Comvita announces timely profit boost
Takeover target Comvita has announced a better-than-expected first half profit on rising sales of its honey-based health and beauty products.
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Takeover target Comvita has announced a better-than-expected first half profit on rising sales of its honey-based health and beauty products.
The unaudited net profit after tax of $2.2 million for the six months to September compared to a $2.2 million loss reported for the same period last year.
Sales increased 14% to $41.8 million while operating costs rose just 5% to $19.9 million.
Stripping out unusual items the “normalised” profit was $2.6 million, beating the company's own guidance of $2.2 million.
Comvita is currently the subject of a $2.50-a-share takeover bid from Cerebos New Zealand, owned by global food and beverage company Cerebos, which is in turn 82% owned by Japanese beverage giant Suntory.
Comvita chairman Neil Craig today reiterated his “don’t sell” notice to shareholders, saying the $71.6 million takeover offer undervalues the company by a “considerable margin.”
Comvita announced its first-ever interim dividend of 4c per share, payable on December 16.
Chief executive Brett Hewlett said the result confirmed the company was on track to meet its forecast for the full year of sales in the range of $91 million to $95 million (compared to $82 million in financial year 2011) and “normalised net profit of $7.3 million to $8.2 million ($3.6 million last year).
The company is due to release next Tuesday a target company statement, together with an independent report from Grant Samuel, on the Cerebos bid.
Comvita shares gained 5c to $2.85.
Duncan Bridgeman
Tue, 15 Nov 2011
Tue, 15 Nov 2011
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Comvita announces timely profit boost
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