Comvita Limited · NZX:CVT
Comvita — Investor Presentation (2013)
28 slides from Comvita's investor presentation, 2013
Slide 1: Comvita Limited Investor Presentation 2013
COMVITA LIMITED INVESTOR PRESENTATION 2013 Neil Craig, Chairman, Ph. 021 731 509 Brett Hewlett, Chief Executive Officer, Ph. 021 740 160 KEEPING YOU WELL. EVERY DAY.
Slide 2: Comvita results at upper end of guidance
Comvita results at upper end of guidance Financial results for 2013 2012 Change the year to 31 March $M $M % Revenue $103.5 96.0 7.8% EBITDA* $14.7 15.5 (5.2%) Net profit after tax $7.4 8.2 (9.8%) Earnings per share (cents) 25.7 29.1 (11.7%) Dividends (cents) 13.0 14.0 (7.1%) *EBITDA: Earnings Before
Slide 3: Financial performance
Financial performance Group Revenue EBITDA** $103m $15.5m $14.7m $96m $85m $82m $11.2m $71m $65m* $6.3m $5.3m $39m $4.8m $31m $4.1m $0.4m* 2005 2006 2008 2009 2010 2011 2012 2013 2005 2006 2008 2009 2010 2011 2012 2013 * 15 month period, due to change in balance date. ** EBITDA – Earnings before int
Slide 4: Achievements
Achievements • Group sales grew by 8%. • Strong growth in Hong Kong, China, Korea • Assertive pricing and continued strong demand underpins premium brand position in Asian markets • Increased share of Manuka honey supply under direct ownership, through Apiary aquisition • Investment in Fresh Olive L
Slide 5: Sales by Region
Sales by Region $45.3m ASIA $24.5m AUSTRALIA $21.2m NEW ZEALAND $6.4m UK/EUROPE $6.1m NORTH AMERICA 5 KEEPING YOU WELL. EVERY DAY.
Slide 6: Sales by Category
Sales by Category 42% HEALTHCARE 48% FUNCTIONAL FOODS 5% PERSONAL CARE 4% MEDICAL 1% OTHER 6 KEEPING YOU WELL. EVERY DAY.
Slide 7: Outlook
Outlook • Restored earnings growth • Continued strong growth in key Asian markets • Online and retail sales developments • Continued efforts for security of supply for Manuka Honey • Opening of Comvita Tourism Experience, Bay of Plenty • Growing greater capacity for fresh Olive Leaf Extract • Furthe
Slide 8: Evolving Our Business
Evolving Our Business 2013 2005 Sales $103m $31m Gross Margin% 56% 34% EBITDA $14.7m $4.1m Assets $137m $50m Employees 395 140 % Sales Export 80% 60% % Sales via Distributors 16% 85% % Sales Honey 47% 65% % Sales B2C 26% 3% 8 KEEPING YOU WELL. EVERY DAY.
Slide 9: Market segments
Market segments Manufactures, markets and distributes natural health and beauty products across four key broad market segments 42% 48% 5% 4% HEALTHCARE FUNCTIONAL FOODS PERSONAL CARE MEDICAL Variety of healthcare products Worlds largest manufacturer and Comprises home-based Medical-grade leptospermu
Slide 10: Value Added
Value Added Generic Comvita branded health honey Medical Skincare $5* $14 $104 $330 $500 * Retail selling price per 250g equivalent of raw Manuka Honey 10 KEEPING YOU WELL. EVERY DAY.
Slide 11: The Comvita Value Model
Gown; The Comvita VALUE MODEL ere dd pale ee se PRODUCTS We research and select sources of nature's We use science to deeply understand Our brand promises to nourish, protect, Our customers experience life giving ingredients and are careful to nature and our body's own natural restore and revitalise
Slide 12: Manuka Honey
Manuka Honey • The worlds largest processor of Manuka honey • 6,000 hive specialist medical honey producer • >30% of honey supply under Comvita ownership • High-tech medical honey extraction facility • Manuka planting and land development programmes • Plant breeding programme and agronomics 12 KEEPI
Slide 13: Fresh Olive Leaf
Fresh Olive Leaf • 580,000 olive trees on 157 ha plantation • Plant variety selection and screening programme • Acquisition of second olive grove, with 7,000 existing organic olive trees on 85 ha -Plans to plant 400,000 trees in next two years • Only totally integrated manufacturer - ‘Fresh picked’
Slide 14: Specialist Manufacturing
Specialist Manufacturing • World first honey testing capability •UPLC based, in-house laboratory • Ethanol and water extraction for bio-actives • Honey processing, liquid formulations and packing • Exclusive third-party relationships 14 KEEPING YOU WELL. EVERY DAY.
Slide 15: Natural Health Innovators
Natural Health Innovators • FDA approved and CE marked medical devices • A total of 61 patents or patents pending covering 13 different unique innovations in wound care applications • Global distribution via licensing agreement with specialty US wound care company Derma Sciences Inc. • Fresh Olive L
Slide 16: Research
Research • Circa $2.7m p.a. in research and development • Isolation and identification of lead bioactive compounds • Clinical trials • New product development • Regulatory approvals for health claims • Development of tests for honey quality and authenticity • Plant breeding programmes • Field agrono
Slide 17: Building a Premium Global Brand
Building a Premium Global Brand • Brand reputation in Asia allows significant price premium over nearest competitors • Brand offer on focussed, differentiated ingredient platforms • Brand story has great level of meaning with customers • Source and efficacy of product range • Growth and awareness op
Slide 18: Consumer Needs Focused Design
Consumer Needs Focused Design • 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 dege
Slide 19: Diversity and Reach of Direct Channels a Real Strength
Diversity and Reach of Direct Channels a Real Strength • Established wholesale business in UK, Australia, NZ • Asia 90% direct to consumers • 35 dedicated stores and a total of 400 branded retail locations in China • 82 Comvita retail locations, 54 in Hong Kong, 12 in Taiwan, 12 in Korea, 2 in UK an
Slide 20: Auckland Concept Store
Auckland Concept Store 20 KEEPING YOU WELL. EVERY DAY.
Slide 21: Keeping You Well. Every Day.
21 KEEPING YOU WELL. EVERY DAY.
Slide 22: Manuka Honey
Manuka Honey 22 KEEPING YOU WELL. EVERY DAY.
Slide 23: Royal Jelly
Royal Jelly 23 KEEPING YOU WELL. EVERY DAY.
Slide 24: Winter Wellness
Winter Wellness 24 KEEPING YOU WELL. EVERY DAY.
Slide 25: Fresh Olive Leaf Complex
Fresh Olive Leaf Complex 25 KEEPING YOU WELL. EVERY DAY.
Slide 26: Skin Care
Skin Care 26 KEEPING YOU WELL. EVERY DAY.
Slide 27: Medihoney
Medihoney 27 KEEPING YOU WELL. EVERY DAY.
Slide 28: Questions
Questions 28 KEEPING YOU WELL. EVERY DAY.