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

 

Comvita sees annual earnings lift of up to 32%

Comvita sees annual earnings lift of up to 32%, bemoans bigger half-year split

By Paul McBeth

Sept. 24 (BusinessDesk) - Comvita, which produces health products derived from manuka honey, sees annual earnings growth of up to 32 percent, while bemoaning a growing imbalance between the first and second halves of the year.

The Te Puke-based company expects net profit of between $9 million and $10 million in the year ending March 31, 2015, up from $7.6 million a year earlier, on revenue of between $140 million and $145 million, up from $115 million, it said in a statement. That will largely come through in the second half of the year, due to uneven sales between the northern and southern hemispheres, and after the honey harvest is collected between January and May next year, which will generate revenue from the beekeeping operations.

The split in half-year performance means Comvita anticipates to report a net loss of $4 million in the six months ending Sept. 30 on sales of $56 million, compared to a net loss of $800,000 on revenue of $43 million a year earlier. The loss stems from the accounting treatment of the beekeeping operations, a revaluation of its warrants in Nasdaq-listed Derma Sciences, and acquisitions costs from New Zealand Honey.

"We thought it was important to communicate how the changes to the business impact in the half year and full year reporting," chief executive Brett Hewlett said. "The performance of the business is trending in line with internal forecasts and we expect to be able to report an increase in net earnings of greater than 20 percent for the full year."

In July Comvita acquired Timaru-based New Zealand Honey Producers Cooperative for $12.3 million, the latest in the firm's pipeline of apiary acquisitions to shore up its own supply of raw honey.

The shares were unchanged at $3.65, and have edged up 0.6 percent this year, lagging the 7.1 percent gain on the NZX All Index over the same period. The stock is rated a 'hold' according to the one analyst recommendation compiled by Reuters, with a price target of $3.64.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Super Fund/Canada Bid v NZTA: Tow Preferred Bidders For Auckland Light Rail

The two preferred delivery partners for Auckland light rail have been chosen and a final decision on who will build this transformational infrastructure will be made early next year, Minister of Transport Phil Twyford announced. More>>

ALSO:

9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>

ALSO:

Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>

ALSO: