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Ticker: CVT
Website: www.comvita.com
<http://www.comvita.com/>
CEO: Brett Hewlett
Chairman: Neil Craig
Annual meeting date: TBC - approximately April 2007
Shares.net.nz comment
Comvita is one of the success stories of the NZAX
market, having listed as one of the first eleven the
company has shown steady share price appreciation having
moved from $1.20 Nov 2002 to $3.20 current. Over this
period CVT has built up a strong brand awareness which
has enabled gross margin to be maintained.
Comvita has exposure to the $kiwi but any positives from
a lower $kiwi are not expected to flow through until
2007.
Comvita will end up owning 10% of Derma Sciences once
the warrants are exercised, Derma Sciences will assist
Comvita's entry into the US wound care market.
CVT is achieving solid growth through a roll out of
stores into China, Taiwan, the UK and Europe. The
company is looking to solid growth over the next 3-4
years as evidenced by the CEO's tatement
Chief executive Brett Hewlett's presented to
shareholders a vision that projected continued growth
and increasing control over distribution channels
through to 2010.
Hewlett says his vision, targeting $100 million of sales
revenue (up from the $31.3 million in 2005), is firmly
backed by strong growth in the nutritional healthcare
market, increased investment in research and development
by Comvita and further global acquisitions. He saw
Comvita having a minimum of 25% of its revenue in
non-bee products by that date.
Technical comment
From Jan 2004 to March 2006 the share price had four
attempts to break the $2.60 mark; since this mark has
been broken the price has moved up strongly to current
levels. $2.60 now becomes a upport level.
Financial forecasts
As Comvita continues to grow and if sales targets can be
achieved some pe expansion could occur.
Company comments on its latest result
Comvita achieved strong growth in all offshore markets
during the 05/06 year with export revenue at 60% of
total sales, now larger than domestic revenue for the
first time.
The company's offshore growth has been spurred by a
planned strategy to take greater control of its
distribution channels. As part of this strategy, on
December 1, 2005, Comvita purchased its UK distributor
(NZ Natural Foods) in order to increase its presence in
the UK and launch in a very controlled manner into
certain European markets. In China and Taiwan, Comvita
has made
strong progress with the rollout of 20 Comvita-branded
retail stores. These stores have been funded by local
distributors, however all marketing is controlled by
Comvita.
Latest financial result (full year)
Audited figures for the year to December 31, 2005
(Released 3 March, 2006 - figures in $NZ'000)
This year
Previous
year
Change
Total Operating Revenue
31,319
27,584
+13%
Pretax surplus/(deficit)
2,602
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