CVT
01/05/2014 14:50
FORECAST
REL: 1450 HRS Comvita Limited
FORECAST: CVT: Comvita Finishes Year Strongly
Global natural health products company Comvita (NZX: CVT) said today that it
expects net profit after tax (NPAT) for the full year ended 31 March 2014 to
be approximately $7.50m on sales of $115.3m. This compares to NPAT and sales
in the prior year of $7.37m and $103.5m respectively. Earnings before
interest, tax, depreciation and amortisation (EBITDA) is expected to be
approximately $16.4m compared to $14.7m in the prior year. The results are
based on unaudited management accounts.
Second half earnings significantly stronger than first half
For the full year Comvita had an 11% growth in net sales and 12% growth of
EBITDA. For the second six month period alone, Comvita had sales growth in
excess of 24% and growth in EBITDA of 54% over the comparable period of the
prior 2013 financial year.
Comvita CEO Brett Hewlett said, "As signalled to the market in October 2013,
Comvita historically has a year of two profit halves. This effect has been
amplified over the past two years due to shortages of our core raw material,
Manuka honey during the first six month period. However, when unconstrained
by raw material shortages, as happened, in the second six months, we clearly
have growth momentum. The strategy of acquiring apiary businesses is working
to alleviate these supply shortage pressures."
Strong balance sheet is in place
Net Debt as of 31st March is $26.5m million compared to $25.3m million at the
same time last year. Comvita made a number of acquisitions to bolster Manuka
honey sourcing as well as other capital investments in building
infrastructure, systems development, plant and equipment. These investments
were largely funded from operating cash flows and the $9m placement of shares
in September 2013 to our strategic wound care partner, Derma Sciences Inc
(NASDAQ: DSCI), at $3.90 per share.
Full set of audited results announced on Friday 23rd May
Comvita will release its audited results for the full year to March 31st on
Friday 23 May, at which point we will provide a detailed update of progress
in our key markets. This year's annual meeting is scheduled for Thursday 24
July.
# Ends #
For further information:
Brett Hewlett, Comvita CEO, 021 740 160
Neil Craig, Comvita Chairman, 021 731 509
Julie Chadwick, Comvita Communications Manager, 021 510 693
Background information
About Comvita (www.comvita.com)
Comvita is an international natural health and beauty company committed to
the development of innovative products, backed by credible scientific
research. We are the global leader in Manuka (leptospermum) honey and
fresh-picked Olive Leaf Extract, which are at the core of the Comvita product
range. We have approx. 30% of honey supply under our ownership with the
balance of supply from long term contractual and partnership arrangements.
Comvita's Olive Leaf Extract is grown, harvested, extracted and bottled at
the world's largest specialised olive leaf grove, with over 580,000 olive
trees. Comvita sells into more than 18 countries through a network of
wholesale and third-party outlets and online. We have offices in New Zealand,
Australia, Hong Kong, Japan, Taiwan, South Korea and the United Kingdom.
Download the Comvita Investor App:
End CA:00250008 For:CVT Type:FORECAST Time:2014-05-01 14:50:22
