Comvita upgrades earnings on back of strong result

For the six month period ending 30 September 2015, Comvita recorded an after tax profit of $3.0 million on sales of $91.1 million. This compares with an after tax loss of $3.3 million on sales of $59.7 million in the corresponding period in the 2015 financial year.

Comvita will pay a $0.06 per share fully imputed interim dividend on 27 November 2015 for those shares registered on 20 November 2015. This compares to $0.04 per share in the corresponding period in 2014.

Chairman Neil Craig says, "At our Annual Meeting on 23 July 2015, we advised the market that our earnings would be at least 35% in excess of the full year ended 31 March 2015. With the strong result for the first six months we now expect our operating profit after tax to be in the range of $15-17 million, up 46% to 65% for 12 months to 31 March 2016, compared to the prior year."

In further support of the current strong ‘tailwind’ for the business, recently appointed CEO Scott Coulter, explained that, "Sales have been driven by very strong growth in all markets on the back of strategic investment in supply security, better channel management and growth in sales of the Winter Wellness and fresh Olive Leaf categories."

"We are confident that, leveraging our premium brand position, our strong path to market and our continued focus on optimising profitability across all facets of the company, should result in the company continuing to deliver sustainable earnings growth into the future."

Mr Coulter also adds, "Comvita has recently completed a five year strategic review, reinforcing our commitment to a strong focus of optimising returns from individual markets and product ranges, increasing activity in the strategic ownership of raw material inventory, and building on our innovation pipeline."

"The recent strategic investment in listed company SeaDragon as announced to the market on

2 October 2015, will provide sustainable New Zealand sourced Omega 3 fish oils. Omega 3 is a very significant business opportunity globally and we see it as a platform ingredient that Comvita will be able to use across a range of value added products into the future."

Comvita will take an active interest in the business of SeaDragon with Brett Hewlett, our retiring CEO, joining the Board on 2 November 2015.