, taking the total return o 12 cents. Comvita paid 13 cents in 2013.

The shares were unchanged at $3.50 today and have shed 3.6 percent this year. The stock is rated a 'hold' with a target price of $3.64 by one analyst recommendation compiled by Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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