CVT
23/05/2012 10:09
FLLYR
REL: 1009 HRS Comvita Limited
FLLYR: CVT: Comvita Announces Record Earnings For The Year
Financial Summary: for year ended 31 March 2012
Sales $95.9m (increase of 17%)
EBITDA* $15.5m (increase of 145%)
NPAT** $8.2m
ROCE*** 14.4%
Net Debt / EBITDA 0.9
Earnings per share 29.10 cents
Total Dividends per share 14 cents
Financial Summary: for year ended 31 March 2011
Sales $82.0m
EBITDA* $6.3m
NPAT** $0.5m
ROCE*** 4.3%
Net Debt / EBITDA 3.0
Earnings per share 1.82 cents
Total Dividends per share 3 cents
*EBITDA: Earnings Before Interest, Tax, Depreciation and Amortisation
**NPAT: Net Profit After Tax
***ROCE: Return on Capital Employed
Global natural health and beauty products company Comvita today announces
record earnings for the year ended 31 March 2012.
Net profit after tax (NPAT) rose to $8.2 million in 2012 from $503,000 in
2011 (1) . Sales rose to $96 million from $82 million. Earnings before
interest, tax, depreciation and amortisation (EBITDA) rose 145% to $15.5
million from $6.3 million.
The results are at the top end of guidance foreshadowed at the half-year
result announcement last November (2) and demonstrate Comvita is reaping the
rewards of a growth strategy built on product innovation, an enhanced supply
chain, control of channels to market and investment in research and
development.
The Directors have declared a fully imputed dividend of 10 cents per share
payable on 29 June 2012 for shareholders on the register on 22 June 2012 (the
dividend reinvestment scheme will not apply). This follows an interim
dividend paid in December 2011 of 4 cents per share and takes the total
fully-imputed dividend for the year to 14 cents per share, up from the prior
year's 3 cents per share.
Comvita Chairman, Neil Craig said "this is a very pleasing result given that
for four months, the Board and Management also had to deal with the
distraction of an unwelcome takeover offer by Cerebos Pacific Ltd. We had
solid year-on-year sales growth of 17%, which we have been able to convert
into even stronger earnings growth. This is a clear demonstration of the
productivity gains possible from our business model, based on control of our
channels from raw material supply through to the marketplace."
"Our increase in dividend payout from our historical 40% of NPAT to nearly
50% is a reflection of our confidence in future earnings. At the same time as
increasing the shareholder returns via dividends, we will continue to spend
on capital projects that improve security of supply of all raw materials and
increase profitability further. Our strong balance sheet and strong cash flow
from operations, combined with significant borrowing headroom, allow this. We
had $13m net borrowings at year end and an investment in US-based NASDAQ
listed advanced woundcare and pharmaceutical company, Derma Sciences Inc,
with a market value at year end of approximately $12m."
Reflecting upon the years' operating performance, Comvita CEO Brett Hewlett
said "All markets performed well with the most notable positive sales trends
in our largest markets Australia (+13%), New Zealand (+13%) and Asia (+31%).
Growth in some markets such as the UK and Europe faced the challenges of
continuing economic uncertainty."
"Along with significant sales growth, we have also achieved greater
efficiencies in our global sales and distribution networks. In particular,
changes made to our distribution model in Australia last year are delivering
an improved overall margin. We are no longer dependent on intermediaries in
Australia and now deal directly with our retail customers. In Hong Kong,
where we have an extensive network of 54 retail outlets, we enjoyed
significant same-store sales growth that immediately delivered an improved
profitability."
"Demand for Medical honey based products continues to grow. Globally,
Medihoney(TM) sales are currently growing at an annual rate of approximately
40%. Derma Sciences Inc, Comvita's medical products licensee and distributor,
is also expanding other business streams with a number of advanced wound care
technologies under development."
"During the year, we further progressed land and apiary development
programmes to increase supplies of Manuka honey. In October 2011 we acquired
a Waikato-based beekeeping operation and commissioned a new state-of-the-art
medical honey extraction facility near Kerikeri. We also invested in an
expansion of our Paengaroa production facility. These initiatives helped to
bolster honey production capacity by approximately 45%. The acquisition of
six hectares of land adjacent to our existing home base in Paengaroa will
future proof Comvita for any expansion opportunities."
"Comvita is on a solid growth trajectory that shows no sign of slowing. Our
local presence in-market, our reputation for quality and success in expanding
our product range is ensuring strong brand awareness and loyalty," Mr Hewlett
said.
"We have demonstrated we can sustain this level of growth and that we can
continue to achieve operating leverage gains provided by the scale and scope
of our local and global operations. These all point to a continuing
improvement in net earnings and growth in shareholder value".
(1) The 2011 full-year result was depressed by a net $3.1 million of
one-off costs mainly relating to litigation and the impairment of intangible
assets.
(2) On November 15, 2011, announcing its result for the six months to
September 31, 2011, Comvita said it expected full year sales of $91 million
to $95 million and normalised NPAT of $7.3 million to $8.2 million.
Conference call:
Comvita Chairman Neil Craig and Comvita CEO Brett Hewlett will host a
conference call for investors and media to discuss these results. Details
are:
Wednesday, 23 May 2012 at 12.00pm (NZST)
Attendee Dial-in (New Zealand Toll Free): 0800 450 585
Confirmation Code: 5591115
International Dial-in numbers for toll-free access:
Australia: 1800 554 798 Hong Kong: 800 901 587 China: 4001 935 569
Taiwan: 00801 851 601 South Korea: 00798 613 60978 Singapore: 800 616 3105
Malaysia: 1800 812 876 UK: 0808 234 8407
For further information:
Comvita Chairman
Neil Craig
021 731 509
Comvita CEO
Brett Hewlett
021 740 160
Comvita Communications
Julie Chadwick
021 510 693
About Comvita (www.comvita.co.nz)
Comvita is an international natural health and beauty products company with a
strong New Zealand heritage. We are committed to the development of
innovative natural health and wellbeing products, backed by credible
scientific research. We develop and manufacture products in the categories of
Health Care, Personal Care (Skincare and Wound Care) and Functional Foods
(Health Foods). Manuka (leptospermum) honey is at the core of the Comvita
product range and we are the largest manufacturer and marketer of this
uniquely New Zealand resource. We sell into more than 18 countries through a
network of wholesale and third-party outlets, more than 470 branded retail
outlets throughout Asia - including 400 stores in 40 cities in mainland China
and online. We have offices in New Zealand, Australia, Hong Kong, Japan,
Taiwan,
Name of listed issuer: Comvita Limited
For the full year ended: 31 March 2012
This report has been prepared in a manner which complies with New Zealand
International Financial Reporting Standards and gives a true and fair view of
the matters to which the report relates and is based on audited accounts.
CONSOLIDATED OPERATING STATEMENT
Current Full Year NZ$8,224; Previous Corresponding Full Year NZ$503.
Total operating revenue: NZ$95,928, Up 17%; Previous Corresponding Full Year
NZ$82,009.
OPERATING SURPLUS BEFORE UNUSUAL ITEMS AND TAX:
Current Full Year NZ$11,561; Previous Corresponding Full Year NZ$2,483
Unusual items for separate disclosure: Current Full Year nil; Previous
Corresponding Full Year NZ $nil
OPERATING SURPLUS BEFORE TAX:
Current Full Year NZ$11,561; Previous Corresponding Full Year NZ$2,483
Less Tax on operating profit: Current Full Year NZ$3,337; Previous
Corresponding Full Year NZ$1,980
OPERATING SURPLUS AFTER TAX BUT BEFORE MINORITY INTERESTS:
Current Full Year NZ$8,224, Previous Corresponding Full Year NZ$503
Less minority interests: NZ$nil, Previous Corresponding Full Year: NZ$nil
Equity Earnings: $2; Previous Corresponding Full Year ($17).
OPERATING SURPLUS AFTER TAX ATTRIBUTABLE TO MEMBERS OF LISTED ISSUER :
Current Full Year NZ$8,224; Previous Corresponding Full Year NZ$503.
Extraordinary items after tax attributable to Members of the Listed Issuer:
Nil
OPERATING SURPLUS AND EXTRAORDINARY ITEMS AFTER TAX ATTRIBUTABLE TO MEMBERS
OF THE LISTED ISSUER:
Current Full Year NZ$8,224; Previous Corresponding Full Year NZ$503.
Earnings per share: 29.10cps; Previous Corresponding Full Year 1.82cps
Net tangible assets per share: $1.15p.s. Previous Corresponding Full Year
$0.97p.s.
Final Dividend Payable: 10 cents per share
Date Payable: 29 June 2012
Imputation tax credit on latest dividend: fully imputed
Contacts:
Neil Craig, Chairman, Comvita Limited : 021 731 509
Brett Hewlett, Chief Executive, Comvita Limited : 021 740 160
End CA:00223157 For:CVT Type:FLLYR Time:2012-05-23 10:09:22
