Craigs target price $4.10
CVT has set ambitious targets to continue on transformation programme
CVT has recently set ambitious five-year targets, aiming to double earnings by FY25. While this relies on some top-line growth, CVT are also aiming to significantly improve gross margins through 1) a mix shift toward higher margin digital sales, 2) simplification of its product range, and 3) a focus on China and North America. Overall, the key pillars on CVT's FY25 targets are mid-single digit revenue growth, 60% gross margins, and 20% EBITDA margins. The company has also become more disciplined with its harvest operations, aiming to be break-even in a bad year and making ~$2m of EBITDA in a good year. CVT has now narrowed its focus to high returning sites while closing unprofitable sites which is positive given the material impact a poor harvest season can have. Additionally, around 30% of Manuka plantations are CVT's own, which will likely grow to around 50% over.
I like the product and interested in results forecast for ye23. This years result going to be good and already announced. Nothing more on possible takeover that was reported.
Quote from: Shareguy on Jun 28, 2022, 09:34 PMCraigs target price $4.10
CVT has set ambitious targets to continue on transformation programme
CVT has recently set ambitious five-year targets, aiming to double earnings by FY25. While this relies on some top-line growth, CVT are also aiming to significantly improve gross margins through 1) a mix shift toward higher margin digital sales, 2) simplification of its product range, and 3) a focus on China and North America. Overall, the key pillars on CVT's FY25 targets are mid-single digit revenue growth, 60% gross margins, and 20% EBITDA margins. The company has also become more disciplined with its harvest operations, aiming to be break-even in a bad year and making ~$2m of EBITDA in a good year. CVT has now narrowed its focus to high returning sites while closing unprofitable sites which is positive given the material impact a poor harvest season can have. Additionally, around 30% of Manuka plantations are CVT's own, which will likely grow to around 50% over.
I like the product and interested in results forecast for ye23. This years result going to be good and already announced. Nothing more on possible takeover that was reported.
Well, yes - but don't forget the risks: Single major market (China) with high geo political risks, a non essential product with uncertain health claims (actually both quite comparable to A2M - and look what heppened to them) - and fundamentals even today not cheap - at best fair priced.
I'd consider this company as low gain high risk operation ... but sure - they managed to hype the price up before, maybe they manage to repeat this exercise. Is this enough incentive to invest?
Nestle acquire Egmont Manuka
Obviously weren't interested in Comvita
https://www.rnz.co.nz/news/business/470005/nestle-to-buy-auckland-health-supplements-firm-the-better-health-company
Interesting though winner.
Unfortunately doesn't mention a price.....I seem to remember that when Better Health Co got sold 4-5 years ago, it was at a multiple of revenue (not earnings).
I note they are doing a 50% off sale on UMF 10 as well as a few other products. Wonder why they built up inventory so much only to sell it at such a steep discount? I like to use google trends and similar tools to try get an idea of how things are going, not sure if it is a valid tool but comvita search interest doesn't look impressive over the last few years...
Disc: Sold out a few weeks ago, content with that decision so far.
https://www.bbc.com/news/world-australia-61976446
Looks like the cat/mite is out of the bag across the ditch. Will level the playing field for comvita if manuka producers in Australia have to contend with this parasite like we do. Those poor Australian manuka producers have had a tough last year or two haven't they?
https://www.1news.co.nz/2022/07/01/nz-secures-historic-free-trade-deal-with-european-union/
Manuka honey tariffs to the EU eliminated, not a particularly strong market for comvita right now but could this change things?
EU not a big market. Increase in volume today.
Good to see FTA recognises the word "Manuka" as a New Zealand word. Out friends across the ditch won't be happy with this.
https://www.scoop.co.nz/stories/BU2207/S00034/free-trade-agreement-with-eu-recognises-distinctiveness-of-manuka-as-a-taonga-species-exclusively-from-aotearoa.htm
Well done to David. Has delivered near record earnings (2 best). This guy has performed and has achieved what he said he would.
Nice result.... well done holders.
https://www.nzx.com/announcements/397580
- EBITDA $30.1M +18% and +110 bps vs PCP
- Operating profit $20.1M +65% vs PCP
- NPAT $12.8M +35% vs PCP
- Record revenue $209M +9% vs PCP
- Record margin 60.3% +640 bps to $126M +21.8% vs PCP
- Record investment in brand $28.1M as long- term brand building continued
- Strong top and bottom-line performance:
Top and bottom-line growth in focus growth markets, China and North America
Top and bottom-line growth in Mānuka honey product category
Top and bottom-line growth Ecommerce, Ecommerce 39% of total revenue
- Business transformation plan on track
- Net debt increased by $21.M since 30 June 2021 to $25.5M, leverage ratio <1x
- Positive operating cashflow
- 40% reduction in total recordable injury frequency rate (TRIFR)
- Fully imputed final dividend of 3.0 cps declared, full year FY22 dividends of 5.5 cps +37%
Quote from: Left Field on Aug 25, 2022, 09:17 AMNice result.... well done holders.
https://www.nzx.com/announcements/397580
- EBITDA $30.1M +18% and +110 bps vs PCP
- Operating profit $20.1M +65% vs PCP
- NPAT $12.8M +35% vs PCP
- Record revenue $209M +9% vs PCP
- Record margin 60.3% +640 bps to $126M +21.8% vs PCP
- Record investment in brand $28.1M as long- term brand building continued
- Strong top and bottom-line performance:
Top and bottom-line growth in focus growth markets, China and North America
Top and bottom-line growth in Mānuka honey product category
Top and bottom-line growth Ecommerce, Ecommerce 39% of total revenue
- Business transformation plan on track
- Net debt increased by $21.M since 30 June 2021 to $25.5M, leverage ratio <1x
- Positive operating cashflow
- 40% reduction in total recordable injury frequency rate (TRIFR)
- Fully imputed final dividend of 3.0 cps declared, full year FY22 dividends of 5.5 cps +37%
Hmm - not wanting to rain into the parade ... but isn't Comvita one of the best examples for a cyclical agricultural business with high political risks and relying on a questionable health claim?
Weather good - business good
Weather too wet, too cold, too dry or too hot - business bad
Customers scared about their health - business good
new (or old) heatlh fad (re-)appearing (tiger penis anybody?) - business bad
political stars aligned - business ok
NZ in China's bad basket - business crushed
Sure - looks like business swapped up in the last year, but what does this tell us about the time to come? Nothing.
Quote from: Left Field on Aug 25, 2022, 09:17 AMNice result.... well done holders.
https://www.nzx.com/announcements/397580
- EBITDA $30.1M +18% and +110 bps vs PCP
- Operating profit $20.1M +65% vs PCP
- NPAT $12.8M +35% vs PCP
- Record revenue $209M +9% vs PCP
- Record margin 60.3% +640 bps to $126M +21.8% vs PCP
- Record investment in brand $28.1M as long- term brand building continued
- Strong top and bottom-line performance:
Top and bottom-line growth in focus growth markets, China and North America
Top and bottom-line growth in Mānuka honey product category
Top and bottom-line growth Ecommerce, Ecommerce 39% of total revenue
- Business transformation plan on track
- Net debt increased by $21.M since 30 June 2021 to $25.5M, leverage ratio <1x
- Positive operating cashflow
- 40% reduction in total recordable injury frequency rate (TRIFR)
- Fully imputed final dividend of 3.0 cps declared, full year FY22 dividends of 5.5 cps +37%
Very good result left field considering the economic headwinds :- the future look's even better may have to get in at these bargain prices , be a shame to miss out on this one when the bear recedes
Spend some time today analyzing CVT, was looking in the 2022 Annual report for what shareholding the directors have in this company. No luck, could not find any information on it.
I was under the impression that directors shareholdings need to be disclosed in the annual report.
Am I mistaken?
Quote from: Stockgathering on Sep 04, 2022, 05:40 PMSpend some time today analyzing CVT, was looking in the 2022 Annual report for what shareholding the directors have in this company. No luck, could not find any information on it.
I was under the impression that directors shareholdings need to be disclosed in the annual report.
Am I mistaken?
See Page 46 of Financial Statements ..separate document from Annual Report
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/397580/377479.pdf
You might have (or buy) more shares than some of them.
Thanks Winner, good find. As you say this is a different report than the Annual report.
I find this highly confusing and to me seems like a omission.
Quote from: Stockgathering on Sep 04, 2022, 06:29 PMThanks Winner, good find. As you say this is a different report than the Annual report.
I find this highly confusing and to me seems like a omission.
Most companies combine the Financial Statements and Annual Report into one document (usually called the Annual Report) but some do produce separate documents.
I prefer the separate document approach .....saves scrolling through 50 or 60 pages before you get to the financials.............. and so many pictures in narrative oart.
Were you impressed with the size of the Directors holdings?
Not impressed, on the positive 2 directors purchased some shares last financial year and none of them sold any.
While I still have faith that Comvita is on the right track. Have been utilising the share buyback to sell down my position. Only have a very small holding now. It's been a great ride and a very profitable one for me, but I see better opportunities elsewhere.
https://www.theguardian.com/world/2022/oct/05/new-zealand-drowning-in-manuka-honey-after-a-boom-in-beekeeping
https://www.rnz.co.nz/news/country/476190/manuka-honey-beekeepers-stockpile-as-international-demand-falls
https://www.nzherald.co.nz/business/comvita-builds-up-inventory-after-big-lift-in-profit-revenue/IAMO65TEV65XQ66WYFWLT2FMQI/
One of these headlines is not like the others.
Quote from: Hectorplains on Oct 09, 2022, 03:52 PMhttps://www.theguardian.com/world/2022/oct/05/new-zealand-drowning-in-manuka-honey-after-a-boom-in-beekeeping
https://www.rnz.co.nz/news/country/476190/manuka-honey-beekeepers-stockpile-as-international-demand-falls
https://www.nzherald.co.nz/business/comvita-builds-up-inventory-after-big-lift-in-profit-revenue/IAMO65TEV65XQ66WYFWLT2FMQI/
One of these headlines is not like the others.
Well, they all seem to say that there is too much Manuka honey supply and dropping demand. Not good for a company wich has most of its balance sheet build on Manuka honey, isn't it?
But ok - you are right, the heralds article gives a much more positive colour ... though mainly based on Bainfields "believe" and on the fact that the last year was better than the year before. Power of linear extrapolation? Do they give any facts behind Bainfields "believe"? I don't think so.
How much do people pay for a CEO's believe?
Can one drown in honey?
Not sure about the answers to both questions above, but we might soon know ...
I distinctly recall the promises years ago that revenue would be $400m by 2020.
2022 and I see they're half way there.
This companies CEO's have a track record of talking big and not delivering.
It's a cyclical agricultural company, and demand for its agricultural products moves in cycles like any other commodity. The problem is there's a lot of people who think manuka honey is a miracle cure for almost anything so they think it should be priced like some high end biotech company with unlimited growth potential. Someone hand me another Tui, I am sure beer solves many problems too lol
Quote from: BlackPeter on Oct 09, 2022, 05:43 PMWell, they all seem to say that there is too much Manuka honey supply and dropping demand. Not good for a company wich has most of its balance sheet build on Manuka honey, isn't it?
But ok - you are right, the heralds article gives a much more positive colour ... though mainly based on Bainfields "believe" and on the fact that the last year was better than the year before. Power of linear extrapolation? Do they give any facts behind Bainfields "believe"? I don't think so.
How much do people pay for a CEO's believe?
Can one drown in honey?
Not sure about the answers to both questions above, but we might soon know ...
1. Bainfield is an anagram of 'findable' as in to be found ... or to be found out. The later is my guess.
2. Drowning in honey that would be coming to a sticky end?
Interesting. I have seen similar articles last few years that Manuka sales tanking. They go against what Comvita are saying and more importantly facts show that not to be the case. I do no that there is a glut of some non Manuka and wonder if things are getting distorted.
I do agree however that Comvita having such high inventory this year was not what the CEO stated was going to happen and is a concern. The high inventory was then stated as required due to demand and logistics. We will see at half year result I guess.
The high inventory and better opportunities elsewhere is why I have only a small position left.
Comvita is more than honey
Finding Harmony in Honey with Comvita's Mid Autumn Festival
https://www.m2woman.com/finding-harmony-in-honey-with-comvitas-mid-autumn-festival/
https://www.newshub.co.nz/home/money/2022/10/new-zealand-m-nuka-honey-experiences-boom-in-demand-in-europe.amp.html
more fantastic news from Comvita
David is a great story teller isn't he .... loves that part of a job.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/402674/383808.pdf
So they're planning to get their inventory down by FY25 and in the meantime its all being funded by expensive debt that gets more expensive with almost every passing month. Imagine how Todd from Turners would feel if their stock manager came to him and said its all good Todd, we have far too much inventory, but it should come right in a few years... ROFL...
To many better opportunities. I'm no longer a holder.
A look at this company's financials. No prognostications on its future:
https://recastinvestor.substack.com/p/update-comvita-cvtnzx
While result looks ok, inventory continues to increase up 30% to $145m. Not what David said was going to happen. I think more a result of surplus honey, after a couple of years of good harvests. Debt up to $63m. What's next year going to look like.....
Disc. Not a holder
I think all agri stock need to be priced to take into account all the severe risks from weather, pestilence and disease. Looks like their current year harvest is going to be heavily impacted by recent weather events. Wake me up if they ever get down to an appropriate single digit PE of about 7.
I think you are in for a long sleep...lol
CVT have lowered FY23 guidance by saying they can only now reach double digit ebitda growth ($33m plus) by normalizing ERP costs. These costs end in June 2024.
The East Coast has just been awash with honey in recent years - it's noticeable that some of the bigger players like Mossops (https://www.mossopshoney.co.nz/where-to-buy/) have scaled back operations considerably. The impact of the cyclone here will be minimal, considerably more damage to hives further south in the Hawkes Bay but I have no idea what percentage of hives will have been hit. My best guess is that the cyclone will have a minimal overall impact and we will remain in a honey glut.
The CEO and others selling shares is not a good look. Since then the share price is under $3.
Glad I'm out.
Quote from: Shareguy on Apr 19, 2023, 04:30 PMThe CEO and others selling shares is not a good look. Since then the share price is under $3.
Glad I'm out.
Not good indeed even though the sale was to meet tax obligations - CEO is on $1m salary a year and should be buying, not selling. We can all remember how ATM sp was trashed when then CEO Hrdlicka sold shares to meet her tax obligations.
Most of the sp fall however will be due to the fact that 2023 is a poor manuka honey season imo.
Quote from: Teitei on Apr 20, 2023, 09:09 AMNot good indeed even though the sale was to meet tax obligations - CEO is on $1m salary a year and should be buying, not selling. We can all remember how ATM sp was trashed when then CEO Hrdlicka sold shares to meet her tax obligations.
Most of the sp fall however will be due to the fact that 2023 is a poor manuka honey season imo.
The poor season is hopefully going to help reduce stockpiles of the sweet sticky stuff, and balance out the oversupply. Over the past four years the number of NZ hives has increased by 3 times.
Quote from: Hectorplains on Apr 20, 2023, 09:17 AMOddly the poor season is going to be a phiit
Feeling thickish today - please to explaining what you meaning?
Quote from: Teitei on Apr 20, 2023, 09:20 AMFeeling thickish today - please to explaining what you meaning?
Sorry, my fat fingers on the phone - managed to hit post too soon. Probably need a honey hit to lift the blood sugar levels.
Quote from: Hectorplains on Apr 20, 2023, 09:17 AMThe poor season is hopefully going to help reduce stockpiles of the sweet sticky stuff, and balance out the oversupply. Over the past four years the number of NZ hives has increased by 3 times.
Asked a beekeeper in Gisborne a few weeks ago and he said that the industry is sitting on several years' stock of low quality manuka honey but low stock of high quality manuka honey (ie. UMF >15).
Was at Costco just the other day and saw Egmont Honey UMF 10+ (1 kg) on special at $59.95. Was rather surprised as most of the heavy discounting in the market have been for the low grade UMF 5 and multi-flora manuka honey.
Sign of the times.
Quote from: Teitei on Apr 20, 2023, 09:09 AMNot good indeed even though the sale was to meet tax obligations - CEO is on $1m salary a year and should be buying, not selling. We can all remember how ATM sp was trashed when then CEO Hrdlicka sold shares to meet her tax obligations.
Most of the sp fall however will be due to the fact that 2023 is a poor manuka honey season imo.
Good point. She was not the only one at ATM who sold for so called tax obligations and we all no what happened to the share price from there.
I can only conclude that future prospects are not that great. Hope it's not a sticky mess.
Quote from: Teitei on Apr 20, 2023, 10:22 AMAsked a beekeeper in Gisborne a few weeks ago and he said that the industry is sitting on several years' stock of low quality manuka honey but low stock of high quality manuka honey (ie. UMF >15).
Was at Costco just the other day and saw Egmont Honey UMF 10+ (1 kg) on special at $59.95. Was rather surprised as most of the heavy discounting in the market have been for the low grade UMF 5 and multi-flora manuka honey.
Sign of the times.
I'm a couple of hours north of Giz. This season with the rain and cyclones is being labeled the worst in a twenty years (i.e. back to when the whole manuka honey 'buzz' got going.) However; the East Coast is still awash in honey. Everywhere you go someone's koha-ing you a pot of it. The high quality stuff is purported to have the medical benefits. The taste has a tinge of acridness - it's not my favorite. I dunno about low stocks of it though, I haven't heard that.
The new 'everyone climb on board' thing here is manuka oil (https://www.nzherald.co.nz/lifestyle/turning-east-cape-manuka-oil-into-liquid-gold/2I4R7ACPKFHE7CJLFRMF7QYYRU/)
Quote from: Hectorplains on Apr 20, 2023, 03:14 PMI'm a couple of hours north of Giz. This season with the rain and cyclones is being labeled the worst in a twenty years (i.e. back to when the whole manuka honey 'buzz' got going.) However; the East Coast is still awash in honey. Everywhere you go someone's koha-ing you a pot of it. The high quality stuff is purported to have the medical benefits. The taste has a tinge of acridness - it's not my favorite. I dunno about low stocks of it though, I haven't heard that.
The new 'everyone climb on board' thing here is manuka oil (https://www.nzherald.co.nz/lifestyle/turning-east-cape-manuka-oil-into-liquid-gold/2I4R7ACPKFHE7CJLFRMF7QYYRU/)
https://www.farmersweekly.co.nz/markets/manuka-boom-and-bust-stings-beekeepers/
"But in a classic boom and bust tale, there's also an oversupply of the once-rare mānuka honey, and beekeepers are struggling to cover soaring production costs as exports soften and prices plunge for all but the very best product.
"There might be only a couple of tons of that in all of New Zealand," he said. "The real story is about the hundreds of tons of almost-as-good stuff. Those guys aren't getting anything like those numbers."
Not good at all.
https://www.nzx.com/announcements/411837
The Me Today Group has now completed the honey harvest and finalised all manuka test results. The total yield achieved from the Hive Placements was 61 tonne of honey. The yield was down 50% on what was expected from an average season. However, the quality of the Manuka Honey was also down significantly meaning the value of the honey harvested was much less than expected.
Including depreciation, the total cost of the Harvest was $2.8m; the estimated value of that honey has been determined at $700k meaning a total write-down of approximately $2.1m will be included in the 2023 financial result.
Quote from: Teitei on Apr 20, 2023, 10:22 AMAsked a beekeeper in Gisborne a few weeks ago and he said that the industry is sitting on several years' stock of low quality manuka honey but low stock of high quality manuka honey (ie. UMF >15).
Was at Costco just the other day and saw Egmont Honey UMF 10+ (1 kg) on special at $59.95. Was rather surprised as most of the heavy discounting in the market have been for the low grade UMF 5 and multi-flora manuka honey.
Sign of the times.
Return visit to Costco today to pick up some Black Angus grain fed beautifully marbled thick Scotch Fillet steak (double the price of NZ grass fed) to give an idea of what Costco sells (not just cheap stuff!)
and
very surprised to see same Egmont honey now on special at $29.95 ($59.95 less rebate $30). :o :o :o
Looks to me like the industry has serious over-supply issues with lower grades manuka honey to get rid of!
Significant progress again for Comvita in the chinese market .
with this new deal signed .
Thanks to Hippi
They do seem to be a well run company pushing to go places
Further progress for CVT.....Honeyworld acquisition.
https://www.nzx.com/announcements/414170
Comvita Limited (NZX:CVT) today announced that they have acquired specialist honey retailer HoneyWorld Singapore and its consumer brands in a transaction valuing HoneyWorld at SG$8.5M (NZ$10.36M).
HoneyWorld is the largest Mānuka honey retailer in Singapore and represents a highly strategic acquisition into a business that is the market leader in core Comvita categories in one of Asia's premium growth markets.
Combined with their existing business in this market Comvita's market share in the Mānuka honey category in Singapore will be around 50%. Together, Comvita and HoneyWorld have identified incremental opportunities to further grow household penetration and share of the category in this important market over time.
This acquisition will be immediately accretive to Comvita with a HoneyWorld forecasted 24% increase in return on capital employed (ROCE) once integrated. For the Comvita group this acquisition is forecast to deliver a 22% improvement in EPS. HoneyWorld is forecasting revenue in FY24 of over SG$13M (NZ$15.85M). The acquisition is to be debt funded.
Quote from: Left Field on Jul 04, 2023, 08:45 AMFurther progress for CVT.....Honeyworld acquisition.
https://www.nzx.com/announcements/414170
Comvita Limited (NZX:CVT) today announced that they have acquired specialist honey retailer HoneyWorld Singapore and its consumer brands in a transaction valuing HoneyWorld at SG$8.5M (NZ$10.36M).
HoneyWorld is the largest Mānuka honey retailer in Singapore and represents a highly strategic acquisition into a business that is the market leader in core Comvita categories in one of Asia's premium growth markets.
Combined with their existing business in this market Comvita's market share in the Mānuka honey category in Singapore will be around 50%. Together, Comvita and HoneyWorld have identified incremental opportunities to further grow household penetration and share of the category in this important market over time.
This acquisition will be immediately accretive to Comvita with a HoneyWorld forecasted 24% increase in return on capital employed (ROCE) once integrated. For the Comvita group this acquisition is forecast to deliver a 22% improvement in EPS. HoneyWorld is forecasting revenue in FY24 of over SG$13M (NZ$15.85M). The acquisition is to be debt funded.
So acquisition of $10.36m will generate an EPS increase of 4 cps (was 18.2 eps in 2022 so 22% = 4 cps) which equates increased NPAT of $2.8m.
Taking into consideration it's debt funded so say 6% (so interest cost of $625,000) and tax of 28% means EBIT of $4.5m from HoneyWorld!
So CVT is buying HoneyWorld on an EBIT multiple of 2.3X? Or ROI of 43.5%!
What an outstanding acquisition!
Question - why would the Singaporeans sell at that kind of giveaway price?
Share price 4 bucks next week I reckon on that sort of news
Holders should be happy.
https://www.nzx.com/announcements/416745
Headlines
- Record revenue $234M +12.1% vs PCP
- +$25M and +12.1% vs PCP
- H2 revenue +17.4% vs PCP
- All market segments showed double digit revenue growth
- Greater China revenue over $100M for the first time
- Ecommerce share of revenue 41.7% +19.1% vs PCP
- Gross profit 58.0%, normalised 59.5%* in line with plan
- Operating profit $24M +18.7% vs PCP
- $33.5M EBITDA after ERP +11.4% vs PCP
- NPAT after ERP $13.1M +2.8% vs PCP
- Record investment in our brand $30.5M supporting strong revenue growth
- Net debt $53.4M in line with forecast
- Inventory $136M +3% vs PCP
- Positive operating cashflow of $8M, $29M H2
- Fully imputed final dividend of 3.0 cps declared
- Full year FY23 dividends of 5.5 cps in line with PCP
After the poor result (in my opinion) that was deemed to be a good result, are we surprised that the chair and past ceo has sold shares.
Hewlett Investment Trust - sale of 120,000 ordinary shares to meet personal financial commitments of the Trust
Hm.... Reminds me of A2.
A downgrade, maybe the first of three. Makes sense that the directors sold shares.
https://www.nzx.com/announcements/422379
Quote from: Shareguy on Nov 27, 2023, 11:49 AMA downgrade, maybe the first of three. Makes sense that the directors sold shares.
https://www.nzx.com/announcements/422379
Full year ebitda could be UP 10%+ .....and F25 ebitda still $50m
This really is a confirmation of guidance given at full year result .... Comvita is forecasting double digit EBITDA growth in FY24
Dave always does a great sell job, his rave must have impressed the judges for these Awards
In BusinessDesk (and paid for by Comvita)
(NZX:CVT), the premium natural health and wellness products provider, proudly announces its significant achievement in winning the coveted Best Growth Strategy category at the annual Deloitte Top 200 Awards.
Comvita CEO David Banfield stated, "We're thrilled to receive the Best Growth Strategy award at the Deloitte Top 200 Awards. This recognition is a testament to the hard work and dedication of the talented Comvita team, around the world and here at home in Aotearoa New Zealand, who've played a crucial role in driving our recent growth and success."
Comvita's consumer focus and transformation program, has a focus on sustainability, social and environmental impact and connection to its amazing founding philosophy nearly 50 years ago. This has resonated with discerning consumers in their key markets around the world and has enabled Comvita to achieve strong levels of growth. Looking ahead, Comvita remains on track to deliver its 2025 EBITDA target of c$50M (20%) as they celebrate their 50th year.
I see the manuka honey industry has turned out to be another ostrich egg investment.
No buyers want even the medical grade.
My spys tell me the 2 main healing chemicals in manuka honey can be made in the lab and added to any grade of manuka honey.
Another good rave from Dave ....all bright and rosy when things come right
But another sales and profit downgrade
A few different profit measures mentioned but this is the one that matters -Comvita's unaudited NPAT (Net Profit after Tax) for the period is expected to be a loss of $3.2M ($0.8M NPAT after ERP) compared to a profit of $4.2M in the prior period.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/425571/411890.pdf
What a shocker. From Craig's this morning
• CVT – STOP PRESS – Comvita has released a further trading update ahead of its February interim result (it initially downgraded in late November) – it now expects 1H24 revenue and EBITDA of $103m (-8.1%) / $9.5m (-32%) respectively. It's FY24 Revenue/EBITDA guidance is now $225-235m/$30-35m (from $33-38m) ... representing a circa 9% FY24 earnings downgrade. CVT note their FY25 EBITDA guidance for $50m remains "feasible". As of 31 Dec CVT have net debt of c$85m, inventory of $143m and anticipate an interim loss of $3.2m ($4.2m profit in PcP) ... more from Josh Dale later but in early trading CVT has been marked down c8% and is currently trading around $2.05 ... this is a decade low bar 'COVID capitulation day' in March 2020 when it briefly hit $1.57.
The first post on this thread quotes a Craigs target price of $4.10. Demonstration that broker analysts are as fallible as the rest of us. There is no medical research showing benefits of ingestion of Manuka honey, only some benefits for wound application. It is a high cost low yield honey with a polarising taste profile sold for a very high price. Speculative. Prescient 2nd post on this thread by BlackPeter.
Disc. Do not hold.
Said it many times before and once more now. This is a NO growth agri stock that deserves to trade on no more than 8 times average earnings.
DYOR on measuring average earnings but I would be inclined to average the last 7 years.
Quote from: Basil on Feb 01, 2024, 07:09 PMSaid it many times before and once more now. This is a NO growth agri stock that deserves to trade on no more than 8 times average earnings.
DYOR on measuring average earnings but I would be inclined to average the last 7 years.
And there are no earnings according to Management's H1 forecast. Hmmm, can see why they got growth strategy of the year award.
David been spruiking Comvita for years but has never managed to find a keen suitor .....betcha he now wishes he had because if one comes to the rescue now it's not going to be for very much.
Recall May 2022 he raved in the media that Comvita ticked the boxes as a takeover target .....undervalued with solid prospects and one that had a strategic review (ie cleaned up a mess)
Quote David from Business Desk .... "We recognise that the current share price materially undervalues Comvita, even if just looking at FY22 guidance, let alone the opportunity we see ahead reflected in our 2025 strategic plan," Banfield said. The stock last traded at $3.30, up 1.9% over the past year. "Our current trading earnings multiple is again materially below other benchmark growth companies – which is especially unusual given how much we have simplified, executed our plans and reduced risk in the business."
My bet ......if not acquired soon Dave won't be there next year
It was looking sad some time ago and then insiders selling was another warning. It might even test decade low of $1.57.
I see your point winner. He was looking for a lucrative exit before the shit hit the fan. Good enough for growth strategy of the year though 😆
Quote from: Shareguy on Feb 01, 2024, 07:26 PMIt was looking sad some time ago and then insiders selling was another warning. It might even test decade low of $1.57
All time low is 81 cents, probably all it's really worth.
Quote from: Basil on Feb 02, 2024, 08:03 AMAll time low is 81 cents, probably all it's really worth.
Didn't you once sell some over 10 bucks ......after I suggested you look at the state of their cash flows
Quote from: Basil on Feb 02, 2024, 08:03 AMAll time low is 81 cents, probably all it's really worth.
Apart from the Covid selldown in early 2020, trading at lowest levels since 2011.
Ouch.
Quote from: Teitei on Apr 20, 2023, 10:22 AMAsked a beekeeper in Gisborne a few weeks ago and he said that the industry is sitting on several years' stock of low quality manuka honey but low stock of high quality manuka honey (ie. UMF >15).
Was at Costco just the other day and saw Egmont Honey UMF 10+ (1 kg) on special at $59.95. Was rather surprised as most of the heavy discounting in the market have been for the low grade UMF 5 and multi-flora manuka honey.
Sign of the times.
The alarm bells rang loud and I am pleased I listened to them!
And Costco is still selling seemingly unlimited amount of manuka honey at heavily discounted prices!
Latest is Puriti UMF10+ manuka honey 1 kg jar for $34.99.
Compare that price with Comvita's UMF10+ at $114.90!
Sp has a long way to fall - like its manuka honey pricing.
Ouch!
Comvita reports first half loss
No worries though as per release -
Comvita chair Brett Hewlett said he could empathise with the feelings of surprise and frustration in the current share price expressed by many shareholders.
"I do want to reiterate that our market share and underlying performance remain positive, our prices and margin are stable, and I believe that we are still on track to deliver our FY25 strategic plan once consumer confidence in China returns.
Quote from: winner (n) on Feb 21, 2024, 12:07 PMComvita reports first half loss
No worries though as per release -
Comvita chair Brett Hewlett said he could empathise with the feelings of surprise and frustration in the current share price expressed by many shareholders.
"I do want to reiterate that our market share and underlying performance remain positive, our prices and margin are stable, and I believe that we are still on track to deliver our FY25 strategic plan once consumer confidence in China returns.
Gosh Brett's choice of words are interesting "surprise and frustration" at share price, yet he sold down 120,000 shares. Are we really surprised. Still on track for FY25 plan , even Craigs latest note is sceptical.
Quote from: Shareguy on Feb 21, 2024, 12:46 PMGosh Brett's choice of words are interesting "surprise and frustration" at share price, yet he sold down 120,000 shares. Are we really surprised. Still on track for FY25 plan , even Craigs latest note is sceptical.
He's spent too much time with Raving Dave
Don't forget they won Best Growth Strategy Award recently
Quote from: winner (n) on Feb 21, 2024, 12:50 PMHe's spent too much time with Raving Dave
Don't forget they won Best Growth Strategy Award recently
Ouch ... but good point!
https://www.nzx.com/announcements/426680
Non Binding Indicative offer received......
Quote from: Sideshow Bob on Feb 22, 2024, 03:49 PMhttps://www.nzx.com/announcements/426680
Non Binding Indicative offer received......
That would have made Dave's day ....been working on finding a buyer for a few years now.
I think Board are predisposed to selling so might not play hard ball to any degree
Wonder what Chinese share holder saying about this ...might make him front up
Share price up to 365 on takeover ...wow
Dave will be happy ...his raves finally worked
At least with this offer I reckon Board are conducive to actually selling ...not like other recent offers
Over 4 bucks
Quote from: winner (n) on Feb 23, 2024, 10:33 AMShare price up to 365 on takeover ...wow
Dave will be happy ...his raves finally worked
At least with this offer I reckon Board are conducive to actually selling ...not like other recent offers
Over 4 bucks
$2.65 winner
CVT has inventory or $2 per share, tangible NTA of NZ$2.60 per share and a book value of NZ$3.30 per share ...
Could be a good deal for shareholders after what has happened to The sp recently.
I think a lot of nz companies are at all time lows & ripe for foreign intervention /takeovers .
Can anyone tell me why they did not do a trading halt !!
Apart from wanting to pump the price up of course
Quote from: Shareguy on Feb 23, 2024, 12:19 PMCVT has inventory or $2 per share, tangible NTA of NZ$2.60 per share and a book value of NZ$3.30 per share ...
Maybe so mate but based on average earnings with this no growth highly problematic cyclical company its not worth anything like that "as is" remaining listed on the NZX. On the other hand, under a takeover, you clean out a lot of old dead, overpaid and useless wood, add management who know what they're doing and its probably a good deal for everyone including the acquirer. Their wildly inaccurate forecasting has been absolutely disgraceful over the years.
Another profit downgrade ...quite high this one
Forecasting not a strong point
Still working on takeover offer
Don't forget they won Best Growth Strategy at some do a few months ago
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CVT/431303/418731.pdf
Generous takeover offer not proceeding........(say no more!)
https://www.nzx.com/announcements/432051
"On 22 February 2024, Comvita Limited NZX:CVT (Comvita) advised that an offshore party approached Comvita with a highly conditional, unsolicited, indicative, non-binding proposal to acquire all of the shares in Comvita (Proposal). The Board of Comvita advises that the party has now advised that it will not proceed with the offer. Chairman Brett Hewlett said: "The Board considered the Proposal worthy of careful consideration due to the significant premium to its share price and the credibility of the party."
Directors selling for so called tax reasons and all downhill since then.
At market close share price $1.38. FY25 forecast earning from Craig's EPS $0.068 is a PE of 20.
How many millions has been spent I wonder on the interested party who did not make an offer in the end.
Expensive even at a $1.00 for a no growth company is how I see it.
It's time for breakfast. UMF 10 certified NZ honey that I purchased for $10.00 from a desperate seller on crumpets.
Quote from: Shareguy on Jun 01, 2024, 08:26 AMDirectors selling for so called tax reasons and all downhill since then.
At market close share price $1.38. FY25 forecast earning from Craig's EPS $0.068 is a PE of 20.
How many millions has been spent I wonder on the interested party who did not make an offer in the end.
Expensive even at a $1.00 for a no growth company is how I see it.
It's time for breakfast. UMF 10 certified NZ honey that I purchased for $10.00 from a desperate seller on crumpets.
Writing has been on the wall for a while regarding manuka honey.
When producers took turns and started selling 1 kg of UMF10+ manuka honey at Costco at ever decreasing prices from early 2023, it was clear that the industry was in trouble.
Profit downgrade
https://www.nzx.com/announcements/435174
GLH's
Lots of non-recurring costs. Not sure if organisational restructuring costs are fair if you have guided to cost reductions from those but no worries.
$10-$15m also seems ambitious, wonder why those costs were sitting around before >:(
Net debt/EBITDA getting up around 5 got to be getting close to covenants, might be a slightly sticky situation for some. Only $13m cash at the HY, that has got to be getting very low.
Quote from: Left Field on Jul 29, 2024, 08:58 AMProfit downgrade
https://www.nzx.com/announcements/435174
GLH's
Not sure I would call that "downgrade". This is the unaudited result and - lets face it - it is an unmitigated disaster. Not very likely that the auditor going to find some millions to improve the result.
Chinese market in tatters, Manuka brand rapidly losing value, market is flooded by discounted Manuka honey, general honey market down all over the globe - and their major asset are several years worth of unsold Manuka honey in some store facilities.
Good luck with that!
On the other hand ... old Palestinian proverb says "if Apricots are cheap, plant Apricot trees."
Maybe soon time to buy into the honey market?
As cautioned above several times, I think it's a high risk no growth agricultural company that deserves to trade on a PE of 8 times average earnings.
The problem for shareholders is inclusive of all write-downs the average eps for the last 6 years has been a loss of 10 cents per share. (Source Jarden website eps figures for the last 6 years). Holders might like to consider running for the hills before they get "stung' far worse.
Hey Basil .... Good call you sold CVT above 10 bucks a few years ago
Glad you listened to me at the time I said it was a dog and 10 bucks plus was just ridiculous.
Surprised the share price is not well under $1
Quote from: winner (n) on Jul 29, 2024, 12:56 PMHey Basil .... Good call you sold CVT above 10 bucks a few years ago
Glad you listened to me at the time I said it was a dog and 10 bucks plus was just ridiculous.
Thanks for jogging my memory mate. It was so long ago I'd kind of forgotten about it until you reminded me.
Your input also helped me sell out of SML at $10+ many years ago. Thanks again for that one too.
CVT has stubbornly refused to discount its products to maintain its premium positioning. And it has tried yo make a virtue of building up and holding on to stock.
Meanwhile, its other manuka honey competitors have been and are discounting heavily - initially multi-floral low UMF but now, high UMF 15+.
The gold rush seems over and CVT is being left behind.
https://www.cnn.com/2024/07/26/business/lvmh-luxury-firms-china-slowdown?cid=ios_app
Burberry shares also tanking.
https://ukinvestormagazine.co.uk/burberry-shares-tank-after-sales-decline-and-ceo-steps-down-dividend-suspended/#:~:text=British%20luxury%20fashion%20house%20Burberry%20shares%20sank%20on,were%20down%2010%25%20at%20the%20time%20of%20writing.
People want value these days. Regular honey is fine as far as I am concerned.
Quote from: snapiti on Dec 13, 2023, 06:13 AMI see the manuka honey industry has turned out to be another ostrich egg investment.
No buyers want even the medical grade.
My spys tell me the 2 main healing chemicals in manuka honey can be made in the lab and added to any grade of manuka honey.
just an update from to my previous comments, to be eligible for the label manuka honey there has to be present leptospermum (manuka plant DNA) there is no specified level it just needs to be present. The real value is in the two chemicals present, MGO and UMF. The higher the level of these two chemicals the higher the value of the honey. Unfortunately both chemicals can be made in the lab then added to low grade manuka honey to add value, so all the money that has been poured into the industry can be undone by those buying very low grade Manuka honey and manufacturing and adding in the chemicals later.
Right now the apiarist cant find a buyer for medium to high grade manuka honey. They are all buying into propaganda from with in the industry which has them believing this lack of demand is temporary, none that I have spoken to want to believe it is because of lab modified product, even though they are aware of it.
Jeez Comvita obviously so full of optimism or they have no real idea as to what's going on
Here's how their guidance has evolved last 12 months
FY23. EBITDA $33.5m
Aug23 guidance ....double digit growth in EBITDA
Nov23 guidance $33m-$38m
Feb24 guidance . $30m-35m
May24 guidance $23m-$28m
July24 unaudited $17.1m
Craigs latest
Honey I shrunk the earnings
Earnings downgrade number 4. Maintain Neutral
Comvita has issued its fourth downgrade for FY24, now guiding to EBITDA-after-ERP and non-recurring costs of $17.1m, 30% below CIPe. At a reported level EBITDA is close to break-even and NPAT is a loss of $16.8m. CVT stated that continued demand weakness in China and the flow-on effects through the rest of Asia were to blame as well as a number of one-off costs. Though CVT's FY25 earnings prospects are uncertain, they will have the benefit of cycling a number of non-recurring costs from FY24 including (1) c.$7m ERP costs, (2) costs relating to responding to a Non-Binding Indicative Offer and (3) costs related to the exit from its legacy Medibee joint venture in Australia. This should push FY25 NPAT towards positive territory, but an uplift in demand from China is likely required to drive NPAT beyond breakeven. While CVT's NTA may provide some comfort for investors at $2.63/share as at Dec 2023, how realisable that is remains uncertain. For now CVT sits firmly in the show-me-the-recovery category and trading in line with our revised TP we maintain Neutral.
Is there NTA support? Yes and no
Don't forget Comvita won Best Growth Strategy at some high profile business awards late last year
Indeed. Massive write downs of Honey coming and although a recent purchase the Singapore honey business might have some impairments. Looking at things even the possibility of another CR is not off the cards I reckon.
A sting in the tail for sure. Glad I'm well out.
Quote from: winner (n) on Jul 29, 2024, 07:08 PMJeez Comvita obviously so full of optimism or they have no real idea as to what's going on
Here's how their guidance has evolved last 12 months
FY23. EBITDA $33.5m
Aug23 guidance ....double digit growth in EBITDA
Nov23 guidance $33m-$38m
Feb24 guidance . $30m-35m
May24 guidance $23m-$28m
July24 unaudited $17.1m
These were the days when happy posters told us about the land of milk and honey :);
Today all they have left are some nearly worthless shares of SMT and CVT :o ;
I guess just shows us that the future is neither theirs nor ours to see
"Que sera, sera
Whatever will be, will be
The future's not ours to see
Que sera, sera
What will be, will be"
https://www.youtube.com/watch?v=CcWbZUgymkw&t=41s
Agri stocks and their performance is, frankly, as unpredictable as the weather.
Quote from: Basil on Jul 30, 2024, 10:53 AMAgri stocks and their performance is, frankly, as unpredictable as the weather.
True. Pretty similar to any other industry (even if the cycles might be triggered by different events).
The stories of hype driven share price development goes in all industries - agriculture, mining (incl. some very classical examples), car manufacturing (Tesla recently), chemicals (just in case anybody followed Bayer when they bought Monsanto and what happed afterwards), GameOut ... and any other industry.
Its just - people are story-, fear- and greed- driven, and nobody has a clue what might happen next.
But lets face it - while CVT is an agri stock, the big up- (and down) cycle over the recent years was mainly caused by (unproven) health impacts combined with hype and FOMO. Just another story of hype and gloom.
CVT changes the guard....CEO resignation etc..... is it enough?
https://www.nzx.com/announcements/436026
Effective from the 31st August the following changes will be implemented;
- David Banfield resigns as CEO and Managing Director and will assume a project based role of Strategic Advisor to the Board.
- Brett Hewlett resigns as Director and Chair of the Comvita Board and assumes the role of Acting CEO.
- Bridget Coates is appointed as Chair of the Board.
- Mike Sang is appointed Chair of Audit & Risk Committee.
- Overall board numbers will be reduced from currently eight Directors to six, with the majority as Independent Directors.
- Alan Bougen, co-founder of Comvita, has been invited by the Board to act in an advisory capacity as Brand Ambassador and Founder.
David on way out. Impairments to come on recent Singapore buy and honey valuation I reckon. Then there is the debt.
Quote from: Left Field on Aug 13, 2024, 09:08 AMCVT changes the guard....CEO resignation etc..... is it enough?
Pretty thorough rearranging of the deck chairs on the Titanic.
Quote from: Left Field on Aug 13, 2024, 09:08 AMCVT changes the guard....CEO resignation etc..... is it enough?
https://www.nzx.com/announcements/436026
Effective from the 31st August the following changes will be implemented;
- David Banfield resigns as CEO and Managing Director and will assume a project based role of Strategic Advisor to the Board.
- Brett Hewlett resigns as Director and Chair of the Comvita Board and assumes the role of Acting CEO.
- Bridget Coates is appointed as Chair of the Board.
- Mike Sang is appointed Chair of Audit & Risk Committee.
- Overall board numbers will be reduced from currently eight Directors to six, with the majority as Independent Directors.
- Alan Bougen, co-founder of Comvita, has been invited by the Board to act in an advisory capacity as Brand Ambassador and Founder.
I get a grumpy face when announcements like this one are marked as Price Sensitive. There's nothing remotely quantifiable in there.
Very successful turnaround I see ;)
Comvita are one of loudest lobiest in an industry trying to cover up or not face up to a number of realities, bee keepers work bloody hard so the BS they are being feed right now, to keep forward supply going, will be seen for what it is sooner than later...Manuka gone the same way as ostrich farming
Quote from: bulltrap on Aug 13, 2024, 09:42 AMI get a grumpy face when announcements like this one are marked as Price Sensitive. There's nothing remotely quantifiable in there.
Not quantifiable but significant for CVT nevertheless?
Old CEO back and new CEO out after failing to arrest decline of company and effect a takeover.
So where does CVT go from here?
Shareholders did have an opportunity to exit during the takeover talks so hope some did.
Quote from: Teitei on Aug 13, 2024, 02:23 PMNot quantifiable but significant for CVT nevertheless?
Old CEO back and new CEO out after failing to arrest decline of company and effect a takeover.
So where does CVT go from here?
Shareholders did have an opportunity to exit during the takeover talks so hope some did.
Comvita is riding the wrong horse, worst still is they have thrown a heap of money at this donkey, they still pumping the industry, but I suppose even if you paid 30k for a breeding pair of Ostriches at the peak you could still sell them for about 5% of that 2 years later.
Goats, Deer, Tulips...we've all seen this movie before and it doesn't have a happy ending.
"Goats, Deer"
racing Kangaroos?
https://www.youtube.com/watch?v=awwQC-32R2k
what is going on here.... homing birds of a feather ...
big business racing birds ....
https://www.youtube.com/watch?v=iMfWcjoE--Y
racing goats ....why not... place a responsible bet at the TAB...
cant see Winner going for it ...
just sharing...
Challenging times
https://www.nzx.com/announcements/437063
FY24 Results snapshot
• Revenue of $204.3M -12.7% vs PCP (FY23: $234M)
• Gross profit of 55% -300bps vs PCP (FY23: 58%)
• EBITDA*
- Reported -$59.6M (FY23: $30.6M)
- Underlying** $14.6M (FY23: $33.5M)
• NPAT
- Reported -$77.4M (FY23: $11.1M)
- Underlying -$5.6M (FY23: $13.1M)
• Non-recurring one off costs of $15.7M
• Non-cash impairment of $59.8M*** before tax (FY23: $0)
• Net debt $79.7M (FY23: $53.4M)
• Inventory $134.4M (FY23: $136M) targeting material inventory reduction in FY25
• No dividend declared
Key points
• Demand: Abrupt change in consumer demand following macro-economic challenges in China and loss of a major customer in the North America market
• Cancellation of major shopping events (12:12 and 6:18 shopping festival) and weak 11:11 festival in China severely impacted demand
• Pricing: Significant unsustainable aggressive short-term price driven promotions from competition and beekeepers exiting the category
• Supply: Over production from FY17 – FY22 has created a glut of honey being cleared in markets around the world. Between 2020 and 2023 there has been a 56% reduction in supply, in addition, hive numbers are forecast to drop by 50% to c500K by 2025
• Business model designed for anticipated growth with a significant fixed cost element
• Long term cost-out programme initiated and on track, targeting $10M-$15M annualised savings to enable Comvita to be agile through different economic cycles
I'm struggling to find any good news in this result. Loss of $77m. EPS of -$1.10
Breached banking covenant. Small impairment to inventory. Caravan in the US impaired to nil value.
No guidance and no divi.
Quote from: Shareguy on Aug 29, 2024, 08:49 AMI'm struggling to find any good news in this result. Loss of $77m. EPS of -$1.10
Breached banking covenant. Small impairment to inventory. Caravan in the US impaired to nil value.
No guidance and no divi.
Certainly a worrying results. No wonder the potential acquirer walked away.
No guidance or dividend - not surprising given that CVT is now going through a leadership transition.
More downside to come as new CEO & management sure to clean out & clean up the shelves & the books.
Blame all on previous management.
The tough trading conditions and write-downs were well signposted, so it's very bad but not shocking.
I've been scratching my head about those write-downs - basically all intangibles and investments written off, with inventory basically unscathed. With a glut of supply and rampant discounting, surely inventory should've been at the front of the queue for a haircut. That honey is getting hairy.
Disc: Still holding for value and expecting a bounce. Wouldn't surprise to see more consolidation in the sector this year. Previous suitor now knows what the company is worth, and could have another go with a lower offer.
Quote from: bulltrap on Aug 29, 2024, 10:02 AMThe tough trading conditions and write-downs were well signposted, so it's very bad but not shocking.
I've been scratching my head about those write-downs - basically all intangibles and investments written off, with inventory basically unscathed. With a glut of supply and rampant discounting, surely inventory should've been at the front of the queue for a haircut. That honey is getting hairy.
Disc: Still holding for value and expecting a bounce. Wouldn't surprise to see more consolidation in the sector this year. Previous suitor now knows what the company is worth, and could have another go with a lower offer.
One thing about honey - it does not deteriorate and if the myth is to be believed, manuka honey actually improves with age. So depends on how CVT has been valuing their inventory - worrying thing is that they are using DEBT to fund the inventory!
Yes. I think a good chance of a cap raise. Will watch with interest.
Quote from: Teitei on Aug 29, 2024, 10:16 AMOne thing about honey - it does not deteriorate and if the myth is to be believed, manuka honey actually improves with age. So depends on how CVT has been valuing their inventory - worrying thing is that they are using DEBT to fund the inventory!
A friend of mine who sells Manuka Honey recently gave me some that was a bit grainy. He said the sugar had crystallised as had been stored for ages. CVT have temp controlled rooms so doubt will be an issue for them. Still tasted good though. Not sure if this is widespread or not?
Quote from: Shareguy on Aug 29, 2024, 12:27 PMA friend of mine who sells Manuka Honey recently gave me some that was a bit grainy. He said the sugar had crystallised as had been stored for ages. CVT have temp controlled rooms so doubt will be an issue for them. Still tasted good though. Not sure if this is widespread or not?
I suppose that only happens for honey sold uncreamed, and if it happens while in bulk storage, creaming would fix it without losing value.
Honey experts, please CMIIW.
Quote from: bulltrap on Aug 29, 2024, 12:53 PMI suppose that only happens for honey sold uncreamed, and if it happens while in bulk storage, creaming would fix it without losing value.
Honey experts, please CMIIW.
Not a problem :
https://www.epicurious.com/expert-advice/why-does-honey-crystallize
Quote from: Teitei on Aug 29, 2024, 01:45 PMNot a problem :
https://www.epicurious.com/expert-advice/why-does-honey-crystallize
Interesting. Thanks Teitei
Quote from: Shareguy on Aug 29, 2024, 12:27 PMA friend of mine who sells Manuka Honey recently gave me some that was a bit grainy. He said the sugar had crystallised as had been stored for ages. CVT have temp controlled rooms so doubt will be an issue for them. Still tasted good though. Not sure if this is widespread or not?
Had some fancy Manukau honey and didn't taste that good. Last week my wife bought a 1kg cheap house brand clover honey at New World for only $13. I can scarcely believe how delicious it tastes. Can't get enough of it. I think the whole Manukau honey thing is just a fad that's steadily dying.
Comvita a complete train wreck and has been for many years.
https://www.apiaristsadvocate.com/post/comvita-s-freeze-out-hits-honey-suppliers-hard
https://www.apiaristsadvocate.com/post/the-vulnerability-of-comvita
Quote from: Shareguy on Oct 06, 2024, 05:18 PMhttps://www.apiaristsadvocate.com/post/comvita-s-freeze-out-hits-honey-suppliers-hard
https://www.apiaristsadvocate.com/post/the-vulnerability-of-comvita
That's some top-notch reporting and analysis right there... refreshing in these days of paywalls and AI-generated spam.
An August article also from Bruce Roscoe gives more insight and background on Comvita/Capilano:
https://www.apiaristsadvocate.com/post/the-landmine-landscape-of-honey-company-mergers-and-acquisitions
Apparently Bruce is a former analyst for Deutsche Bank Japan and moonlit as a travel writer while there. I'm putting his book Windows on Japan (https://www.goodreads.com/book/show/1222627.Windows_on_Japan) on my reading list.
Interesting Bulltrap.
From the annual report I see they finished the year with $80m net debt.
Brett (page 16) says "The board are at pains to quickly address the value gap between prevailing market cap (circa $87m) and Nta ($220m), or even consensus analyst valuation ($120m)"
The market has clearly lost confidence in this company. The valuation of the inventory is the question I think investors need to consider. If it was sold today on the open market in bulk I suggest its worth nothing like what its on the books at. Brett says no cap raise but I think the market thinks otherwise.
Oh Dear.?
9 December 2024
Accounting irregularities impact prior periods
Comvita Limited (NZX:CVT) has identified certain accounting irregularities in its China subsidiary
leading to misreporting of sales and accounts receivables in the financial years FY23 and FY24.
The Company has been undertaking a comprehensive review of the business including core
processes, structure and organisation design. Following alleged accounting irregularities
coming to Comvita's attention, the Company appointed an independent chartered accounting
firm to assist with its review. An investigation is in progress, with oversight by the Board and
senior management.
Based on a preliminary report provided to the Company by the independent chartered
accounting firm, irregularities were identified relating to sales and accounts receivable in FY23
and FY24 and have been substantiated. These irregularities are estimated to have resulted in
an overstatement of post-tax earnings in the order of $1.0 million in FY23, and $1.0 million in
FY24, subject to audit. The review is ongoing and the Company is also working with its
auditors to determine the appropriate accounting treatment.
Comvita will update the market on further progress of its review process in due course.
Quote from: lorraina on Dec 09, 2024, 09:01 AMOh Dear.?
9 December 2024
Accounting irregularities impact prior periods
Comvita Limited (NZX:CVT) has identified certain accounting irregularities in its China subsidiary
leading to misreporting of sales and accounts receivables in the financial years FY23 and FY24.
The Company has been undertaking a comprehensive review of the business including core
processes, structure and organisation design. Following alleged accounting irregularities
coming to Comvita's attention, the Company appointed an independent chartered accounting
firm to assist with its review. An investigation is in progress, with oversight by the Board and
senior management.
Based on a preliminary report provided to the Company by the independent chartered
accounting firm, irregularities were identified relating to sales and accounts receivable in FY23
and FY24 and have been substantiated. These irregularities are estimated to have resulted in
an overstatement of post-tax earnings in the order of $1.0 million in FY23, and $1.0 million in
FY24, subject to audit. The review is ongoing and the Company is also working with its
auditors to determine the appropriate accounting treatment.
Comvita will update the market on further progress of its review process in due course.
Counting beans (or is it in this case counting bees?) does not seem to be that easy after all :) ;
Down 2.4% today on sale of 1 share on Friday close!
That's a trading loss of 1c (81c down from 82c pre-close) amplifying to $1.34M paper loss of market cap.
That's one of the more flagrant examples of 'marking the close' that I've witnessed, and TBH I thought the NZX had guardrails around minimum volume for price setting.
Disc: Holding (somebody had to)
The 1 cent is turning up too often.
Yesterday over 3.5 million GEN General Capital shares were traded at 18.5 cents.
Today 1 share at 19 cents traded.
Next seller has 2 cents for sale at 19.8 cents.
Then there is 10 shares for sale at 30 cents
Accounting problems all sort
Good story coming up later in month
Bad times all behind them ..maybe future looking good
https://announcements.nzx.com/attachment/437107.pdf
Quote from: winner (n) on Feb 10, 2025, 08:53 AMAccounting problems all sort
Good story coming up later in month
Bad times all behind them ..maybe future looking good
https://announcements.nzx.com/attachment/437107.pdf
Yep, their newest guidance is confirming the already previously forecasted net loss. That's good, they are consistent - share holders can rely on them! Nothing worse than a company changing their forecast, isn't it?
At least staying in NZ ownership. At $80c Will leave a sour taste for many. However could of been far worse and stung by getting nothing.
https://announcements.nzx.com/attachment/449693.pdf
Many seasoned investors have seen the writing on the wall for quite some time. I have warned extensively over the years about this company and its likelihood of stinging investors and sure enough, all they're getting is a pittance.
I want to acknowledge my thanks to "Forest" who posts very occasionally on the other channel these days for first opening my eyes, many many years ago that all was not as sweet and tasty with this one as it appeared to be.
Selling these and Synlait both for around the $12 mark many years ago is two of my best decisions I've ever made. Its bloody hard to beat clover honey selling for only $13 a kilo under the house brand at New World. Try it, if you want some sweetness at a good price.
https://www.thepost.co.nz/business/360831941/bnz-puts-honey-maker-belonging-large-private-landowner-receivership
If I was advising Florenz and Mark Stewart I'd be standing in the market at 80cps on Monday for the whole company - I'd be signing up any major shareholders who voted for the offer to succeed over the weekend
Then again Mark Stewart doesn't need much advice from me
Hmmmm......
Yes it's going to be interesting to see what happens. Thought Wangs comment that receivership a possibility scaremongering to say the least.
"To bee or not to bee" (spelling intentionally changed) is one of the most famous lines in all of English literature. (Shakespear). It marks the beginning of Hamlet's "to be or not to be" speech, which is a soliloquy. The speech and the line reflects some of the existential questions that Hamlet the play and Hamlet the character are interested in and seems entirely appropriate here. The companies long and truly horrendous track record with woefully inaccurate forecasting is arguably its biggest handicap, (certified B Corp alright but not in a good way), and could very easily be the telling factor with its bankers. Good luck to shareholders.
Quote from: Basil on Nov 15, 2025, 04:10 PM"To bee or not to bee" (spelling intentionally changed) is one of the most famous lines in all of English literature. (Shakespear). It marks the beginning of Hamlet's "to be or not to be" speech, which is a soliloquy. The speech and the line reflects some of the existential questions that Hamlet the play and Hamlet the character are interested in and seems entirely appropriate here. The companies long and truly horrendous track record with woefully inaccurate forecasting is arguably its biggest handicap, (certified B Corp alright but not in a good way), and could very easily be the telling factor with its bankers. Good luck to shareholders.
I'm glad you listened to me when the share price was over 12 bucks a few years ago
Their cash flow performance back then was a sure sign they were never going to be successful ...and cash flows are still pretty abysmal.
They've told some really good stories over the years eh but stories were all they were
Comvita were trading in the low 50s prior to the takeover bid and are back there now, in what looks like a failed bid.
My guess is they will have a rights issue to reduce debt and giving them breathing space as business recovers once the bid is withdrawn.
What about 2 shares for 1 at 15 cents to raise 20 million after expenses?
Should add this pure speculation on my part 😄
Quote from: afc029871 on Nov 15, 2025, 08:48 PMComvita were trading in the low 50s prior to the takeover bid and are back there now, in what looks like a failed bid.
My guess is they will have a rights issue to reduce debt and giving them breathing space as business recovers once the bid is withdrawn.
What about 2 shares for 1 at 15 cents to raise 20 million after expenses?
Should add this pure speculation on my part 😄
Just fyi -the business never seems to recover
Disaster prone seems the best phrase to describe this company for the last decade
You have to wonder how many shareholders will dip into their pockets for a cap raise after Wangs comments of possible receivership.
The only basis for putting more money in is if you believe their forecast of future EBIT.
Over the last decade or so, their track record of doing what they say they will do is one of the very worst on the market.
Throwing good money after bad in my opinion.
https://www.nzx.com/announcements/464426
The company desperately needs new capital but despite showing a lot of leg on the street corner, they've had no takers.
Their rubbish balance sheet, massive debt and lack of profitability; all feels so Synlait-ish.
https://api.nzx.com/public/announcement/464782/attachment/459212/464782-459212.pdf (https://api.nzx.com/public/announcement/464782/attachment/459212/464782-459212.pdf)
From chairs address p6
"The Board has a clear preference for a recapitalisation approach that seeks to provide
existing shareholders an opportunity to support the company, while also seeking to
minimise dilution.
Since the Scheme vote, we have received significant expressions of interest from both
existing shareholders and new parties. This has expanded the range of potential options
available to the company.
The Board and management are now engaged in detailed discussions with several
parties as we work through the structure of the recapitalisation.
This includes options for placements above current market price.
These discussions are continuing and remain subject to further evaluation, with no
certainty as to outcome at this stage."
Mentions of 25M placements but wait for it ..... a placement above market price, unheard of, who would pay more than market price????? Watch this space.
https://www.nzherald.co.nz/business/companies/agribusiness/comvita-capital-raise-brings-fraser-and-neave-in-as-strategic-investor/KXLFKW4FGNEQPCTNG3MRSEIRKI/