CVT-Comvita

[winner (n)]

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?

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.

[Stockgathering]

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.

[winner (n)]

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.

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?

[Stockgathering]

Not impressed, on the positive 2 directors purchased some shares last financial year and none of them sold any.

[Shareguy]

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.

[Hectorplains]

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. 

[BlackPeter]

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. 

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 ...

[Basil]

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

 

[Hectorplains]

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 ...

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?

[Shareguy]

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.

[winner (n)]

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/

[Shareguy]

https://www.newshub.co.nz/home/money/2022/10/new-zealand-m-nuka-honey-experiences-boom-in-demand-in-europe.amp.html

[winner (n)]

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

[Basil]

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...

[Shareguy]

To many better opportunities. I'm no longer a holder.