Comvita forecasts 35% boost to annual earnings, farewells CEO Brett Hewlett
The company's forecast earnings growth accelerates from its record profit of $10.2m in the year ended March 31, 2015 it reported in May.
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Comvita [NZX: CVT], the maker of health products based on manuka honey, has forecast a 35% gain in annual earnings and has signalled the exit of its chief executive Brett Hewlett at its annual shareholders meeting.
The Te Puke-based company's forecast earnings growth accelerates from its record profit of $10.2 million in the year ended March 31, 2015 it reported in May. The company also told shareholders it expects annual revenue to be in excess of $180 million in the coming year, up from $152.7 million.
Mr Hewlett also flagged he will end his decade-long tenure as head of the company next March. He will be invited to join the board in the 12 months following his departure.
Comvita has benefited from a surge in manuka honey prices, based on Asian demand for the honey and its purported health benefits. Almost one-third of Comvita sales come from Asian markets, including 400 stores in the company's core market of China. Now the company has a sales target of $400 million with "sustained earnings growth" by 2020.
The company is looking to control 100% of its raw honey supply through long-term contracts and ownership of apiaries. Comvita raised $24 million last year in a rights issue to repay debt, fund its honey inventory and make further acquisitions after a three-year effort to increase direct ownership of manuka honey supply, including the purchase of Timaru-based New Zealand Honey Producers Cooperative for $12.3 million last July.
Comvita shares rose 4.4% to a record $4.75. That's 80c above its one-for-five rights issue off price of $3.55 per-share last December.
(BusinessDesk)
Suze Metherell
Thu, 23 Jul 2015
Thu, 23 Jul 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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Comvita forecasts 35% boost to annual earnings, farewells CEO Brett Hewlett
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