Comvita Limited · NZX:CVT
Comvita — H1 FY2013 Earnings Presentation
30 slides from Comvita's earnings presentation, Nov 21, 2012
Slide 1: Building a global community
Building a global community
Slide 2: 2013 Half Year Update
2013 HALF YEAR UPDATE Comvita announces solid half year result: 6 MONTHS ENDED 6 MONTHS ENDED 30 SEPT 2012 30 SEPT 2011 NZ$000’S NZ$000’S Sales $45,434 $41,798 EBITDA* $5,314 $6,134 NPAT** $2,386 $2,578 Earnings per share 8.39 cents 9.14 cents Interim Dividend per share 4 cents 4 cents (Fully Impute
Slide 3: Achievements – 2013 Half Year
ACHIEVEMENTS – 2013 HALF YEAR • Group sales grew by 8%, during the historically quieter half of the fiscal year. • Passed the $100 million in annual sales milestone at the end of June 2012. • Another USD$1m Medihoney™ Milestone capital payment triggered. SUPPLY SCIENCE AND CHAIN ASIA RESEARCH • Acqu
Slide 4: Reaping Rewards and Meeting Guidance
REAPING REWARDS AND MEETING GUIDANCE Comvita announces record earnings for the year to 31 March 2012: YEAR ENDED YEAR ENDED 31 March 2012 31 March 2011 NZ$000’s NZ$000’s Sales $95,928 $82,009 17% EBITDA* $15,482 $6,321 145% NPAT** $8,224 $503 ROCE*** 14.4% 4.3% Earnings per share 29.10 cents 1.82 ce
Slide 5: Financial Performance - 2012
FINANCIAL PERFORMANCE - 2012 * 12 months ended 31 March 2008. Unaudited management accounts. Company changed from a December year end to a March year end. ** E BITDAF - Earnings before interest, tax, depreciation, amortisation, impairments and fair value movements of financial instruments and biolog
Slide 6: Achievements - 2012
ACHIEVEMENTS - 2012 • Group sales grew by 17% • Successful defense of unwelcome takeover bid • Globally, MedihoneyTM sales growing by approximately 38% p.a • Normalised, Net Earnings (NPAT) grew by 136%. SUPPLY ASIA AUSTRALIA AND SCIENCE AND CHAIN NEW ZEALAND RESEARCH • New, state-of-the- • Hong Kon
Slide 7: Sales by Market and Category - 2012
SALES BY MARKET AND CATEGORY - 2012 7
Slide 8: Outlook at Year End 2012
OUTLOOK AT YEAR END 2012 • Continued strategic focus on optimising profitability by leveraging higher margin sales growth • Improve operational efficiencies throughout the business • Further development of the Manuka planting breeding programme; research and development to optimise Manuka strains to
Slide 9: Evolving Our Business - 2012
EVOLVING OUR BUSINESS - 2012 9
Slide 10: Evolving Our Business - 2012
EVOLVING OUR BUSINESS - 2012 2012 2005 Sales $96m $31m Gross Margin% 56% 34% EBITDAF $15.4m $4.1m Assets $115m $50m Employees 351 140 % Sales Export 80% 60% % Sales via distributors 10% 85% % Sales Honey 48% 65% % Sales B2C 28% 3% - ( %(!!! -- % --- # & 10
Slide 11: Well Positioned in High Growth Sectors
WELL POSITIONED IN HIGH GROWTH SECTORS • Global dietary supplements market estimated USD$190 billion p.a. • Natural skincare & personal care industry growing 19% p.a. • <2% of UK consumers said they would cut back on healthcare products if forced to(3) • 87% of customers who view a company as a good
Slide 12: Product Lines
PRODUCT LINES Comvita manufactures, markets and distributes natural health and beauty products across four key broad market segments. 1, 100< %#* +## ($# 12 312012) 12
Slide 13: Value Added
VALUE ADDED Generic Comvita branded health honey Medical Skincare *$5 $11 $52 $165 $250 * Retail Selling Price per 250g equivalent of raw honey 13
Slide 14: The Comvita Business Model
THE COMVITA BUSINESS MODEL Comvita is a vertically integrated provider of natural health and beauty products with established global distribution channels Key Value Drivers 14
Slide 15: Manuka Honey
MANUKA HONEY • The worlds largest processor of manuka honey • 5,000 hive specialist medical honey producer • > 30,000 hives under contract or direct control • New high-tech honey extraction facility • Manuka planting and land development programmes • Plant breeding programme and agronomics research
Slide 16: Olive Leaf
OLIVE LEAF • 580,000 olive trees on 157 ha plantation • Plant variety selection and screening programme • Only totally integrated manufacturer • – “fresh picked” 16
Slide 17: Specialist Manufacturing
SPECIALIST MANUFACTURING • Ethanol and water extraction for bio-actives • Honey processing, liquid formulations and packing • Exclusive third-party relationships 17
Slide 18: Research
RESEARCH • FDA and CE approved Class II Medical devices • A total of 41 patents or patents pending relating to 11 different unique innovations in wound care applications • Global distribution via US wound care company 18
Slide 19: Research
RESEARCH • Circa $2.6m p.a. in research and development • Isolation and identification of lead bioactive • Compounds • Clinical trials • New product development • Regulatory approvals for health claims • Plant breeding programmes • Field agronomic trials • Processing methodologies and optimisation •
Slide 20: 'Consumer Needs' Product Design
‘CONSUMER NEEDS’ PRODUCT DESIGN • Winner of multiple awards, local and international • Price premium, value add • Typical 20-50% price premium over nearest competitor • Gross margins superior to industry norms • Focused and differentiated ingredient platform • Manuka honey, bee products, olive leaf
Slide 21: Product Offer
PRODUCT OFFER • Large scope to further broaden product offering • Foods, Healthcare, Personal Care, Medical • Very large global natural products sector • Asian focus • Global trends support growth • Ageing populations • Growing preference to self medicate • Increased incidence of degenerative diseas
Slide 22: Diversity of Channels a Real Strength
DIVERSITY OF CHANNELS A REAL STRENGTH • Established wholesale business in UK, Australia, NZ • Asia 90% direct to consumers • 400 branded retail locations in China, • 54 in HK, 12 in Taiwan, 8 in Korea • Web sales – large scale investment in past 12 Months • Medical products via specialist distributo
Slide 23: Our Story So Far
Comvinsy OUR STORY SO FAR Through innovation, strategic aquisitions and continued Today we are well positioned to reap the returns invesment into our supply chain, Comvita has been on a steady of a rapidly growing health industry. journey towards becoming a truely global natural health brand. a » *
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Slide 25: Comvita
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Slide 26: Comvita
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Slide 28: Comvita
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Slide 29: Comvita products
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Slide 30: Medihoney and skincare products
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