CVT-Comvita

[Basil]

CVT changes the guard....CEO resignation etc..... is it enough?

Pretty thorough rearranging of the deck chairs on the Titanic.

[bulltrap]

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.

I get a grumpy face when announcements like this one are marked as Price Sensitive. There's nothing remotely quantifiable in there.

[Gerald]

Very successful turnaround I see 

[snapiti]

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

[Teitei]

I 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.

[snapiti]

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.

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.
 

[Basil]

Goats, Deer, Tulips...we've all seen this movie before and it doesn't have a happy ending.

[Waltzing]

"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...

[Left Field]

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

[Shareguy]

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.

[Teitei]

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.

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.

[bulltrap]

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.

[Teitei]

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.

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!

[Shareguy]

Yes. I think a good chance of a cap raise. Will watch with interest.

[Shareguy]

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!

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?