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Comvita Announces Public Offering

News Release
February 27, 2004

Comvita Announces Public Offering

NZAX listed natural health products company, Comvita Limited, today announced an up-coming subsequent public offering of $7.5 million.

Comvita chairman Bill Bracks, says the offer will give the company working capital and the balance sheet strength to develop warehouse and other facilities, develop its medical honey business and consider further acquisitions.

“While the interests of existing holders will be looked after via a priority pool, the offer will also be used to broaden the company’s shareholder base to at least the 500 minimum requirement for NZSX listed companies,” says Bracks. “Comvita currently has a shareholder base of 220.”

The offer, which is being managed by ABN AMRO Craigs, is expected to be carried out in April. An investment statement relating to the offer is expected to be announced next month.

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Another Sweet Result for Comvita

News Release
February 27, 2004

Another Sweet Result For Comvita

Comvita Limited has reported a 60 per cent increase in after tax profit for the year ended December 31, 2003 and a final dividend of two cents per share for its shareholders.

The fully imputed final dividend payment of 2cps brings the total dividend for 2003 to 4.19 cps. Earnings per share at 12.5 cps were 23 per cent up on the previous 12-month period. 

Comvita chairman Bill Bracks, who was awarded a New Zealand Order of Merit for services to industry in the New Year honours list, says 2003 was a tumultuous year characterised by a number of major events ranging from the SARS epidemic to the successful acquisition of Bee & Herbal Limited and Apimed Medical Honey Limited.

“Despite this, Comvita still delivered a profit of $1.146 million in line with expectations,” he says.

Bracks says the largest honey crop in New Zealand’s history, successful management of Varroa mite, huge exchange rate fluctuations, the introduction of new sophisticated management practices for the production of medical honey plus launching on the AX have underscored the company’s ability to cope with the highs and lows of a changing environment without losing focus and still bring in a successful result.

“The Comvita Group 2003 gross revenues grew by 21.5 per cent with NPAT growing by a comfortable 60.5 per cent and dividend growth 16.7 per cent,” Bracks adds.

“Export markets in Europe, Hong Kong and Japan have performed well in spite of very high retail manuka honey prices flowing from supply shortfalls in 2002.  Given the operating environment this is a very satisfactory outcome with a sound base for further growth evolving from the Apimed purchase and development of wound dressings made with medical grade manuka honey.”

Bracks concludes while product development remains an important driver of growth, Comvita’s principal growth strategy is to shift from being an exporter to an international marketer of natural health products and health solutions. 

“To this end we have recruited a top line senior and middle management team with the experience and vision necessary to achieve this goal.”

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For further information contact: Bill Bracks 021-386-974
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Comvita Takes Remaining 50% of Api-Med

December 24, 2003

Comvita Takes Remaining 50% Of Medical Honey Company Api-Med

AX-listed natural health products company Comvita announced today it has bought all the remaining shares in Cambridge-based Api-Med Medical Honey Limited.

One of Api-Med’s UK customers recently received the European CE mark certification for its wound dressing products that will allow manuka honey dressings to be marketed directly to hospitals and clinics.
 
Comvita Chairman Bill Bracks in announcing full acquisition of Api-Med Honey Limited says the original 50% shareholding purchased in September was largely undertaken to secure the intellectual property for manufacturing wound dressings that are infused with high UMF manuka honey.

“The purchase of the remaining 50% of the company is a practical move that allows Comvita to add value to the company through entering new ethical medical markets where New Zealand’s indigenous manuka honey has been embraced as a leading edge method of treating wounds and serious ulcers.  It is a major step for the company by taking a position at the medical end of the health continuum.

Comvita’s chief executive Graeme Boyd says the use of honey products in medical situations opens exciting new market potential for Comvita and New Zealand plus opening new economic opportunities for beekeepers and landowners. 

Boyd says uses such as wound dressings add value to a natural resource and offer huge growth potential in international markets.

Api-Med is involved in clinical trials with the Auckland University’s Clinical Trials Unit beginning in January. 

Graeme Boyd says there is a large body of research now available on the antibacterial activity of manuka honey and of its rapid healing characteristics, spearheaded by Dr Peter Molan of Waikato University. 

He says the clinical trials will provide the final level of certainty needed to take the products in to the medical field.

“We have long recognised there is solid revenue potential in the medical area for natural products companies that have strong research capabilities.  We have been steadily working toward that goal of entering that market.”

The Api-Med purchase is in line with the strategic focus of Comvita to be a leading player in wellness products through a genuine and resourced innovation programme.  The purchase and clinical trials are part of a planned process of growth for the company.

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