Comvita announces a strong Half Year result

23 February 2018


Comvita announces a strong Half Year result

For the six-month period ending 31 December 2017, Comvita (NZX:CVT) has achieved a Net Profit After Tax (NPAT) of
$3.7m, on sales of $83.6m. This compares to an after-tax loss of $7.1m, for the same period last year.

Comvita Chairman Neil Craig says, “We are very pleased with a return to profitability in the first half, marking a
turnaround of $10.8m when compared to the first half of FY17. Adjusting our NPAT for non-operating items, this results
in an after tax operating profit of $4.0m.”

Financial results for the period six months to 31 December 2017 (six months to 31 December 2016)

2017 2016
Sales $83.6m $57.7m
EBITDA* $9.9m ($2.8m)
EBITDA% 12% (5%)
NPAT $3.7m ($7.1m)
NPAT attributed to non-operating items** ($0.3m) ($2.8m)
NPAT excluding non-operating items $4.0m ($4.4m)
Earnings per share (cents) 8.31 (17.18)
Dividends per share (cents) 4.0 2.0

* EBITDA: earnings before interest, tax, depreciation and amortisation.
**The non-operating item is the revaluation of Comvita’s options in SeaDragon (NZX:SEA).

Dividend
With the return to after tax operating profit, shareholders will receive a fully imputed interim dividend for the 2018 year
of 4.0 cents per share. This is in line with our guidance to the market at our Full Year announcement where we signaled
a resumption of dividends after our six-month result to 31 December 2017. We will pay the dividend on 23 March 2018
for those shares registered 16 March 2018.

China Joint Venture
“Our China Joint Venture, Comvita Food (China) Ltd., is performing ahead of expectations from a profitability
perspective. Chinese customer insights show our brand position within China remains very strong. We are very pleased
with progress to date” says Mr. Craig.

Comvita CEO Scott Coulter says, “Comvita’s total sales were up 45% on the prior period, driven by sales to North
America, which reached $19.6m for the half year period compared to $1.6m on the prior period and meets our strategic
objective of market diversification.”

“Grey channel sales into China from New Zealand and Australia are up 45% compared to the first half of FY17. We are
pleased to see this improvement, albeit more slowly than anticipated at this stage of the year.”

Mr. Coulter says, “We remain optimistic that the rebound of sales through the grey channel will continue. The Ministry
for Primary Industries’ (MPI) new definition for Manuka honey has created some uncertainty for customers and our
sales projections in the short term, but we believe these regulatory changes are very positive for Comvita, and will open
up a significant number of growth opportunities globally,” says Mr. Coulter.

On 30 January 2018, Comvita announced the 2017-18 honey season was looking favourable so far, with generally good
weather conditions throughout December and into January, which contributed to a positive start to the harvest. Mr.
Coulter says, “Since that announcement, the weather has not been supportive to honey production, and we are now
expecting honey crop volumes to be slightly below that of an average year.”

“To balance this, our Kiwi Bee apiary business has been targeting high value Manuka honey crops, and has successfully
secured a number of excellent locations which we believe will yield a higher than average value honey crop than
previous years. It is still too early to be definitive on both honey volumes and quality of the crop at this stage of the
harvest as only 20% of the 2017-18 crop has been harvested to date. We will update the market on the harvest once
extraction of the honey from the hive and testing is completed in May.”

Outlook
On 30 January 2018, Comvita upgraded its guidance to the market to a Full Year NPAT of greater than $17.1m. This was
based on the assumption of a normal 2017-18 honey production season and a solid recovery of the grey channel.

The Comvita Board remains confident in the Full Year outlook of an operating NPAT greater than $17.1m, subject to
confirmation of apiary profitability in May 2018 and continued recovery of the grey channel from New Zealand and
Australia into China.

Ends


For further information:
Comvita Chairman, Neil Craig, 021 731 509.
Comvita CEO, Scott Coulter, 021 386 988.
Comvita Communications Manager, Julie Chadwick, 021 510 693.


About Comvita (www.comvita.co.nz)
Comvita (NZX:CVT) is a global natural health company committed to the development of innovative products, backed by ongoing
investment in scientific research.

---

Comvita Limited (CVT)

Results for announcement to the market

Reporting Period 6 months to 31 December 2017
Previous Reporting Period 6 months to 31 December 2016


Amount
(NZD’000)
Amount
(NZD’000)
Percentage
change
2017 2016
Revenue from ordinary activities $83,561 $57,730 45%
Profit/(Loss) from ordinary
activities after tax attributable to
security holder
$3,729 ($7,109) 152%
Net Profit/(Loss) attributable to
security holders
$3,729 ($7,109) 152%

Interim Dividend Amount per security Imputed amount per
security
$0.04 $0.04

Record Date 16 March 2018
Dividend Payment Date 23 March 2018



Comments A brief Please refer to profit announcement above
and attachments for commentary.



Attachments:
• Condensed interim financial statements
• Investor presentation
• Appendix 7 notice of event effecting securities - Dividend

---

FOR THE 6 MONTHS ENDED
31 DECEMBER 2017
COMVITA LIMITED AND GROUP
FINANCIAL
STATEMENTS
CONDENSED INTERIM

Comvita Condensed Interim Financial Statements 2018 - P1
CONTENTS
DIRECTORS’ DECL A R ATION
CONDENSED INTERIM INCOME STATEMENT
CONDENSED INTERIM STATEMENT OF
COMPREHENSIVE INCOME
CONDENSED INTERIM STATEMENT OF
CHANGES IN EQUITY
CONDENSED INTERIM STATEMENT OF
FINANCIAL POSITION
CONDENSED INTERIM STATEMENT OF
CASH FLOWS
NOTES TO THE INTERIM FINANCIAL
STATEMENTS
DIRECTORY
2
3
4

5

6

7

8 —16

17—18

Comvita Condensed Interim Financial Statements 2018 - P2Comvita Condensed Interim Financial Statements 2018 - P3
In the opinion of the directors of Comvita Limited, the interim financial statements
and the notes, on pages 3 to 16:
• comply with New Zealand generally accepted accounting practice and fairly
state the financial position of the Group as at 31 December 2017 and the results
of their operations and cash flows for the period ended on that date
• have been prepared using appropriate accounting policies, which have been
consistently applied and supported by reasonable judgements and estimates
The directors believe that proper accounting records have been kept which
enable, with reasonable accuracy, the determination of the financial position
of the Group and facilitate compliance of the financial statements with the
Financial Reporting Act 2013 and the Financial Markets Conduct Act 2013.
The directors consider that they have taken adequate steps to safeguard the assets
of the Group, and to prevent and detect fraud and other irregularities. Internal
control procedures are also considered to be sufficient to provide reasonable
assurance as to the integrity and reliability of the financial statements.
The directors are pleased to present the financial report, incorporating the financial
statements of Comvita Limited for the period ended 31 December 2017.
For and on behalf of the Board of Directors:
DIRECTORS’ DECL A R ATION
INCOME STATEMENT


Neil Craig Luke Bunt
22 February 2018 22 February 2018
For the 6 months ended 31 December 2017
In thousands of New Zealand dollars
Note
31 December
2017
Unaudited
31 December
2016
Unaudited
Revenue
83,561
57,730
Cost of sales
(47,765)
(32,114)
Gross profit
35,796
25,616
Other income
650
210
Selling and marketing expenses
(17,983)
(16,818)
Distribution expenses
(3,945)
(2,733)
Research and development expenses
(1,776)
(1,689)
Administrative expenses
( 7,615)
(8,217)
Operating profit/(loss) before financing costs
5,127
(3,631)
Finance income
5794
621
Finance expenses
5(2,160)
(5,136)
Net finance costs
(1,366)
(4,515)
Share of profit/(loss) of equity accounted investees
9b1,114
(352)
Profit/(loss) before income tax
4,875
(8,498)
Income tax (expense)/benefit
6(1,146)
1,389
Profit/(loss) for the period
3,729
(7,109)
Earnings per share:
Basic earnings per share (NZ cents)
78.31(17.18)
Diluted earnings per share (NZ cents)
77.91(17.18)
The notes on pages 8 to 16 are an integral part of these condensed interim financial statements.
Condensed interim

Comvita Condensed Interim Financial Statements 2018 - P4Comvita Condensed Interim Financial Statements 2018 - P5
For the 6 months ended 31 December 2017
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
Profit/(loss) for the period
3,729(7,109)
Items that are or may be reclassified subsequently to the
income statement
Foreign currency translation differences for foreign operations
2,936(969)
Effective portion of changes in fair value of cash flow hedges
(1,086)
1,024
Net change in fair value of available-for-sale financial assets
-
2,130
Foreign investor tax credits received
-
12
Income tax on income and expense recognised directly in other
comprehensive income
(518)(105)
Income and expense recognised directly in other comprehensive
income
1,3322,092
Total comprehensive income/(loss) for the period
5,061(5,017)
The notes on pages 8 to 16 are an integral part of these condensed interim financial statements.
COMPREHENSIVE INCOME
Condensed interim statement of
CHANGES IN EQUITY
Condensed interim statement of
For the 6 months ended 31 December 2017
Unaudited
In thousands of New Zealand dollars
Share
capital
Foreign
currency
translation
reserve
Hedging
reserve
Fair value
reserve
Retained
earningsTotal
Balance at 1 July 201697,181(3,566)(1,435)-39,659131,839
Total comprehensive income for the period
Loss after tax for the period----(7,109)(7,109)
Other comprehensive income (net of tax)
Foreign investor tax credits received----1212
Foreign currency translation differences for
foreign operations
-(698)---(698)
Effective portion of changes in fair value of
cash flow hedges
--737--737
Net change in fair value of available-for-sale
financial assets
---2,041-2,041
Total other comprehensive income for the
period
-(698)7372,041122,092
Total comprehensive income for the period-(698)7372,041(7,097)(5,017)
Transactions with owners, recorded directly in equity
Share based payments----190190
Issue of treasury stock613---1,3321,945
Issue of ordinary shares:
- executive share scheme1,729----1,729
- staff share scheme7----7
- private placement21,200----21,200
Issue expenses related to issuing shares(31)----(31)
Dividend paid
----(829)(829)
Total transactions with owners23,518---69324,211
Balance at 31 December 2016120,699(4,264)(698)2,04133,255151,033
Balance at 1 July 2017120,155(3,894)(1,087)-48,701163,875
Total comprehensive income for the period
Profit after tax for the period----3,7293,729
Other comprehensive income (net of tax)
Foreign currency translation differences for
foreign operations
-2,114---2,114
Effective portion of changes in fair value of
cash flow hedges
--(782)--(782)
Total other comprehensive income for the
period
-2,114(782)--1,332
Total comprehensive income for the period-2,114(782)-3,7295,061
Transactions with owners, recorded directly in equity
Share based payments----365365
Supplier share scheme52---4597
Issue of ordinary shares:
- executive share scheme1,064----1,064
- staff share scheme2----2
- acquisition (note 9b)16,414----16,414
Issue expenses related to issuing shares(28)----(28)
Total transactions with owners17,504---41017,914
Balance at 31 December 2017137,659(1,780)(1,869)-52,840186,850
The notes on pages 8 to 16 are an integral part of these condensed interim financial statements.

Comvita Condensed Interim Financial Statements 2018 - P6Comvita Condensed Interim Financial Statements 2018 - P7
CASH FLOWS
FINANCIAL POSITION
The notes on pages 8 to 16 are an integral part of these condensed interim financial statements.
For the 6 months ended 31 December 2017
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
Note
Receipts from customers
78,37753,284
Payments to suppliers and employees
(92,118)(57,609)
Interest received
94171
Interest paid
(1,863)(2,330)
Taxation paid
(1,899)(3,693)
Net cash flows from operating activities
13(17,409)(10,177)
Payment for loans to related parties
(87)-
Payment for investment in equity accounted investee
-(2,507)
Payment for loans to equity accounted investee
(2,168)(5 ,674)
Payment for the acquisition of property, plant and equipment
(2,298)(1,992)
Receipt from disposal of property, plant and equipment
612239
Receipt of profit from equity accounted investee
256142
Payment for the acquisition of intangibles
(490)(396)
Net cash flows from investing activities
(4,175)(10,188)
Proceeds from the issue of shares
1,04422,936
Payment for share capital issue expenses
(6)(31)
Payment of dividend
-(829)
Drawdown/(repayment) of loans and borrowings
20,800(150)
Net cash flows from financing activities
21,83821,926
Net increase in cash and cash equivalents
2541,561
Cash and cash equivalents at the beginning of the period
4,5722 ,780
Effect of exchange rate fluctuations on cash held
105(76)
Cash and cash equivalents at the end of the period
124,9314,265
Condensed interim statement of
As at 31 December 2017
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
30 June
2017
Audited
Note
Assets
Property, plant and equipment46,55447,2 9 646,206
Biological assets4,2753,8094,245
Intangible assets and goodwill34,08040,60034,051
Investments in equity accounted investees
9b
31,31011,40014,15 5
Available-for-sale financial assets-8,220-
Other investments
888
Deferred tax asset3,1111,0632,149
Total non-current assets119,338112,396100,814
Inventory
11
98,6439 7,2 288 7,856
Trade receivables50,28321,96944,013
Sundry receivables
8
20,58516,92115,708
Cash and cash equivalents
12
4,9314,2654,572
Derivatives
10
9683,6022,331
Tax receivable1,8773 ,7 171,398
Total current assets177,287147,702155,878
Total assets296,625260,098256,692
Equity
Issued capital13 7,65 9120,699120,15 5
Retained earnings52,84033,2554 8,701
Reserves
(3,649)
(2,92 1)(4 ,9 8 1)
Total equity186,850151,033163,875
Liabilities
Loans and borrowings
12
87,30086,65066,500
Deferred tax liabilities-23-
Employee benefits
388
387356
Total non-current liabilities87,68887,06066,856
Trade and other payables14,68312,36819,088
Employee benefits3,3673,4404,002
Deferred revenue-3,338-
Ta x p ayab le1,442191246
Derivatives
102,595
2,6682,625
Total current liabilities22,08722,00525,961
Total liabilities109,775109,06592,817
Total equity and liabilities296,625260,098256,692
The notes on pages 8 to 16 are an integral part of these condensed interim financial statements.
Condensed interim statement of

Comvita Condensed Interim Financial Statements 2018 - P8Comvita Condensed Interim Financial Statements 2018 - P9
1. REPORTING ENTITY
Comvita Limited (the “Company”) is a company domiciled in
New Zealand, and registered under the Companies Act 1993 and
listed on the New Zealand Stock Exchange (“NZX”). The Company is
an issuer in terms of the Financial Reporting Act 2013 and Financial
Markets Conduct Act 2013.
The condensed interim financial statements of the Group for the six
months ended 31 December 2017 comprise the Company and its
subsidiaries (together referred to as the “Group”) and the Group’s
interest in equity accounted investees.
The principal activity of the Group is that of manufacturing and
marketing quality natural health products and apiary ownership
and management.
2. BASIS OF PREPARATION
(a) Statement of compliance
The Company is a FMC reporting entity for the purposes of the
Financial Reporting Act 2013 and the Financial Markets Conduct Act
2013. These Financial Statements comply with these Acts and have
been prepared in accordance with the New Zealand Equivalents to
International Financial Reporting Standards as appropriate for
profit-oriented entities.
The condensed interim financial statements do not include all of the
information required for full annual financial statements and should
be read in conjunction with the group financial statements as at and
for the year ended 30 June 2017.
The condensed interim financial statements were approved by the
Board of Directors on 22 February 2018.
(b) Basis of measurement
The financial statements have been prepared on the historical
cost basis except for derivative financial instruments, financial
instruments classified as available-for-sale and biological assets
which are measured at fair value. Fair values have been determined
for measurement and/or disclosure purposes on the same basis as
those applied by the Group in the financial statements as at and for
the year ended 30 June 2017.
(c) Functional and presentation currency
These financial statements are presented in New Zealand dollars ($),
which is the Company’s functional currency. Amounts have been
rounded to the nearest thousand.
(d) Use of estimates and judgements
The preparation of condensed interim financial statements in
accordance with NZ IAS 34 Interim Financial Reporting requires
management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
In preparing these condensed interim financial statements, the
significant judgements made by management in applying the Groups
accounting policies and the key sources of estimation uncertainty
were the same as those applied to the financial statements as at and
for the year ended 30 June 2017.
The accounting policies have been applied consistently
throughout the Group for the purposes of these condensed
interim financial statements.
3. SIGNIFICANT ACCOUNTING
POLICIES
The accounting policies applied in these condensed interim financial
statements are the same as those applied in the Group’s financial
statements as at and for the year ended 30 June 2017.
4. SEGMENT REPORTING
Segment information is presented in the condensed interim financial
statements in respect of the Group’s contribution segments which
are the primary basis of decision making. The contribution segment
reporting format reflects the Group’s management and internal
reporting structure.
Performance is measured based on contribution which is a
measure of profitability that the segment contributes to the Group.
Contribution is used to measure performance as management
believes that such information is most relevant in evaluating the
results of certain segments. Inter-segment pricing is determined on
an arms-length basis.
Each segment sells Comvita’s range of products. Comvita’s range
of products primarily include products with apiary and other
natural ingredients.
Apiary operations are an integral part of our total business and are
represented over all segments.
The Company is organised primarily by geographic location of its
subsidiaries, such as New Zealand, Australia, Asia, Europe and
North America, except for the China segment, which reports on sales
to our Joint Venture and our share of the Joint Venture’s profits.
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
The Group has six reportable segments as described below:
North America
This segment captures both revenue and related costs for sales to
customers in North America.
Asia
This segment captures both revenue and related costs of our Asian
operations and customers. The Asian segment includes Hong Kong,
Taiwan, Japan, Korea and Singapore. It excludes China which is a
seperate segment.
Australia
This segment captures both revenue and related costs for the
Australian domestic market and includes external revenue and costs
from Comvita Australia Pty Limited.

New Zealand
This segment captures both revenue and related costs for the
New Zealand market, excluding exports.
Europe
This segment captures both revenue and related costs for the United
Kingdom and European markets.
China
This segment reports on sales to our China Joint Venture and our
share of the China Joint Venture’s profits.
During the year ended 30 June 2017 there was a change to
segment reporting. China is a new segment and the Medical segment
has been removed. North America is a new segment for the six
months ended 31 December 2017. Comparatives have been restated
to reflect this change.
4. SEGMENT REPORTING (continued)
Contribution segments for the 6 months to 31 December 2017 and 31 December 2016 Unaudited
In thousands of New Zealand dollars
North AmericaAsia AustraliaNew ZealandEuropeChina
Total

reportable
segments
Other Total
2017
2016 201720162017201620172016201720162017
2016


2017
2016

2017201620172016
Sales
19,5531,64516,83016,01116,53512,42115,46512,4094,8753,6583,5623,96576,82050,1096,7417,62183,56157,730
Contribution
8,798421,7772,6563,6071,0865,5634,9065066854135420,7929,1124841,50121,27610,613
Non attributable (other corporate expenses)
Other income
Share of profit/(loss) of equity accounted investees (note 9b)
(16,865)(18,549)
(650)(210)
1,460
-
(346)(352)1,114(352)
Net profit/(loss) before tax
2,0013544,875(8,498)
Total assets
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
30 June
2017
Audited
Total assets for reportable segments134 ,772109,279106,167
Other investments88,2288
Investment in equity accounted investees7,32811,4007,928
Other unallocated assets154,517131,191142,589
Consolidated total assets296,625260,098256,692

Comvita Condensed Interim Financial Statements 2018 - P10Comvita Condensed Interim Financial Statements 2018 - P11
5. FINANCE INCOME AND EXPENSES
In thousands of New Zealand dollars
31 December
2017
31 December
2016
UnauditedUnaudited
Interest income222171
Foreign exchange gain572431
Other-19
Finance income794621
Interest expense on financial liabilities measured at amortised cost(1,863)(2,338)
Net change in fair value of derivatives - SeaDragon options(297)(2,750)
Other-(48)
Finance expenses(2,160)(5,136)
6. INCOME TAX EXPENSE
The current period effective tax rate as reflected in the income tax expense is impacted by a number of factors. Equity earnings are primarily
assessed for tax in the investee, so do not impact the company tax expense.
7. EARNINGS PER SHARE
Basic earnings per share – weighted average number of ordinary shares
In thousands of shares
31 December
2017
31 December
2016
UnauditedUnaudited
Issued ordinary shares at beginning of the period42,00539,581
Effect of shares issued during the period2,8431,791
Weighted average number of ordinary shares at the end of the period44,84841,372
Basic earnings per share (NZ cents)8.31(17.18)
Diluted earnings per share – weighted average number of ordinary shares
In thousands of shares
31 December
2017
31 December
2016
UnauditedUnaudited
Weighted average number of ordinary shares (basic)44,84841,372
Effect of stock entitlements issued2,2801,181
Weighted average number of diluted shares at the end of the period47,12842,553
Diluted earnings per share (NZ cents)7.91(17.18)
The effect of stock entitlements is Nil where the exercise price is higher than the average share price for the year, in accordance with NZ IAS 33
Earnings per share. When there is a net loss the diluted earnings per share cannot be less than the basic earnings per share.
8. SUNDRY RECEIVABLES
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
30 June
2017
Audited
Prepayments5,8924,9224,171
Loans to equity accounted investees (note 9c)10,9289,9488,697
Loan receivable – related parties (note 9d)1,1324721,045
Other receivables 2,6331,5791,795
Total sundry receivables20,58516,92115,708
9. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES
a) Investments in Equity Accounted Investees Comprises:
Country of
Incorporation
Ownership
Interest Held
Balance
Date
Principal
Activity
Extracts NZ Limited (Extracts)
New Zealand
33.3%31 MarchNot trading
Kaimanawa Honey Limited Partnership (Kaimanawa)
New Zealand
50%30 JuneApiary and land
use
Makino Station Limited (Makino)
New Zealand
50%30 JuneApiary and land
ownership
SeaDragon Limited (SeaDragon)
New Zealand
9.1%31 MarchFish oil production
Nga Pi Honey Limited (Nga Pi Honey)
New Zealand
33%30 JuneApiary
Putake Group Holdings Limited (Putake)
New Zealand
50%30 June Apiary
Manuka Research Partnership LimitedNew Zealand31.77 %30 June Research and
development
Medibee Pty Limited (Medibee)Australia50%30 June Apiary
Comvita China, consisting of the two entities:
Comvita Food (China) LimitedChina51%31 December Selling and
distribution
Comvita China LimitedHong Kong51%31 DecemberSelling and
distribution
b) Carrying value of Investments in Equity Accounted Investees
In thousands of New Zealand dollars

31 December
2017
Unaudited
31 December
2016
Unaudited
30 June
2017
Audited
Opening balance – 1 July14,1556,5316,531
Acquisition – Comvita China16,420-6,264
Acquisition – Putake-5,1605,159
Acquisition – Other-203204
Prior year profit distributed this year (262)(142)(142)
Impairment – SeaDragon--(1,235)
Dilution of shareholding – SeaDragon--(623)
Share of profit – Comvita China1,460--
Share of (loss) – Other(346)(352)(2,237)
Intercompany profit elimination – Comvita China(162)--
Transfer share of loss to receivable45-234
Closing Balance31,31011,40014,155
Comvita Food (China) Limited and Comvita China Limited
Prior to 30 June 2017, these legal entities were set up and the Company contributed NZD$6,152,000 cash as share capital. On 3 July 2017, the
formation of Comvita China was completed. The Company issued 2,830,000 shares for consideration of $16,414,000. These shares were issued
into escrow and will be released when all assets are transferred in accordance with the Asset Transfer Agreement. Acquisition related costs of
$6,000 (30 June 2017: $112,000) have been capitalised to the carrying value of the investment.
For the six months ended 31 December 2017, Comvita China had sales of $23,356,000 and net profit after tax of $2,861,000, of which our
51% share is $1,460,000.
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

Comvita Condensed Interim Financial Statements 2018 - P12Comvita Condensed Interim Financial Statements 2018 - P13
9. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES (continued)
c) Loans to equity accounted investees
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
30 June
2017
Audited
Loan receivableNote
Makino 3,2573,0513,282
SeaDragon - convertible note3,0002,0002,000
Medibee 2,5014,6862,438
Kaimanawa1,253-103
Putake665-665
Nga Pi Honey252211209
Total810,9289,9488,697
All loans to equity accounted investees are repayable on demand except convertible notes.
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
30 June
2017
Audited
Interest receivable
Makino 22462200
SeaDragon - convertible note474040
Total271102240
The Group’s interest income from SeaDragon on the convertible notes was $87,000 for the six months to 31 December 2017 (31 December 2016:
$84,000). Interest income from Makino was $93,000 for the six months ended 31 December 2017 (31 December 2016: $62,000).
SeaDragon
On 1 December 2017 SeaDragon exercised their right to call another $1,000,000 of convertible notes. The convertible notes issued to SeaDragon at
31 December 2017 total $3,000,000 (30 June 2017 $2,000,000).
There is a conversion element to the convertible note for 375,000,000 shares (30 June 2017: 250,000,000 shares), which is recognised as an
embedded derivative. The options and convertible note which Comvita hold at 31 December 2017 still have the ability to take the Company’s
shareholding over 20%. Refer to Note 10 for the valuation of the options and the convertible note.
d) Loans to related parties
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
30 June
2017
Audited
Loan receivableNote
Gan Enterprises Ltd (Nga Pi Honey)
Casa Base Trustees (Putake)
566472480
565-565
Total81,1324721,045
Loans to Gan Enterprises and Casa Base Trustees are secured over their investment in the equity accounted investee.
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
30 June
2017
Audited
Interest receivable
Gan Enterprises Ltd (Nga Pi Honey)
Casa Base Trustees (Putake)
-812
21--
Total21812
The Group’s interest income on the loan to Gan Enterprises Ltd was $15,000 for the six months ended 31 December 2017 (31 December 2016:
$7,000). Interest income on the loan to Casa Base Trustees was $21,000 for the six months ended 31 December 2017 (31 December 2016: Nil).
9. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES (continued)
e) Transactions with equity accounted investees
In thousands of New Zealand dollars
Sale of goods and servicesPurchases of goods and servicesRental expenditure
Transaction
value
Balance due
from
Transaction
value
Balance owing
to
Transaction
value
Balance owing
to
31 December 2017
Comvita China4,6414,341
--
--
Kaimanawa1,3281,328---
-
Makino -
-
12
-
-
-
Nga Pi Honey31-
-
-
-
Putake-
-
151151-
-
Extracts -
-
-
-
(6)
-
31 December 2016
Kaimanawa1,0701,426----
Extracts ----37-
10. DERIVATIVES
The table below analyses financial instruments carried at fair value, by valuation method. These are all level 2 on the fair value hierarchy, inputs other
than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
There have been no transfers between levels in either direction during the period.
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
30 June
2017
Audited
Derivatives – SeaDragon options and convertible note 8281,8751,124
Derivatives – assets (hedged) 1401,7271,207
Total assets9683,6022,331
Derivatives – liabilities (hedged)(2,595)(2,668)(2,625)
Total liabilities(2,595)(2,668)(2,625)
11. INVENTORY
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
30 June
2017
Audited
Raw materials72,23771,63959,895
Work in progress2 ,1051,6183,876
Finished goods 25,46424,84624,965
Provision for obsolescence(1,163)(875)(880)
Total inventory98,64397, 2 2887,856
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

Comvita Condensed Interim Financial Statements 2018 - P14Comvita Condensed Interim Financial Statements 2018 - P15
13. RECONCILIATION OF THE PROFIT/(LOSS) FOR THE PERIOD WITH THE NET
CASH FROM OPERATING ACTIVITIES

For the 6 months ended
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
Profit/(Loss) for the period3,729(7,109)
Adjustments for:
Depreciation2,1692,352
Amortisation1,2541,162
Gain on disposal of property, plant and equipment(362)(89)
Share based payments365190
Release of deferred revenue-(529)
Loss on fair value of derivatives of SeaDragon options
2972750
Share of (profit)/loss in equity accounted investees(1,114)352
Profit/(Loss) adjusted for non-cash items6,338(921)
Change in working capital items from foreign currency translation reserve604(255)
Foreign investor tax credits-12
Change in inventories(10,787)(1,929)
Change in trade receivables(6,270)(3,177)
Change in sundry debtors and prepayments(2,559)630
Change in trade and other payables(4,405)843
Change in employee benefits(603)724
Change in derivatives1,036(774)
Movement of deferred tax in equity(518)(105)
Change in tax payable717(5,546)
Change in deferred tax(962)321
Net cash from operating activities(17,409)(10,177)
14. RELATED PARTIES
Transactions with key management personnel
Key management compensation comprised:
In thousands of New Zealand dollars
31 December
2017
Unaudited
31 December
2016
Unaudited
Short term employee benefits1,3501,112
Shared based payments20298
Total1,5521,210

Other transactions with key management personnel
Directors and other key management personnel of the Company control 5.62% (30 June 2017: 9.80%, 31 December 2016: 9.91%) of the
voting shares of the Company.
12. LOANS AND BORROWINGS
In thousands of New Zealand dollars
31 December
2017
31 December
2016
30 June
2017
UnauditedUnauditedAudited
Balance at beginning of period66,50086,80086,800
Repayment of term loans and borrowings-(150)(20,300)
Drawdown from long term borrowings20,800--
Balance at end of period87,30086,65066,500
Represented as:
Cash and cash equivalents4,9314,2654,572
Less non-current loans and borrowings(87,300)(86,650)(66,500)
Total net debt(82,369)(82,385)(61,928)
The Group was in compliance with banking covenants during the period and as at 31 December 2017.
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

Comvita Condensed Interim Financial Statements 2018 - P16Comvita Condensed Interim Financial Statements 2018 - P17
NOTES TO THE FINANCIAL STATEMENTS
14. RELATED PARTIES (continued)
Other related party transactions
Brett Hewlett received $10,000 in consulting fees for his representation of Comvita on the board of SeaDragon.
Craigs Investment Partners Limited are considered to be a related party as Neil Craig is Chairman of both entities. Craigs Investment Partners Limited
manage the Comvita share purchase program (START Scheme) and facilitated the sale of shares in the Executive Share Scheme (refer Note 15) for
some employees. During the period fees paid to Craigs Investment Partners Limited, recognised in other expenses for mainly secretarial services
totalled $20,000 (six months ended 31 December 2016: $16,000).
15. EXECUTIVE EMPLOYEE SHARE SCHEME
Comvita Limited has an Executive Share Scheme called the Comvita Limited Partly Paid Share Scheme (“The Scheme”). The Scheme is designed to
provide key employees with an opportunity to benefit from share price growth. A summary of the key points is disclosed in the most recent annual
financial statements.
No shares have been issued during the six months ended 31 December 2017. Movements in the number of share entitlements outstanding
under the scheme are shown below:
Entitlements on issue at
In thousands
31 December 201731 December 2016
Number of
entitlements
Weighted average
exercise price
Number of
entitlements
Weighted average
exercise price
Entitlements outstanding at beginning of period
2,3397. 201,5314 .71
Entitlements granted
--80111.08
Entitlements converted to ordinary shares
(282)3.78(114)6.71
Entitlements forfeited
--(461)3.74
Entitlements outstanding at end of period
2,0577.671,7577.74
16. NET TANGIBLE ASSETS PER SHARE
31 December
2017
Unaudited
31 December
2016
Unaudited
Net tangible assets per share (NZ cents)
3.212.50
17. SUBSEQUENT EVENTS
Interim dividend
The Board has announced an interim dividend of $0.04 cents per share (fully imputed) payable on 23 March 2018, record date 16 March 2018.
COMVITA LIMITED
Comvita Limited
23 Wilson Road South, Paengaroa
Private Bag 1, Te Puke 3153
Bay of Plenty, New Zealand
Phone +64 7 533 1426
Fax +64 7 533 1118
Freephone 0800 504 959
Email investor-relations@comvita.com
www.comvita.com
REGISTERED OFFICE
DIRECTORY
COMVITA BOARD OF DIRECTORS
Neil John Craig
Sarah Christine Ottrey
Lucas (Luke) Nicholas Elias Bunt
Sarah Jane Kennedy
Murray John Denyer
Paul Robert Thomas Reid
Brett Donald Hewlett
DIRECTORS
KPMG Tauranga
KPMG Tauranga
Level 2
247 Cameron Road
Tauranga 3140
AUDITORS
SHARP TUDHOPE
Sharp Tudhope
Level 4
152 Devonport Road
Private Bag TG12020
Tauranga 3110
SOLICITORS
LINK MARKET SERVICES LIMITED
Link Market Services Limited
PO Box 91976
Auckland 1142
SHARE REGISTRY
WESTPAC BANKING CORPORATION
Tauranga Branch
27 Spring Street
PO Box 13215
Tauranga 3141
BANKERS

Comvita Condensed Interim Financial Statements 2018 - P18
DIRECTORY
NORTH AMERICA
Comvita USA Inc.
10. E Yanonali St
Santa Barbara, CA 93101
USA
Phone +1 855 449 2201
usacustomerservice@comvita.com
CHINA
Comvita Food (China) Limited
No.3038, Luosha Road,
Liantang Street,
Luohu District
Shenzhen | China
Phone +86 755 8366 1958
comvita@comvita.com.cn
UNITED KINGDOM
Comvita UK Limited
2nd Floor, 47a High Street
Maidenhead, SL61JT
United Kingdom
Phone +44 1628 779 460
info@comvita.co.uk
NEW ZEALAND
Comvita New Zealand Limited
23 Wilson Road South | Paengaroa
Private Bag 1 | Te Puke 3153
Bay of Plenty | New Zealand
Phone +64 7 533 1426
Freephone 0800 504 959
info@comvita.com
HONG KONG
Comvita Hong Kong Limited
Room 1320 – 1322 Leighton Centre
77 Leighton Road
Causeway Bay
Hong Kong
Phone +852 2562 2335
cs@comvita.com.hk
SOUTH KOREA
Comvita Korea Co Limited
Aju Building #403
600 Gyeongin-ro
Guro-gu, Seoul (08213) | Korea
Phone +82 2 2631 0041
service.korea@comvita.com
AUSTRALIA
Comvita Australia Pty Limited
10 Edmondstone Street
South Brisbane
Queensland 4101 | Australia
Phone +61 7 3846 6047
Freephone 1800 466 392
info@comvita.com.au
JAPAN
Comvita Japan Company Limited
Sangenjaya Horisho Bld 4F
1-12-39 Taishido, Setagaya-Ku
Tokyo 154-0004 | Japan
Phone +81 3 6805 4780
info@comvita-jpn.com

---

APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
x
whether:
Interim
x
YearSpecialDRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per security
Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
Supplementary
Amount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FDP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
$
16 March, 201823 March, 2018
$1,823,000
Date Payable
23 March, 2018
$$0.002778$0.007059
In dollars and cents
RETAINED EARNINGS
$0.04
NZD$0.705882
Enter N/A if not
applicable
ORDINARY SHARESNZCVTE0001S7
EMAIL: announce@nzx.com
Notice of event affecting securities
1
COMVITA LIMITED
JULIANNE KEASTDIRECTORS RESOLUTION
027-420-128607 533 111823022017

---

INVESTOR PRESENTATION
HY18 AND OUTLOOK FY18
CHIEF EXECUTIVE OFFICER, SCOTT COULTER, 021 386 988
CHIEF COMMERCIAL OFFICER, MARK SADD, 027 707 9698
FEBRUARY 2018
Investor Presentation HY February 2018

This presentation is given on behalf of Comvita Limited. Information in this presentation:
•shouldbe read in conjunction with, and is subject to, Comvita’s Annual Reports, Interim Reports and market
releases on NZX;
•is from unaudited interim reports for thesix monthsyear ended 31December2017;
•may contain projections or forward-looking statements about Comvita. Such forward-looking statements are
based on current expectations and involve risks and uncertainties. Comvita’s actual results or performance may
differ materially from these statements;
•includesstatements relating to past performance, which should not be regarded as a reliable indicator
of future performance;
•is for general information purposes only, and does not constitute investmentadvice;
•is current atthedate of this presentation, unless otherwise stated.
While all reasonable care has been taken in compiling this presentation, Comvita accepts no responsibility for any
errors or omissions.
All currency amounts are in NZ dollars unless otherwise stated.
IMPORTANTNOTICE
22
Investor Presentation HY February 2018

1.HY18 results
2.Update on markets and
business opportunities
3.FY18 Outlook
OVERVIEW
4
Investor Presentation HY February 2018

HALF YEAR IN REVIEW
•Sales up 45% compared with the prior period
•Return to profitability in the first half year
•Grey channel sales up 45% on prior year
albeit slower than anticipated at this stage
of the year
•China JV off to a good start. Ahead of internal
expectations on profitability
•Ministry for Primary Industries (MPI) released
its new certification standard for Manuka
honey and is seen as positive for both
industry and Comvita
•Positive start to 2018 honey season but poor
finish. Expectation for lower than average
season. Final view expected April/May
5
SALES
$83.6m
NET PROFIT AFTER TAX
$3.7m
CHINA JV EQUITY
EARNINGS
$1.5m
NEW MPI DEFINITION
FOR MANUKA HONEY
Figures are based on 6 months
unaudited results to 31 December 2017.
Investor Presentation HY February 2018

Financial results for
theperiod ended
Sixmonths
to 31
December
2017
Unaudited
Sixmonths
to 31
December
2016
Unaudited
Six months
to 30
September
2015
Unaudited
Revenue$83.6m$57.7m$91.1m
EBITDA*$9.9m($2.8m)$10.2m
EBITDA % of revenue12%(5%)11%
Net profit after tax -NPAT$3.7m($7.1m)$3.0m
NPAT attributed to non operating items($0.3m)($2.8m)-
NPAT excluding non operating items$4.0m($4.4m)$3.0m
Earnings per share NPAT (NZ Cents)8.31(17.18)7.69
Dividend per share (NZ Cents)4.002.006.00
*EBITDA: earnings before interest, tax, depreciation
andamortisation.
KEYFINANCIALRESULTS
•NPAT of $3.7m on sales of $83.6m
compared to $7.1m loss for the prior
comparable period
•Interim dividend of 4.0 cents per share
for the 2018 year consistent with our
existing dividend policy of a 40-45% pay
out ratio of after tax operating profits
•Earnings per share up 8% on 2015
as a result of a continued focus on
earnings, productivity and Return on
Capital Employed
6
Investor Presentation HY February 2018

7
NORTH AMERICA
$20m
(2016 : $2m)
Figures are based on 6 months unaudited results to 31 December 2017. Other sales of $7m (2016: $8m).
(2016 comparative: 6 months unaudited results to 31 December 2016.)
*$4m represents the sales from Comvitato the China JV.
** $23m represents in market sales of the China JV which are not included in Comvitagroup revenue, as equity accounted.
SALES FOR THE 6 MONTHS TO 31 DECEMBER 2017
EUROPE
$5m
(2016 : $4m)
REST OF ASIA
$17m
(2016 : $16m)
CHINA
$4m
*
(2016 : $4m)
$23m
**
(2016 : $0m)
AUSTRALIA
$17m
(2016 : $12m)
NEW ZEALAND
$15m
(2016 : $12m)
7
Investor Presentation HY February 2018

$
AUSTRALASIAN UMF®SALES
•Grey channel sales continued to improve up 45% on prior
year, albeit at a slower rate than anticipated
•This compares to our internal forecastfor a partial
recovery of the FY16 peak of just over 50% growth
on the prior year
•Inventory in these key markets are at record lows
resulting from caution around the implementation of the
new Ministry for Primary Industries (MPI) definition of
Manuka honey
8
Investor Presentation HY February 2018

NORTH AMERICA
RESULTS
9
•Positive execution of strategy to diversify markets
between East and West
•Market sales growth from $2m to $20m on comparative
period
•Strategic investment in both working capital and consumer
marketing to support market growth
-Extensive digital and social marketing campaigns
-USA Media Trip; Eight, targeted wellness and
lifestyle journalists and social media influencers
•Strong sell-through from newly established relationship with
Costco. Costco sales in Canada and Japan in the second half of
the year expected to add to group profitability
•We are also looking to extend distribution into natural health
channels in both North America and Canada
•Doubled sales in e-commerce channels over last 12 months
further strengthening our position in the US market
Investor Presentation HY February 2018

CHINAJOINTVENTURE
RESULTS
10
•Sales meeting expectations and profit ahead of
internal targets
-Sales $23.4m
-Share of earnings $1.5m
•Good expansion in e-commerce business
•Strategy to grow bee products and leveraging
our brand strength in Manuka honey
•Key market to execute a ‘closer to consumer’
strategy
•Focus on core
Bee products
•Transition and
integration
•Team build-up
•Introduction of
new products
•Grow e-
commerce
coverage
FY17-18
•Launch new
products
•Open new
customers
•Geography
expansion
•Increase
brand
investment
FY19-20
•Transform
from honey
relevance to
holistic
health
products
FY21-22
Investor Presentation HY February 2018

$58m
$2m
$4m
Figures are based on 6 months unaudited
results to 31 December 2017.
HEALTHCARE
(2016:$19m)
FUNCTIONAL
FOODS
(2016: $30m)
PERSONAL
CARE
(2016:$2m)
MEDICAL
(2016:$7m
including
royalties)
$20m
PRODUCT SEGMENTS OF TOTAL REVENUE
11
Investor Presentation HY February 2018

COMVITA -THE LEADING BRAND
12
Investor Presentation HY February 2018
•Comvita’s Net Brand Adoration 59%; 3x higher than our
nearest competitor
•Appointment of new management team and Marketing
Director for China is improving brand awareness
•Extensive promotions for key trading periods have driven
growth, particularly in Manuka honey
•Manuka Honey Sachets launched for ‘singles day’ enhancing
leadership position
•Brand awareness in Hong Kong at highest ever level*
•Increased marketing resource in key markets of Hong Kong
and North America
*Fiftyfive5 biannual Market Monitor survey

INNOVATION
Investor Presentation HY February 2018
•70% of our new product innovations lever our core
strength of Manuka honey. Product innovations to
date include Manuka Honey sachets, Medihoney®
dressings, elixirs and milk chews.
•We are also continuing to launch products that
meet a broader range of customer health needs
with focus on a few strategic ingredient platforms.
•Medihoney® Manuka Honey Adhesive Dressings
launched and running to plan
•Manuka Honey sachets launched at ‘singles day’
proved a significant success
•Macular Health (Eye Health) and non-bee product
innovation has been very successful, and now
represents close to 15% of total Hong Kong sales
13

•Net debt similar to last year
and increased to fund inventory
build and timing related to
North America debtors
•Issue of $16.4m share capital
on 3 July 2017 as consideration
for 51% of China JV
•China debtors balance has
decreased from year-end, but is
still significant at $15m. No risk of
collection but simply a transition
of newly formed JV
BALANCESHEET
Key
Balance
Sheet
Ratios as at
31 December
2017
Unaudited
$’000
31December
2016
Unaudited
$’000
30 June
2017
Audited
$’000
Total assets296,625260,098256,692
Raw material inventory72,23771,63959,895
Net debt82,36982,38561,928
Net debt to equity ratio44%55%38%
Weighted average shares on
issue
44,84841,37241,373
14
Investor Presentation HY February 2018

15
•Strong inventory position consistent with prior HY
-31 December 2017, $98.6m
-31 December 2016, $97.2m
•Finished goods (FG)
-Consistent at $25m whilst sales grew by 45%
-Delivery in full and on time (DIFOT)
remains stable at 96%
•Raw Materials
-$72m of raw material stock
-Honey inventory can increase in value over time
-Inventory hold to satisfy full year expectations
INVENTORY
Investor Presentation HY February 2018
BUSINESS IMPROVEMENTS
15
$
MILLIONS
80
100
60
40
20
0
120
INVENTORY ON HAND AT 31 DECEMBER
DEC 17
DEC 16
FINISHED GOODSWORK IN PROGRESS
RAW MATERIALS

•Operating cash outflow of $17.4m
(HY 2016: $10.2m)
•Inventory build to support
earnings forecast
•Working capital funding to support
China and North America growth
CASHFLOW
Cash flow movements
31 December
2017
$’000
Unaudited
31December
2016
$’000
Unaudited
Movement
$000
Operating cash outflow(17,409)(10,177)(7,232)
Investing activities(4,175)(10,188)6,013
Financing activities21,83821,926(88)
Cash and cash equivalents4,9314,265666
16
Investor Presentation HY February 2018

MANUKAHONEY
40,500HIVES
•Geographical spread vital this year to
mitigate unsettled weather events
•Full visibility of the crop available
April/May
•Unfavourable finish to the 2018 season
now expected to result in below average
volume
•Volume anticipated to be down on
expectation however quality expected to
be above. Quality of honey expected to
partly offset volume deficit
•Apiary business returning to profit in
2018 compared to significant loss in 2017
17
Investor Presentation HY February 2018

MYRTLE RUST
•Consistent with our market guidance on 27 June 2017,
we believe the overall risk to the New Zealand Manuka
honey industry is low.
•So far, only one Manuka plant has been infected, out of
10,766 Manuka plants surveyed. This plant was in a
protected environment, in a nursery.
Source: Apiculture NZ, February 2018
•In spite of warm summer period and extensive
surveys completed by MPI, no infections found in
the wild on Manuka
18
Investor Presentation HY February 2018

MANUKAHONEYDEFINITION
19
There is now a legal definition for Manuka honey
Investor Presentation HY February 2018
•Manuka honey definition is a great leap forward for the industry
•Clear, legally enforceable standards for Mono and Multifloral
Manuka honey
•Independent testing required for export certification
•Will have cost implications with the expected price gap between
5+ and 10+ honey to close
•Complications in both manufacturing and procurement will lead
to some short term pain as consumers and customers adjust to
a higher cost environment
•Implementation of standard temporarily affecting purchase
behaviour as consumers and customers adapt
•Comvitawell poised to adjust quickly to new standard
•Long term opportunities for growth exist for Comvita

STRATEGY & OUTLOOK
Investor Presentation HY February 2018

CONSUMER-FOCUSSED BUSINESS
DIRECTLY CONNECTED TO THE SOURCE
INNOVATION
ACQUISITIONS
EARNINGSFOCUS
21
COMVITA STRATEGY ON TRACK
$400M BY FY21
Investor Presentation HY February 2018

22
Ben Shaw
ChiefMarketing
Officer
SimonPothecary
Chief Sales
Officer
Colin Baskin
Chief SupplyChain
Officer
SharonHollenstein
Chief Innovation
Officer
LEADERSHIPTEAM
JulianneKeast
ChiefFinancial
Officer -Acting
KateSelway
Chief People & Culture
Officer -Acting
ScottCoulter
Chief ExecutiveOfficer
TBC
NewChiefDigital
Officerrole
MarkSadd
Chief CommercialOfficer
Investor Presentation HY February 2018
22

23
SarahKennedy
Independent
Director
MurrayDenyer
Independent
Director
Paul Reid
Independent
Director
BrettHewlett
Independent
Director
NeilCraig
Non-ExecutiveChairman
Luke Bunt
Independent
Director
SarahOttrey
Independent
Director
BOARDOFDIRECTORS
23
Investor Presentation HY February 2018

OUTLOOK–February 2018
•Slow finish to the 2018 honey harvest,
now expected to be a below-average volume
•Grey channel recovery up 45% on prior year however
slightly below internal expectations
•North American market continuing to perform
•MPI regulations are causing some short-term
uncertainty but will be very positive for Comvita’s
growth opportunities globally
•Board and management remain confident in our full
year outlook of operating NPAT greater than $17.1m
24
Investor Presentation HY February 2018

THANKYOU