CVT
22/05/2015 09:32
FLLYR
PRICE SENSITIVE
REL: 0932 HRS Comvita Limited
FLLYR: CVT: Comvita Announces Records Earnings
Global natural health products company, Comvita (NZX:CVT) today announced
record earnings for the year ended 31 March 2015.
Net profit after tax (NPAT) rose to $10.2m from $8.0m in 2014, a 28%
increase. Sales rose 32% to $152.7m from $115.3m in 2014. Earnings before
interest, tax, depreciation and amortisation (EBITDA) rose to $23.0m from
$17.0m, an increase of 35%.
The Directors have declared a fully imputed dividend of 9 cents per share,
payable on 26 June 2015 for shareholders on the register on 19 June 2015.
This follows an interim dividend paid in December 2014 of 4 cents per share
and takes the total, fully imputed dividend for the year to 13 cents per
share (2014: 12 cents). This increase in dividend per share is on a 24%
increase in total shares on issue.
Comvita Chairman Neil Craig said: "These results comfortably exceed the
company's earlier forecast and demonstrate Comvita's sales momentum is
strong. Our investments in market development, infrastructure and systems
have provided, and will continue to provide, sustainable earnings growth."
Mr. Craig said: "Our balance sheet is in good shape, having successfully
completed a $24.4m capital raising in December 2014. The proceeds have been
used to reduce borrowings and further support a build-up of honey inventory,
as well as affording financial capacity to consider further acquisitions. Any
acquisitions will need to fit within both our existing investment criteria
and product platforms and be earnings accretive in the short term."
"From the capital raising proceeds $1.7m have been used to exercise our
warrants in Derma Sciences, lifting our total shareholding of Derma
(DSCI:Nasdaq) to approximately 4% and further securing this relationship,
which provides access to the global medical honey woundcare market."
Reflecting upon the year's operating performance, Comvita CEO Mr. Hewlett
said: "Sales, driven by record tourism numbers, and growth in the New Zealand
market have been outstanding, along with sales in our second fastest growing
market of Australia. Globally, fresh Olive Leaf Extract sales have shown 27%
year-on-year growth. An upwards trend continues in the China market and
worldwide, web sales increased 55%."
"Sales of honey-based products have risen significantly for the year based on
increased availability of raw material, including the strategic benefits of
the acquisition of New Zealand Honey Limited in July 2014."
"Whilst the margins on these honey products are lower than the previous year,
we expect overall returns to increase going forward, as we grow our higher
value Comvita-branded product lines at a faster pace than lower valued
grocery 'honey in a pot'."
Mr. Hewlett said: "We are confident that, based on a more secure Manuka honey
supply position, a continued focus on optimising the performance of our
international markets and continued revenue growth in both honey and
non-honey product lines, we expect further net earnings growth in 2015-2016."
Financial results for the year to 31 March 2015
Revenue 2015 $152.7m, 2014 $115.3m, change 32%
EBITDA 2015 $23.0m, 2014 $17.0m, change 35%
NPAT 2015 $10.2m, 2014 $8.0m, change 28%
Earnings per share (cents)* 2015 29.9, 2014 26.1, change 14%
Dividend (cents) per share** 2015 13.0, 2014 12.0, change 8%
* Based on weighted average number of shares on issue during the year
**Based on 39.6m shares on issue as per record date 19 June, 2015.
# Ends #
For further information:
Brett Hewlett, Comvita CEO, 021 740 160
Julie Chadwick, Comvita Communications Manager, 021 510 693
Background information
About Comvita (www.comvita.com)
Comvita (NZX:CVT) is a global natural health company committed to the
development of innovative products, backed by ongoing investment in
scientific research. We are the world leaders in Manuka (leptospermum) honey
and fresh-picked Olive Leaf Extract, which are at the core of the Comvita
product range.
We have approximately 50% of honey supply under direct ownership or control,
with the balance of supply from long term contractual and partnership
arrangements. Comvita pioneered the development and use of medical grade
Manuka honey and was the first to receive FDA approval (2007). We partner
with US wound care company Derma Sciences, Inc. (NASDAQ:DSCI), the global
licensee for Medihoney specialist wound care products, which are used in
hospitals and medical centres around the world. Comvita's freshly picked
Olive Leaf Extract is grown, harvested, extracted and bottled at the world's
largest specialised olive leaf grove, with over one million olive trees.
Comvita sells into more than 18 countries through a network of our own
branded retail locations, online (seven country specific e-commerce websites)
and third-party outlets. We have over 500 staff located in New Zealand,
Australia, Hong Kong, Japan, Taiwan, South Korea, the United Kingdom and the
USA.
End CA:00264680 For:CVT Type:FLLYR Time:2015-05-22 09:32:09
