2018 Profit Guidance and Due Diligence Process

16 April 2018


2018 Profit Guidance and Due Diligence Process

Comvita (NZX:CVT) announced today that because of the latest estimates on the value of its 2018 honey
harvest, the Company anticipates its after tax operating earnings for the financial year ending
30 June 2018 are now likely to be downgraded to the range of $8m-$11m.

Given the share price sensitivity of this forecast update, the Comvita Board believes it is obliged at this
time, to disclose that Comvita is party to a Confidentiality Agreement with a third party, pursuant to a
due diligence process currently being conducted on the Company. This process, which has been ongoing
for several months, is to enable the third party to assess the potential acquisition of all or substantially
all the shares in Comvita, whether by way of takeover, scheme of arrangement, amalgamation or other
business combination.

Profit Guidance
Comvita CEO Scott Coulter said, “On 23 February 2018 we signalled the weather experienced during the
second half of the 2018 honey season had not been conducive to good honey production and we were
now expecting honey crop volumes to be below that of an average year. We also signalled we would
further update the market on the harvest once honey extraction from the hives and quality testing was
completed in May. The weather for the rest of February and early March continued to not be conducive
to honey production and the anticipated late harvest did not eventuate. We have now completed 80%
of the extraction for the season and tested 50% of our honey, and the yields are well below
expectations; around half of what we originally budgeted. This poor harvest has a direct impact on our
apiary business profitability for the current financial year ending 30 June 2018. The direct financial
impact on our forecast position for the year is in the order of $8m after tax.

Comvita Chairman Neil Craig said, “It is disappointing that after early signs the 2018 honey crop was
shaping up well, we have experienced such a poor end to the season. We indicated on 23 February that
subject to confirmation of apiary profitability and a solid recovery of the grey channel sales from
New Zealand and Australia to China, the Board remained confident in the full year outlook of an
operating NPAT of greater than $17.1m. Because of our latest estimate on the 2018 crop and some
assumed risk to our sales targets to the end of this financial year, we now anticipate that our 2018 after
tax operating earnings will be in the range of $8m-11m.”

Due Diligence process with Potential Acquirer
Mr Craig said, “Comvita is party to a Confidentiality Agreement with a third party, pursuant to which a
due diligence process on Comvita is being conducted. The purpose of the due diligence is to enable the
third party to assess the potential acquisition of all or substantially all the shares in, or assets, of
Comvita, whether by way of takeover, scheme of arrangement, amalgamation or other business
combination.

While the Board believes this due diligence process is moving towards a conclusion, the possible
acquisition remains for now an incomplete transaction and there is no certainty that any offer will be
forthcoming. The Board cannot provide any further comment or guidance at this stage, other than the
fact we should expect to be in a position to further update the market by mid-May 2018.

As this release emphasises, the third party approach was, and remains, an incomplete proposal.
Ordinarily this would not require disclosure at this time; however, given the content of the 2018
financial forecast update, the Board believes it is obliged to also foreshadow this possible future
development, to ensure shareholders are fully appraised as to the current prospects of the Company.”


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

Background information
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.