Comvita Announces Half Year Result

26 February 2019

Comvita Announces Half Year Result

For the six month period ending 31 December 2018, Comvita (NZX:CVT) today announced a Net Loss After Tax of
$2.7m on revenue of $77.7m. This compares to a Net Profit After Tax for the comparable period last year of
$3.7m on revenue of $83.6m.

Financial results for the six months to 31 December 2018 (six months to 31 December 2017)

2018 2017
Revenue $77.7m $83.6m
EBITDA* $1.3m $9.9m
EBITDA% 2% 12%
Net Profit After Tax (NPAT) ($2.7m) $3.7m
NPAT attributed to non-operating items** $0.7m ($0.3m)
NPAT excluding non-operating items ($3.4m) $4.0m
Earnings per share (cents) (5.91) 8.31
Dividends per share (cents) Nil 4.0

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

Comvita Chairman Neil Craig, said “It has been a challenging 1st half to the FY19 year, which has resulted in a
shortfall in revenue and profit to that achieved in the comparable period FY18. It has also been a period where
we have implemented some important fundamental changes to the business that will result in long term,
sustainable competitive advantage for Comvita.”

Strategic Direction
At the end of the FY18 year, the Company made a significant change to Comvita’s strategy, and we communicated
this at our ASM in October 2018. Management has executed many aspects of this strategy:

• A much greater focus on Manuka honey and propolis (and less on other ingredient platforms).
• Harmonisation of prices across the various sales channels targeting China.
• Growth of Sales and improved margin for our distribution Joint Venture in China.
• Reduced dependence on the Daigou market out of Australia and New Zealand into China.
• Broadened our customer base in North America from dependence on one key customer.
• A step up in marketing activities and packaging to support our premium brand positioning.
• Implementation of a more aggressive plantation strategy using 3
rd
party capital to provide long term
supply security for high UMF Manuka honey.

We believe the strategic shift to focus on the formal channels into China will provide a sustainable competitive
advantage for Comvita. Implementing some of these changes has taken longer to complete than we originally
anticipated. Consequently, improved financial performance from implemented changes has been slower to
materialise than forecast. In particular, it has taken longer than earlier anticipated to conclude sales agreements
with all major CBEC (cross border e-commerce) sellers into China. This strategy, including price harmonisation
between channels, was identified by Comvita as the key part of maximising profit in the long term from the
Chinese market. We believe that between our China Joint Venture, the formal CBEC channels and the Daigou
sellers from New Zealand and Australia into China, we now have ‘all bases covered’ in order to optimise profit on
sales to Chinese consumers in the long term.

This change in approach to China, no orders from one major existing USA customer and another poor pre-
Christmas honey harvest, are the main contributors to the poor financial result in the first 6 months.

2018-2019 Manuka Honey Harvest
The Manuka honey harvest season is now effectively complete. We have commenced extraction of honey from
the hives but only a small sample of the crop has been tested for quality (UMF activity). From early January to
mid-February, we achieved excellent yields from the central and western part of the North Island, which will help
counter the poor pre-Christmas crop from Northland and the northern and eastern parts of the North Island. We
are optimistic that, while the crop is lower than our budget, it is significantly better in terms of quantity (and
quality) than the last two years.

Inventory
Our net bank borrowing at 31 December 2018 was $104m. This use of bank borrowings to purchase high UMF
Manuka honey inventory is a targeted use of debt. Today our total inventory is $120m. This provides us with
secure honey supply of the highest quality which will grow in value while in storage. As we produce more honey
from our own apiaries and generate profit, we expect this net debt to decline. Today, it is at c.$95m with
significant bank headroom available.

Further, in the last 6 months we have fully funded from borrowings, at a total cost of c.$19m, our state-of-the-art
warehouse and new production facilities, land for plantations and purchased 20% of Apiter (our supplier of high
quality propolis in Uruguay). The Apiter purchase has met our expectations in terms of supply and operating
performance, in the first 6 months.

CEO Commentary
Comvita CEO Scott Coulter, says “I am confident that significant progress has occurred in the execution of our
strategy, the benefit of such will not be fully appreciated until the 2nd half of this financial year and beyond.”

Market Outlook
We have seen very good progress being made in our Joint Venture company based inside China. Sales
expectations are on target and we are seeing an improved gross profit margin, because of our strategic pricing
model approach to our entire business. We have increased our marketing investment inside China, in line with
our strategy and we expect to see continued growth in this market.

In our other key market of North America, we have strong sales growth in Canada in the first half of the year,
good growth in digital sales channels and have several new wholesale customers including Whole Foods. Despite
these positive factors, we have seen a decline in sales overall in North America because an expected
replenishment order from our biggest North America customer has not yet been received. This has had an
impact in respect of our sales when compared with the same period in FY18.

CEO Comments on Outlook
The interim financial result and prospects for the current financial year ending 30 June 2019 are disappointing,
against a backdrop of forecasts we gave at our Annual Shareholder Meeting of revenue and profit growth.

The reality is that:
• Our Manuka honey harvest for this season will be below expectations but better than the last 2 years,
• New revenue opportunities in North America and Europe while still in progress, will materialize either late
in FY19 or early FY20, and
• Our strategic approach to price harmonization between channels and markets has impacted Daigou sales
in the 1
st
Half, but has given us margin benefits, particularly inside China.

In effect, the Financial Result is masking strategic gains. In particular, these are:
• The excellent performance of our China Joint Venture which commenced operation in July 2017 and has
enabled us to reduce our reliance on the ‘informal’ Daigou channel out of New Zealand and Australia into
China.
• Diversification of our revenue base into North America, away from dependence on very large single
company orders.
• With respect to our apiary business, material quantities of high UMF Manuka honey are being delivered
from long term leases and plantations we now have in the Central North Island, rather than a dependence
on the higher risk ‘pre-Christmas’ northern geographic regions of the North Island.

Conclusion
Chair Neil Craig, said “The issues outlined above affecting revenue and production of honey in the 1st Half, will
impact on our Full Year Result to the extent we now think that we will fall short of Net Profit After Tax of $8.2m
we achieved in the FY18. However, we have set up the business from a revenue and margin point of view to
deliver strongly in the balance of the 2019 calendar year and beyond. We believe our efforts with respect to
price harmonisation between markets and channels and our brand building work in China over the last 12 months
will reward us for years to come.

We also believe our approach of a lower cost apiary ‘set up’ and the targeting of the more stable climate areas in
the central North Island including plantation Manuka, is starting to deliver. Our long term strategy of planting
c.2000 ha pa of improved high UMF manuka plants on otherwise marginal central North Island high country, is a
fundamental tenant to securing our future Manuka honey supply from a sustainable source.”

For a more detailed analysis regarding the 1
st
half of the FY19, please refer to the Financial Statements and
Investor Presentation respectively, loaded onto the Comvita website: www.comvita.co.nz


Ends.

For further information:
Comvita CEO, Scott Coulter, 021 386 988
Comvita Chair, Neil Craig, 021 731 509


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.

---

Comvita Limited (CVT)
Results for announcement to the market

Reporting Period 6 months to 31 December 2018
Previous Reporting
Period
6 months to 31 December 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ 77,741 (7.0%)
Profit (loss) from
ordinary activities after
tax attributable to
security holder
$NZ (2,678) (171.8%)
Net profit (loss)
attributable to security
holders
$NZ (2,678) (171.8%)

Interim Dividend Amount per security Imputed amount per
security
- -

Record Date -
Dividend Payment Date -

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


Attachments:
• Financial statements
• Investor presentation

---

Comvita Condensed Interim Financial Statements 2019 - PIComvita Condensed Interim Financial Statements 2019 - PI
FOR THE 6 MONTHS ENDED
31 DECEMBER 2018
COMVITA LIMITED AND GROUP
FINANCIAL
STATEMENTS
CONDENSED INTERIM

Comvita Financial Statements 2018 - PIICondensed Interim Comvita Financial Statements 2018 - P1
DIRECTORS’ DECL A R ATION
CONDENSED INTERIM INCOME STATEMENT
CONDENSED INTERIM STATEMENT OF
COMPREHENSIVE INCOME
CONDENSED INTERIM STATEMENT OF CHANGES
IN EQUIT Y
CONDENSED INTERIM STATEMENT OF
FINANCIAL POSITION
CONDENSED INTERIM STATEMENT OF CASH FLOWS
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
COMPA N Y DIRECTORY
2
3
4
5
6
7
8-17
18-19
CONTENTS

Comvita Condensed Interim Financial Statements 2019 - P2Comvita Condensed Interim Financial Statements 2019 - P3
In the opinion of the directors of Comvita Limited, the interim financial statements and the notes, on pages 3 to 17
• comply with New Zealand generally accepted accounting practice and fairly state the financial position of the Group as
at 31 December 2018 and the results of their operations and cash flows for the six month period ended on that date.
• have been prepared using appropriate accounting policies, which have been consistently applied and supported by
reasonable judgements and estimates, except for those changed with the Group adopting NZ IFRS 15 Revenue from
contracts with customers and NZ IFRS 9 Financial Instruments.
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
six month period ended 31 December 2018.
For and on behalf of the Board of Directors:
DIRECTORS’ DECL A R ATIONINCOME STATEMENT


Neil Craig Luke Bunt
25 February 2019 25 February 2019
For the 6 months ended 31 December 2018
In thousands of New Zealand dollars
31 December
2018
Unaudited

31 December
2017
Unaudited
Note
Revenue77,741
83,561
Cost of sales(45,856)
(47,765)
Gross profit31,885
35,796
Other income762
650
Selling and marketing expenses(20,952)
(17,983)
Distribution expenses(4,135)
(3,945)
Research and development expenses(1,060)
(1,776)
Administrative expenses(9,759)
( 7,615)
Operating (loss)/profit before financing costs(3,259)
5,127
Finance income51,131
794
Finance expenses5(2,735)
(2,160)
Net finance costs(1,604)
(1,366)
Share of profit of equity accounted investees9b798
1,114
Impairment of equity accounted investees9b(101)
-
(Loss)/profit before income tax(4,166)
4,875
Income tax benefit/(expense)61,488
(1,146)
(Loss)/profit for the period(2,678)
3,729
Earnings per share:
Basic earnings per share (NZ cents)7(5.91)8.31
Diluted earnings per share (NZ cents)7(5.91)7.91
The notes on pages 8 to 17 are an integral part of these condensed interim financial statements.
Condensed interim

Comvita Condensed Interim Financial Statements 2019 - P4Comvita Condensed Interim Financial Statements 2019 - P5
For the 6 months ended 31 December 2018
In thousands of New Zealand dollars
Share
capital
Foreign
currency
translation
on reserve

Hedging
reserve
Retained
earningsTotal
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
- acquisition16,414---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
Balance at 1 July 2018137,744(1,659)(2,348)55,955189,692
Total comprehensive income for the year
(Loss) after tax for the period---(2,678)(2,678)
Other comprehensive income (net of tax):
Foreign investor tax credits received---1010
Foreign currency translation differences for foreign operations-(1,267)--(1,267)
Effective portion of changes in fair value of cash flow hedges--398-398
Total other comprehensive (loss) for the period-(1,267)39810(859)
Total comprehensive (loss) for the period-(1,267)398(2,668)(3,537)
Transactions with owners, recorded directly in equity
Share based payments---334334
Issue of ordinary shares:
- executive share scheme531---531
- staff share scheme19---19
Issue of treasury stock (note 9b)580--305885
Dividends paid---(918)(918)
Total transactions with owners1,130--(279)851
Balance at 31 December 2018138,874(2,926)(1,950)53,008187,006
For the 6 months ended 31 December 2018
In thousands of New Zealand dollars
31 December
2018
Unaudited

31 December
2017
Unaudited
(Loss)/profit for the period(2,678)3,729
Items that are or may be reclassified subsequently to the income statement
Foreign currency translation differences for foreign operations (1,760)2,936
Effective portion of changes in fair value of cash flow hedges553(1,086)
Foreign investor tax credits received10
-
Income tax on income and expense recognised directly in other
comprehensive income
338(518)
Income and expense recognised directly in other comprehensive
income
(
859
)1,332
Total comprehensive (loss)/income for the period (3,537)5,061
The notes on pages 8 to 17 are an integral part of these condensed interim financial statements.
Condensed interim STATEMENT OF
COMPREHENSIVE INCOME
Condensed interim STATEMENT OF
CHANGES IN EQUITY
The notes on pages 8 to 17 are an integral part of these condensed interim financial statements.

Comvita Condensed Interim Financial Statements 2019 - P6Comvita Condensed Interim Financial Statements 2019 - P7
As at 31 December 2018

In thousands of New Zealand dollars
31 December 2018
Unaudited
31 December 2017
Unaudited
30 June 2018
Audited
Note
Assets
Property, plant and equipment
12
54,24846,55447,508
Biological assets4,1594,2754,331
Intangible assets and goodwill32,07234,08033,397
Investment in equity accounted investees
9
40,99131,31030,621
Other investments888
Deferred tax asset3,0823,1112,992
Total non-current assets134,560119,338118,857
Inventory
11
119,04098,643116,492
Trade receivables40,77150,28355,813
Sundry receivables
8
18,35520,58521,851
Cash and cash equivalents
13
8,0264,9314,947
Derivatives
10
3,827968186
Tax receivable2,3921,877421
Total current assets192,411177,287199,710
Total assets326,971296,625318,567
Equity
Issued capital138,874137,659137,744
Retained earnings53,00852,84055,955
Reserves
(4,876)
(3,649)(4,007)
Total equity187,006186,850
189,692
Liabilities
Loans and borrowings
13
111,70087,30096,700
Employee benefits430388407
Total non-current liabilities112,13087,68897,107
Trade and other payables22,21514,683
22,938
Employee benefits3,0053,367
4,048
Tax payable1151,442
1,414
Derivatives
10
2,5002,595
3,368
Total current liabilities27,83522,087
31,768
Total liabilities139,965109,775
128,875
Total equity and liabilities326,971296,625
318,567
The notes on pages 8 to 17 are an integral part of these condensed interim financial statements.The notes on pages 8 to 17 are an integral part of these condensed interim financial statements.
For the 6 months ended 31 December 2018
In thousands of New Zealand dollars
31 December
2018
Unaudited
31 December
2017
Unaudited
Note
Receipts from customers89,09578,377
Payments to suppliers and employees(79,091)(92,118)
Interest received16194
Interest paid(2,468)(1,863)
Taxation paid(1,360)(1,899)
Net cash flows from operating activities146,337(17,409)
Deposit for business combination18(600)-
Payment for loans to related parties-(87)
Payment for investment in equity accounted investee
9
(6,513)-
Payment for loans to equity accounted investee(922)(2,168)
Payment for the acquisition of property, plant and equipment
12
(9,859)(2,298)
Receipt from disposal of property, plant and equipment319612
Receipt of profit from equity accounted investee-256
Payment for the acquisition of intangibles(336)(490)
Net cash flows from investing activities(17,911)(4,175)
Proceeds from the issue of shares5501,044
Payment for share capital issue expenses-(6)
Payment of dividend(918)-
Drawdown of loans and borrowings15,00020,800
Net cash flows from financing activities14,63221,838
Net increase in cash and cash equivalents3,058254
Cash and cash equivalents at the beginning of the period4,9474,572
Effect of exchange rate fluctuations on cash held21105
Cash and cash equivalents at the end of the period8,0264,931
Represented as:
Cash and cash equivalents138,0264,931
Bank overdraft--
Total8,0264,931
Condensed interim STATEMENT OF
FINANCIAL POSITION
Condensed interim STATEMENT OF
CASH FLOWS

Comvita Condensed Interim Financial Statements 2019 - P8Comvita Condensed Interim Financial Statements 2019 - 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 2018 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, 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 2018.
The condensed interim financial statements were approved by the
Board of Directors on 25 February 2019.
(b) Basis of measurement
The financial statements have been prepared on the historical cost
basis except for derivative financial instruments 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 2018.
(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) Critical 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 2018, except for those changed with adopting NZ
IFRS 9 Financial Instruments. The effect of these changes in accounting
policies are shown in note 10.
The accounting policies have been applied consistently throughout
the Group for the purposes of these condensed interim financial
statements.
3. SIGNIFICANT ACCOUNTING
POLICIES
(a) Basis of consolidation
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 2018 except for
those changed with adopting NZ IFRS 15 Revenue from contracts with
customers and NZ IFRS 9 Financial Instruments.
NZ IFRS 15 Revenue from contracts with customers (NZ IFRS 15) replaces
NZ IAS 18 Revenue. The Group transitioned to NZ IFRS 15 with a date of
initial application of 1 July 2018. The transition to NZ IFRS 15 has not had
a material impact.
NZ IFRS 9 Financial Instruments (NZ IFRS 9) replaces NZ IAS 39 Financial
Instruments: Recongition and Measurement. The Group transitioned
to NZ IFRS 9 with a date of initial application of 1 July 2018. NZ IFRS 9
addresses the classification and measurement of financial assets and
financial liabilities, impairment of financial assets and hedge accounting.
The transition to NZ IFRS 9 has not resulted in a material change to the
numbers reported at 31 December 2018 and therefore no adjustment
has been made on transition.
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, except for the medical
segment, see below. Comvita’s range of products primarily include
products with apiary and other natural ingredients.
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.
The Group has six reportable segments as described below:
New Zealand This segment captures both revenue and related
costs for the New Zealand market, excluding exports.
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.
China This segment reports on sales to our China Joint
Venture and our share of the China Joint Venture’s
profits.
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
separate segment.
North America This segment captures both revenue and related
costs for sales to customers of the North American
subsidiar y.
Europe This segment captures both revenue and related
costs for the United Kingdom and European markets.
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
For the 6 months to 31 December 2018 Unaudited
In thousands of New Zealand dollars
New ZealandAustraliaChina*AsiaNorth AmericaEurope
Total reportable
segmentsOther segmentsTotal
20182017201820172018201720182017201820172018201720182017 20182017 20182017
Revenue
13,11615,46519,46516,5356,6263,56221,15716,8308,05319,5533,1284,87571,54576,8206,1966,74177,74183,561
Contribution
4,8585,5633,2893,6077275412,0131,7771,0408,798(407)50611,52020,79234948411,86921,276
Non attributable (other corporate expenses)
(15,890)(16,799)
Financial income and expenses (Note 5)
(1,604)(1,366)
Other income
762650
Share of profit of equity accounted investees (Note 9)
1,2101,460 (412)(346)7981,114
Impairment of equity accounted investees (Note 9)
(101)-(101)-
Net (loss)/profit before tax1,937 2,001
(4,166)4,875
*Reconciliation of China
Segment
20182017
Gross51%
elimination
movement
Total segment
(per above)
Gross51%
elimination
movement
Total segment
(per above)
Revenue 3,3403,2866,6264,641(1,079)3,562
Contribution 156571727379162541
Share of profit of equity accounted
investees
1,210-1,2101,460-1,460
Net profit before tax1,3665711,9371,8391622,001
China sales and contribution includes 51% of sales and contribution eliminated, for inventory purchased from the Group, on-hand at reporting date.
Total assets
In thousands of New Zealand dollars
December 2018
Unaudited
December 2017
Unaudited
June 2018
Audited
Total assets for reportable segments123,019134 ,772120,181
Other investments888
Investment in equity accounted investees40,9917,32830,621
Other unallocated assets162,953154,517167,757
Consolidated total assets326,971296,625318,567
4. SEGMENT REPORTING (CONTINUED)

Comvita Condensed Interim Financial Statements 2019 - P10Comvita Condensed Interim Financial Statements 2019 - P11
5. FINANCE INCOME AND EXPENSES
In thousands of New Zealand dollars
Note31 December
2018
31 December
2017
UnauditedUnaudited
Net gain in fair value of derivatives designated at fair value through income statement
- SeaDragon options10831-
Interest income298222
Net foreign exchange gain-572
Dividend income2-
Finance income1,131794
Interest expense on financial liabilities measured at amortised cost(2,468)(1,863)
Net foreign exchange loss(77)-
Net loss in fair value of derivatives designated at fair value through income statement
- Other (184)-
- SeaDragon options-(297)
- SeaDragon convertible loan notes10(6)-
Finance expenses(2,735)(2,160)

6. INCOME TAX EXPENSE
The current period effective tax rate as reflected in the income tax expense is impacted by a number for 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 New Zealand dollars
31 December
2018
Unaudited
31 December
2017
Unaudited
Issued ordinary shares at beginning of year 45,16442,005
Effect of shares issued during the period1732,843
Weighted average number of ordinary shares at the end of the period45,33744,848
Basic earnings per share (NZ cents)(5.91)8.31
Diluted earnings per share – weighted average number of ordinary shares
Weighted average number of ordinary shares (basic)45,33744,848
Effect of stock entitlements issued1,2142,280
Weighted average number of diluted shares at the end of the period46,55147,128
Diluted earnings per share (NZ cents)(5.91)7.91
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
2018
Unaudited
31 December
2017
Unaudited
30 June
2018
Audited
Prepayments7,0345,8924,924
Loans to equity accounted investees (note 9c)8,67810,92810,790
Loan receivable – related parties (note 9d)1,1881,1321,170
Other receivables 1,4552,6334,967
Total sundry receivables18,35520,58521,851
9. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES
(a) Investments in Equity Accounted Investees comprises:
Country of
Incorporation
Ownership
Interest Held
Balance
Date
Principal
Activity
Kaimanawa Honey Limited PartnershipNew Zealand50%30 JuneApiary and land use
Makino Station LimitedNew Zealand50%30 JuneApiary and land ownership
SeaDragon LimitedNew Zealand9.1%31 MarchFish oil production
Nga Pi Honey LimitedNew Zealand33%30 JuneApiary
Putake Group Holdings Limited New Zealand50%30 June Apiary
Manuka Research Partnership LimitedNew Zealand31.77 %30 June Research and development
Medibee Pty LimitedAustralia50%30 June Apiary
Apiter S.A. (new)Uruguay20%31 JulyManufacturing, selling and
distribution
China Joint Venture, 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
2018
Unaudited
31 December
2017
Unaudited
30 June
2018
Audited
Opening balance – 1 July30,62114,15514,155
Acquisition – Comvita China-16,42016,424
Acquisition – Apiter S.A.9,048--
Acquisition – Other--269
Prior year profit distributed this year -(262)(262)
Impairment – SeaDragon(101)-(681)
Share of profit7981,1141,921
Profit elimination *571(162)(1,623)
Transfer share of loss to receivable5445418
Closing Balance40,99131,31030,621
*The profit elimination (sales less cost of sales) results from the movement of inventories sold from the Group to the equity accounted investee,
still on hand at reporting date.
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS

Comvita Condensed Interim Financial Statements 2019 - P12Comvita Condensed Interim Financial Statements 2019 - P13
9. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES (CONTINUED)
Apiter S.A
On 3 July 2018, the Company acquired a 20% shareholding in Apiter S.A. The consideration for this investment was USD $4,447,000 in cash and
USD $600,000 in shares (NZD: $855,000), which were issued from Treasury Stock. Acquisition related costs of $119,000 have been capitalised
to the carrying value of the investment.
The Company could be required to pay an additional USD $1,115,000 if certain earn out conditions are met. This has been included in the
carrying value of the investment and recognised as a liability at 31 December 2018.
c) Loans to equity accounted investees
In thousands of New Zealand dollars
Note31 December
2018
Unaudited
31 December
2017
Unaudited
30 June
2018
Audited
Loan receivable
Makino
3,7203,2573,548
SeaDragon - convertible note-3,0003,000
Medibee 2,2832,5012,302
Kaimanawa1,1151,2531,128
Putake875665550
Apiter426--
Nga Pi Honey252252252
Comvita China7-10
Total 88,67810,92810,790
All loans to equity accounted investees are repayable on demand except convertible notes.
In thousands of New Zealand dollars
31 December
2018
Unaudited
31 December
2017
Unaudited
30 June
2018
Audited
Interest receivable
Makino
386224185
SeaDragon - convertible note6047362
Apiter5--
Total451271547
The Group’s interest income from SeaDragon on the convertible notes was $167,000 for the six months to 31 December 2018 (31 December
2017: $87,000). Interest income from Makino was $96,000 for the six months ended 31 December 2018 (31 December 2017: $93,000). Interest
income from Apiter was $5,000 for the six months ended 31 December 2018 (31 December 2017: nil).
SeaDragon
With the application of the new accounting standard NZIFRS 9 Financial Instruments on 1 July 2018, the SeaDragon Convertible Loan Note
has been reclassified from a loan recognised at amortised cost with an embedded derivative, to a derivative financial asset – see Note 10 for
further information.
9. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES (CONTINUED)
d) Loans to related parties
Note31 December
2018
Unaudited
31 December
2017
Unaudited
30 June
2018
Audited
In thousands of New Zealand dollars
Loan receivable
Gan Enterprises Ltd (Nga Pi Honey)
567566567
Casa Base Trustees (Putake)621565603
Total 81,1881,1321,170
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
2018
Unaudited
31 December
2017
Unaudited
30 June
2018
Audited
Interest receivable
Gan Enterprises Ltd (Nga Pi Honey)
--2
Casa Base Trustees (Putake)562138
Total 562140
The Group’s interest income on the loan to Gan Enterprises Ltd was $18,000 for the six months ended 31 December 2018 (31 December 2017: $15,000).
Interest income on the loan to Casa Base Trustees was $18,000 for the six months ended 31 December 2018 (31 December 2017: $21,000).
e) Transactions with equity accounted investees
In thousands of New Zealand dollars
Sale of goods and servicesPurchases of goods and services
Transaction valueBalance due fromTransaction valueBalance owing to
31 December 2018
Comvita China 1,6591,342--
Kaimanawa88588519-
Makino --144-
Nga Pi Honey1212572-
Putake--772
Apiter --2 ,174-
SeaDragon30---
31 December 2017
Comvita China 4,6414,341--
Kaimanawa1,3281,32812-
Makino ----
Nga Pi Honey31151-
Putake---151
Extracts ---
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS

Comvita Condensed Interim Financial Statements 2019 - P14Comvita Condensed Interim Financial Statements 2019 - P15
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 as
they include, 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
2018
Unaudited
31 December
2017
Unaudited
30 June
2018
Audited
Derivatives – SeaDragon options 8324591
Derivatives – SeaDragon convertible loan notes2,9953691
Derivatives – assets (hedging instrument) -140184
Total assets3,827968186
Derivatives – liabilities (hedging instrument) (2,500)(2,595)(3,368)
Total liabilities(2,500)(2,595)(3,368)
SeaDragon
A Deed of Amendment and Restatement signed on 3 July 2018 and approved by SeaDragon shareholders on 8 August 2018 amended the
terms of both the Options and the convertible loan notes.
SeaDragon Options
The new agreement extended the expiry date of the $0.008 options to 31 March 2020 and adjusted the strike price to $0.0033.
The Group determines Level 2 fair value through the application of the Binomial Model. Inputs include the share price (a Level 1 input), risk
free rate of the remaining life of the derivative, and the volatility of the share price.
SeaDragon Convertible Loan Notes
Adoption of NZ IFRS 9 Financial Instruments
On adoption of NZ IFRS 9, embedded derivatives can no longer be separated from the host contract and therefore the convertible loan notes
as a whole have been classified as fair value through the Profit or loss. The Group has determined a Level 3 fair value for the convertible loan
notes. The fair value using this method is not materially different to the carrying value of the convertible loan notes at 30 June 2018 and
therefore no adjustment has been made on adoption of the new standard. The convertible loan notes have been reclassified from Sundry
Receivables to Derivatives.
New Agreements signed
A Deed of Amendment and Restatement signed on 3 July 2018 and approved by SeaDragon shareholders on 8 August 2018 extended the
expiry date of the convertible loan notes to 31 March 2020 and adjusted the conversion price to $0.0033. The convertible loan notes now
mature by mandatory conversion to ordinary shares, unless an event of default subsists at maturity time. SeaDragon has the opportunity to
repay the convertible loan notes prior to maturity however given SeaDragon’s current position, and the short term nature of the convertible
loan notes, it is unlikely that the company could, or would wish to repay the convertible loan notes. The mandatory conversion feature of the
convertible loan notes results in this instrument being predominately equity.
As the terms of the convertible loan notes have changed substantially from the date the Shareholders approved the Agreements, the
convertible loan notes have been derecognised and the new instrument recognised. The net movement has been shown in the profit or loss.
The Group determines Level 2 fair value for the convertible loan notes. Inputs include the share price (a Level 1 input) and the present value of
interest payments.
Fair values
The fair value of all financial assets and liabilities is the same as the carrying amount.
11. INVENTORY
In thousands of New Zealand dollars
31 December
2018
Unaudited
31 December
2017
Unaudited
30 June
2018
Audited
Raw materials90,90472,23789,273
Work in progress3,6252 ,1052,866
Finished goods26,22125,46425,980
Provision (1,710)(1,163)(1,627)
Total inventory119,04098,643116,492
12. PROPERTY, PLANT & EQUIPMENT
During the six month period ended 31 December 2018 the group has spent $9,856,000 on acquiring property, plant & equipment. The spend
predominantly relates to the construction of the new warehouse at Paengaroa.
13. LOANS AND BORROWINGS
This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings.
In thousands of New Zealand dollars
31 December
2018
Unaudited
31 December
2017
Unaudited
30 June
2018
Audited
Balance at beginning of period96,70066,50066,500
Drawdown from long term borrowings15,00020,80030,200
Balance at end of period111,70087,30096,700
Represented as:
Current loans and borrowings---
Non-current loans and borrowings111,70087,30096,700
Total loans and borrowings111,70087,30096,700
Less: cash and cash equivalents(8,026)(4,931)(4,947)
Total net debt103,76482,36991,753
The Group was in compliance with banking covenants during the period and as at 31 December 2018.
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS

Comvita Condensed Interim Financial Statements 2019 - P16Comvita Condensed Interim Financial Statements 2019 - P17
14. RECONCILIATION OF THE (LOSS)/PROFIT FOR THE PERIOD WITH THE NET
CASH FROM OPERATING ACTIVITIES
In thousands of New Zealand dollars
December 2018
Unaudited
December 2017
Unaudited
(Loss)/Profit for the period(2,678)3,729
Adjustments for:
Depreciation2,2532,169
Amortisation1,0681,254
Gain on disposal of property, plant and equipment(18)(362)
Share based payments334365
(Gain)/Loss on fair value of SeaDragon derivatives (825)297
Share of profit in equity accounted investees(798)(1,114)
(Loss)/Profit adjusted for non-cash items(664)6,338
Change in working capital items from foreign currency translation reserve(1,167)604
Change in inventories(2,548)(10,787)
Change in trade receivables15,042(6,270)
Change in sundry debtors and prepayments(1,306)(2,559)
Change in trade and other payables(2,373)(4,405)
Change in employee benefits(1,018)(603)
Change in derivatives3,3931,036
Movement of deferred tax in equity338(518)
Change in tax payable(3,270)717
Change in deferred tax(90)(962)
Net cash from operating activities6,337(17,409)
15. RELATED PARTIES
Transactions with key management personnel
Key management compensation comprised:
In thousands of New Zealand dollars
31 December
2018
Unaudited
31 December
2017
Unaudited
Short term employee benefits1,2241,350
Share based payments180202
Total1,4041,552
15. RELATED PARTIES (CONTINUED)
Other transactions with key management personnel
Directors and other key management personnel of the Company control 5.29% (30 June 2018: 5.70%, 31 December 2017: 5.62%) of the voting shares of the
Company.
Other related party transactions
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 16) for some
employees. During the period fees paid to Craigs Investment Partners Limited, recognised in other expenses for mainly secretarial services totalled $18,000
(six months ended 31 December 2017: $20,000).
16. 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.
Movements in the number of share entitlements outstanding under the scheme are shown below:
Entitlements on issue at
In thousands
December 2018December 2017
Number of
entitlements
Weighted average
exercise price
Number of
entitlements
Weighted average
exercise price
Entitlements outstanding at beginning of period2,0577.672,3397. 20
Entitlements granted5786.33--
Entitlements converted to ordinary shares (144)3.67(282)3.78
Entitlements forfeited (325)7. 43--
Entitlements outstanding at end of period2,1667.622,0577.67
17. NET TANGIBLE ASSETS PER SHARE
December
2018
Unaudited
December
2017
Unaudited
Net tangible assets per share (NZ cents)3.263.21
18. CAPITAL COMMITMENTS
Capital commitments for the group totalled $11,700,000 at 31 December 2018 in relation to plantations, the completion of the new warehouse at Paengaroa
and the outstanding consideration for the acquisition of a Queen Bee Breeding Unit.
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS

Comvita Condensed Interim Financial Statements 2019 - P18Comvita Condensed Interim Financial Statements 2019 - P19
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.co.nz
REGISTERED OFFICE
DIRECTORY
COMVITA BOARD OF DIRECTORS
Neil John Craig
Lucas (Luke) Nicholas Elias Bunt
Sarah Jane Kennedy
Murray John Denyer
Paul Robert Thomas Reid
Brett Donald Hewlett
Xin Wang (appointed 18 October 2018)
DIRECTORS
KPMG Tauranga
Level 2
247 Cameron Road
PO Box 110
Tauranga 3140
AUDITORS
SHARP TUDHOPE
Level 4
152 Devonport Road
Private Bag TG12020
Tauranga 3110
SOLICITORS
LINK MARKET SERVICES LIMITED
PO Box 91976
Auckland 1142
SHARE REGISTRY
WESTPAC BANKING CORPORATION
Level 8
16 Takutai Square
PO Box 934
Auckland 1140
BANKERS
DIRECTORY
NORTH AMERICA
Comvita USA Inc.
Comvita USA Inc.,
506 Chapala Street
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
18F Gwanghwamun Building
149 Sejong-daero
Jongno-gu, Seoul (03186) | 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 3845 1400
Freephone 1800 466 392
Customer Service 1300 653 436
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

---

INVESTOR PRESENTATION
CHIEF EXECUTIVE OFFICER, SCOTT COULTER, 021 386 988 | CHIEF COMMERCIAL OFFICER, MARK SADD, 027 707 9698
H A L F Y E A R F Y 1 9
F E B R U A R Y 2 0 1 9

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 the six months ended 31 December 2018;
•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
2

•H1 FY19 results
•Sales and Markets
•Honey Harvest Update
•Debt and Inventory
•Cashflow
•Strategy and FY19 Outlook
OVERVIEW
3

4
H 1 F Y 1 9 R ES ULTS

HALF YEAR IN REVIEW
TOTALREVENUE
$78m
$101m -consolidated view of sales including the China JV*
NPAT -LOSS OF
$2.7m
Figures are based on unaudited results to 31 December 2018.
*$101m assumes 100% of China joint venture (JV) sales are consolidated into the group
$
$
$
POSITIVE OPERATING CASHFLOW (slide 21)
$6.3m
INSIDE CHINA GROWTH(slide14-15)
Sales $26m, +13%,
Gross Margin+27%
$
5

*EBITDA: earnings before interest, tax, depreciation andamortisation
KEYF I N A N C I A LRESULTS
Financial results forthesix months ended
31 December 2018
unaudited
31 December 2017
unaudited
Total revenue$77.7m$83.6m
EBITDA*$1.3m$9.7m
Equity earnings$0.8m($1.1m)
Net (loss) / profitaftertax -NPAT($2.7m)$3.7m
NPAT attributed to non-operating items$0.7m$0.3m
After tax operating (loss) / earnings($3.4m)$4.0m
Earnings per share NPAT (NZ Cents)(5.91)8.31
Dividend per share (NZ Cents)-4.00
6

BRAND & SUPPLY, OPERATING NPAT
H1 FY19 COMPARED TOH1 FY18
•Brand business does not have the US uplift
in H1 FY19 that wasinH1 FY18
•Brandimpacted as China distribution
transitions to a direct model
•Supply impacted in H1 FY19 by very poor
Northland harvest
•Honey harvest improved post Christmas.
This will be reflected in H2FY19
S U P P L Y & B R A N D O P E R A T I N G N P A T S P L I T
7

STRATEGIC FOCUS
8
•Enhance profitability
•Grow EBITDA margins through consistent pricing
strategy, cost control andproductivity gains
•Build Manuka honey distribution
•Directly into China through our China JV
•Evolve distribution to direct relationships with
cross-border e-commerce (CBEC) channels
•North America and UK/Europe
•Supply business
•Minimiseimpact of poor harvest on our apiary
business
•Developpartnerships to provide the capital to
developManuka plantations

9
SA L ES A N D M A R K ETS

NORTH AMERICA
(slides 12-13 )
$8.1m
(2017 : $19.6m)
Figures are based on unaudited results to 31 December2018.Other sales of $6.2m (2017: $6.7m).
•*$26m represents in market sales of the China JV which are not included in Comvita group revenue, as equity accounted(2017:$23m)
•**$3.3m represents the sales from Comvita to the China JV before elimination(2017:$4.6m)
SALES FOR THE HALF YEAR ENDED 31 DECEMBER 2018
EUROPE
$3.1m
(2017 : $4.9m)
ASIA
$21.2m
(2017 : $16.8m)
CHINA
(slides 14-15)
$26m
*
($3.3m**)
2017 $23m
*
($4.6m**)
AUSTRALIA / NZ
(ANZ)
(slide 16)
$32.6m
(2017 :$32.0 m)
10

UNDERSTANDING THE
UNDERLYING TRENDS-KEY
MARKETS
•Group sales and margins normalised for last years US
pipeline fill
•China(JV sales inside China)
•ANZ –Focus on UMF honey
•Brand Strength –a case study
11

GROUP SALESNORMALISED FOR NORTH AMERICAN
PIPELINE FILLINPRIOR YEAR
12
H1 FY19H1 FY18
Sales North America$8.1m$19.6m
•Large North American retailer filled their stores in the first half of FY18in both the United
States and Canada
•No sales to this customer in the USsince thefirst half of FY18 as they overstocked another
brand.All the sales in to this customer in FY19 have been to Canada(where Comvitahas an
exclusive position)
•Normalising for this pipeline fill givesan underlying growth rate for therest ofComvitaof10%

•Secured one of the top US natural products brokers
•Amazon
•Sales grew 15% from $2.0 H1 FY18 to $2.3m H1 FY19
•ComvitaKids Elixirs and Soothing Pops
•Listed in Whole Foods
•Distribution build happening now across other retailers
•Sales start in September 2019 (for winter season in the
US) –will be a FY20 impact
NORT H A ME R I CA N DI ST R I B U T I ON
13

CHINA STRATEGY
14
•Distribution strategy
•Targetinggrowth inside China, online and offline
•Chinabrandstrength will drive Daigou, cross-
border
e-commerce andtourismmarkets
•Pricing strategy –lift margins and harmonise pricing
between offline and online distribution
•Build capability
•Ine-commerce, marketingand retail

CHINA(JV SALES INSIDE CHINA)
15
H1 FY18 to H1 FY19SalesH1FY19Growth
Sales$26m+ 13%
GM$+ 27%
GM%+ 6.9%
•Pricing strategy starting to impact –able to grow andlift margins
•Building platform for growth -hired new key roles marketing and e-commerce
•Marketing investment increasing –in line with strategy
•Pricing strategy –lift margins and harmonise pricing between offline and online

ANZ UMF HONEYSALES-PRICE AND SALES GROWTH
16
•Pricing strategy -
•Lift e-commerce prices inside China to bring them into line with retail prices
•Stabilise prices in the wholesale channels through consistent pricing to customers across ANZ
•Chinese and ANZ pricingand promotional planning aligned
•Starting to positively impact margins–more slowly than in China due to inventory held by
wholesalers impacting FY19 sales, and customer mix
•CBEC Direct sales to Kaola, Tmallglobal, JD Global
•TDI (TmallDirect Imports) under negotiation
•Price and contract negotiations have impacted sales run-rate
H1 FY18 to H1 FY19Growth
Sales+ 29%
GM$+ 37%
GM%+ 3.2%

BRAND STRENGTH -UMFHONEYCASE STUDY
LEADING PHARMACY RETAILER
17
•Market share maintainedwith key competitor entering the market
•Significant price premium and is the dominant brand-Singles day promotion –
Comvitasecured 93% market share –with pricing similarto competitors
•Category ofManuka honey sales grew 51% over the calendar year, Comvitagrew
65% over the same period
Sourced by Aztec data

$53m
$2m
$4m
(2 0 1 7 : $ 2 0 m)
(2 0 1 7 : $ 5 8 m )
P E R S O N A L C A R E
M E D I C A L
$18m
PRODU C T SEG ME NTS OF TOTA L R E VE NU E
(2 0 1 7 : $ 2 m )
H E A L T H C A R E
(2 0 1 7 : $ 4 m )
F U N C T I O N A L
F O O D S
71
%
23
%
2
%
4
%
18
Figures are based on unaudited results to 31 December 2018.

INVENTORY, DEBT AND CASHFLOW
19

•Secure inventory position going into new season
-31 December 2018, $119m
-31 December 2017, $99m
•Finishedgoods
-Consistent at $26m
•Service level delivery remains stable at 96%
•Raw materials
-$104m of net debt
-$91m of raw material stock(mainlyhigh UMF Manuka
honey)
•A strategic focus on working capital management to
reduce net debtis a key focus of FY19
-Currently$95mat the end of January
•Trade receivables down $9m reflectingimproved
collections fromChina JV andlarger customers
INVENTORY AND DEBT
20
Key Balance
Sheet
Ratios
as at
31
December
2018
unaudited
$’000
31
December
2017
unaudited
$’000
Total assets326,971296,625
Total inventory119,04098,643
Trade receivables40,77150,283
Working Capital164,576155,200
Net debt103,76482,639
Total Equity187,006186,850
Net debt to equity ratio55%44%
Weighted average shares on
issue45,33744,848

•Operating cash inflow of $6.3m
(HY 2018 outflow: $17.4m)
•Investment activities $17.9m:
•Capacity building
•State of the art warehousing
capacity at Paengaroa, largely
completed
•Acquireda stake in Apiter,
Propolismanufacturer
•Balance, factory capacity upgrade,
andland forManuka plantations
CASHFLOW
21
Cash flow
movements
31
December
2018
unaudited
31
December
2017
unauditedMovement
Operating cash inflow/(outflow)6,337(17,409)23,746
Investing activities(17,911)(4,175)(13,736)
Financing activities14,63221,838(7,206)
Cash and cash equivalents8,0264,9313,095

HY19 HONEY HARVEST
UPDATE
22

23
•Weather and honey harvest prior to Christmas very poor,
Northland and East Coast apiaries -below average results
•Post Christmas results have been much better
•Overall, honey season better than last year -early estimates
are for circa 20kg/hive, versus 16kg/hive last year, still below
our target of 24kg/hive
•Quality (i.e. UMF activity) of the honey is unknown as very
little of our Manuka crop has been tested to date as it is still
being extracted. Some of the harvest is still in the field.
•It is still too early to make an accurate forecast for the
season, we expect the result to be a loss but much better
than last years result. Anecdotal reports suggest that our
apiary has performed very well compared with other players
in the market.
HONEY SEASON –GAME OF TWO
HALVES
23

ST R AT EGY & O UT LO O K
24

COMVITA STRATEGY: #1 in Manuka Honey Globally
GROW SUPERIOR SUPPLY
•To secure more high
UMF honey
•Breeding and planting
of genetically superior
Manuka plants
•Secure best growing
locations
•Reduce agricultural
risk
BUILD DISTRIBUTION
•To be available where
our customers prefer
to shop
•Increase China &
North America
distribution
•Optimise channel
profitability
•Global price
harmonisation
INVEST IN MARKETING
•So more people know
and love our brand
•Use our core
ingredients for
innovation
•Digital capability &
marketing
25

GROW SUPERIOR SUPPLY
26
•New partnership with MyFarm
•MyFarmprovides capital to fund our supply growth
•Comvita provides beekeeping expertise and unique
Manuka cultivars to provide MyFarminvestors an
acceptable return
•2000ha of plantations will be planted in FY19
•DaykelApiariesacquired -top classqueen breeding operation
will drivecontinued productivity growth. Early reports from
our science program indicate the DaykelQueens we had in
place this season are producing 2kg more honey per hive.

BUILDING DISTRIBUTION
•USA –Whole Foodslistings for kids winter range
•Including Whole Foods, our kids range will be distributed
in over 1000 stores this winter
•China cross-border e-commerce
•Built direct links with key platformsKaola, Tmallglobal,
JD Global
•25% growth for singles daycompared with the prior period
•Europe
•Amazon DE (Germany) launches March
•Onlinelaunch with DM –DrogerieMarkt, Germany’s
largest drugstore chain scheduled for July
•Japan –E-commerce and TV home shopping driving growth
•In the Japanese version of Black Friday, ComvitaUMF5+
was the largest selling itemin Japan on Rakuten, out of
253 million items –it sold more than Nintendo!
27

•New packaging launching in all key markets
•Early sales data looks promising
•Rate of sale in Canada (our first launch
market) is double that of previous
packaging
INVEST INBRAND AND
MARKETING
28

•TobuildbroaderComvitabrandawareness,
twocelebritypartnershipswerelinedupto
createbrandvisibilityandconsumer
engagementsinJanuary2019.
•Intheweekleadingtotheshoppingand
giftingpeakofChineseNewYear,our two
celebritiesreleasedtwopostsofvideoand
imagecontentonpersonalWeiboand
LittleRedBook platforms.
CELEBRITY INFLUENCER
29
13,000+
ENGAGEMENT
11M+
IMPRESSIONS
DuRuoxiWeibopostalongwithhercelebrity
husband’sengagement
ListedasHotWeibotopic
WuXinLittleRedBook videopost,introducing
theproductwithherpersonaluserexperience
TopRecommendedpostonLittleRed Book

OUTLOOK–February 2019
30
•Brand business
•Focus on growing formal channels to China
•Making good progress on direct distribution to CBEC
•Pricing strategy being implemented, good gains inGM$ and GM%in targetchannels
•New distribution coming on stream in the US and Europe/UK will be upside for FY20
•Supply business -honey harvest likely to impact full year earningscompared to our expectations
•Harvest better than last year
•Northern and Eastern regions poor, Southern and Western North Island better
•Apiary business model made some solid improvements –will continue to develop in FY20
•Overall
•Expect full year operating earnings tolower thanlast year
•Will update further once we know harvest quality and timing for new distribution build

Ben Shaw
ChiefMarketing
Officer
SimonPothecary
Chief Sales
Officer
Colin Baskin
Chief SupplyChain
Officer
L E A D E R S H I PTEAM
JulianneKeast
ChiefFinancial
Officer -Acting
SaadaMcNamee
Chief People & Culture
Officer
ScottCoulter
Chief ExecutiveOfficer
MarkSadd
Chief CommercialOfficer
31

SarahKennedy
Independent
Director
MurrayDenyer
Independent
Director
Paul Reid
Independent
Director
BrettHewlett
Independent
Director
NeilCraig
Non-ExecutiveChairman
Luke Bunt
Independent
Director
Xin Wang
Non-Executive
Director
BOARDOFDIRECTORS
32

T H ANKYOU