35% NPAT growth at Comvita
25 August 2022
Strong earnings momentum and delivery on Comvita purpose
Headlines
▪ EBITDA $30.1M +18% and +110 bps vs PCP
▪ Operating profit $20.1M +65% vs PCP
▪ NPAT $12.8M +35% vs PCP
▪ Record revenue $209M +9% vs PCP
▪ Record margin 60.3% +640 bps to $126M +21.8% vs PCP
▪ Record investment in brand $28.1M as long- term brand building continued
▪ Strong top and bottom-line performance:
Top and bottom-line growth in focus growth markets, China and North America
Top and bottom-line growth in Mānuka honey product category
Top and bottom-line growth Ecommerce, Ecommerce 39% of total revenue
▪ Business transformation plan on track
▪ Net debt increased by $21.M since 30 June 2021 to $25.5M, leverage ratio <1x
▪ Positive operating cashflow
▪ 40% reduction in total recordable injury frequency rate (TRIFR)
▪ Fully imputed final dividend of 3.0 cps declared, full year FY22 dividends of 5.5 cps +37%
FINANCIAL RESULTS FOR THE YEAR ENDED
30 JUNE 2022
NZ $M
30 JUNE 2021
NZ $M
VARIANCE
%
Revenue 208.9 191.7 9.0%
Gross Profit 126.0 103.4 +21.8%
Marketing Investment 28.1 24.2 +15.9%
Operating Profit 20.1 12.2 +65.4%
EBITDA* 30.1 25.5 +17.9%
Net Profit after tax 12.8 9.5 +34.9%
Net Debt 25.5 4.6 +$20.9m
Fully Imputed Dividend 5.5 cps 4.0 cps +37%
*EBITDA: Earnings before interest, tax, depreciation, and amortisation
Comvita (NZX:CVT) today announced a strong increase in earnings for the year ending 30 June 2022
at the top end of guidance. Net profit after tax increased by 35% to $12.8M and operating profit
increased by 65% versus (vs) the prior corresponding period (PCP). EBITDA for the period was
$30.1M +18% vs PCP to 14.4% of revenue a 110 bps improvement on the PCP, normalised EBITDA
improved to 16% of revenue. Comvita also reported record revenue of $209M +9% as all markets
bar one returned to top line growth. In addition, Comvita recorded record gross profit of $126M
+22% vs PCP, percentage margin improved by a further 640 bps to 60.3% as its focus on core markets,
channels, consumers and categories continued to drive sales, efficiencies and productivity. Comvita
increased marketing investment to $28.1M a 16% increase vs PCP as it looked to further differentiate
from competition and tell its amazing founding story to discerning consumers around the world.
Page 2 of 5
Net debt increased by $21M since 30 June 2021 remaining below 1x leverage, primarily due to
increasing inventory to offset global supply chain disruption and prepare for forecasted demand in
FY23. The Directors were pleased to declare a fully imputed final dividend of 3.0 cps resulting in full
year dividends of 5.5 cps an increase of 37.5% vs PCP.
Commenting on the performance, Comvita Chairman, Brett Hewlett, said “Three years ago the Board
instigated a strategic review of the business which highlighted the inflexibility of our operating
model, our loss of focus and the knock-on impacts to our performance when unexpected events
occurred. Since then, we have been (and we continue to be) relentless in ensuring we are both
focused and agile. This agility enables the organisation to take advantage of, and respond to,
external impacts (positive or negative) effectively. We couldn’t anticipate the level of impact we
have seen with Covid over the last few years, but as I hope you can see, we are generating real
momentum in our business. We are delighted to announce the second-best earnings of all time at
Comvita, an increase of 34% in earnings per share and a 37% year on year increase in dividends to
our shareholders. The result shared today gives more evidence we can deliver revenue, margin and
earnings growth while investing in long term brand and business building activity.”
Group CEO, David Banfield, says “I would like to start by thanking the whole team at Comvita for the
incredible amount and quality of work that has gone in to delivering the result we are sharing today.
It’s testament to the dedication and focus of our team that we are able to report strong growth in
all our markets (both top and bottom-line), except one, increased investment in our brands, strong
increase in profitability and an increase in dividends to our shareholders. I am proud that the whole
team will become shareholders after delivering this year’s result. In addition to our core commercial
activity, we have taken a big step forward with our aim to be a world leader in ESG and our aim to
be the best employer in New Zealand, including launching our first Integrated Report and audited
carbon footprint. We know that there is still plenty of opportunity to improve further, including
digitisation of the entire business to release organisational time and capability. We are on track to
deliver our 2025 plan of $50M EBITDA.”
Record revenue growth despite material negative Covid impacts
Revenue increased by 9% to $209M, despite material negative Covid impacts particularly in China
where offline sales declined 46% in the period from March to June, due to Covid lockdowns. Comvita
was delighted to report strong top and bottom-line growth and market share growth in its focus
growth markets of China and North America (the number one and two honey markets in the world),
with its long-term brand investment model delivering in these crucial markets. Performance in its
core Mānuka honey category was again strong with double digit revenue and profit growth vs PCP.
All markets showing profitable growth, except one
Of note was all segments and markets within those segments (except one) reported both top and
bottom-line growth, despite continued investment in marketing and building team capability to
enable long term growth, bar one. The breadth and the underlying strength of this performance
gives Comvita real confidence in its long-term opportunity. Comvita’s unique business model with
highly capable and empowered people on the ground making it closer to customer, closer to
consumer, and faster to act, continued to differentiate it from its competition. In Japan Comvita has
seen some market specific headwinds that they are in the process of working through to ensure that
they realise the opportunity in a market that traditionally loves premium, high-quality brands.
Page 3 of 5
Ecommerce sales reach 39% of total sales
In 2020 Comvita set out an ambitious target for 50% of all sales to be through ecommerce by 2025.
This year saw ecommerce sales representing 39% of total sales an increase of 15% vs PCP at accretive
gross margins. Note that for every 10% increase in digital share of total company sales, gross margin
for the group improves by around 100 bps therefore Comvita expects to see a further improvement
in gross margin of around 250 bps by 2025 due to this focus. Comvita also launched its proprietary
global Direct to Consumer ecommerce platform in to five of its markets, enabling it to have one
global view of consumer behaviour and needs. Data and associated insights will be a critical
component of competitive advantage in the future and a key differentiator between ‘exporters’ and
connected and adored brands. Comvita has invested significantly to enhance knowhow and
capability in this area enabling it to continually focus on services and products that add value to its
discerning consumers.
Record margin 60.3% +640 bps
Comvita reported record margin of $126M, +22% vs PCP and 60.3% +640 bps as its focus on core
markets, customers, channels and products again delivered. Comvita’s focus has meant that over
the last two and a half years they have been able to increase gross margin from around 43% to the
result that is being shared today (over 60%). Aside from the positive impact of digital channel growth,
Comvita has further initiatives underway to further improve utilisation and increase recoveries.
Long term investment in brand building continues
In line with its 60:15:20 2025 business plan (60% margin, 15% marketing to sales and 20% EBITDA to
sales) Comvita increased marketing investment by an additional $3.8m or 16% to be 13.4% of
revenue +80 bps vs PCP. Comvita’s marketing investment is part of its transformation plan and
positions Comvita as a premium lifestyle consumer brand. Comvita was particularly excited to launch
a number of co-branding initiatives with other high-quality brands around the world further
increasing brand awareness and association equity.
ESG and carbon neutrality
Comvita has set out its long-term aim to be recognised as a global leader in ESG related performance
including becoming carbon neutral by 2025 and net positive by 2030. Its published Harmony Plan
sets out its commitment on climate action, social impact, bee welfare and supporting biodiversity.
Comvita are delighted to share our greenhouse gas emissions inventory for scope 1,2,3 emissions.
This is also shown at a gross and net level after subtracting the sequestration benefits of our Mānuka
forests. In addition, Comvita have shared their first ever Integrated Report which includes a value
creation model.
Focus growth markets performing strongly
Comvita’s focus growth markets, China and North America, again showed strong performance in this
period with both markets delivering strong top and bottom-line growth and market share growth.
Revenue in mainland China grew by 9% and net contribution by 26% despite material disruption to
offline sales between March and June, with offline sales down by around 46% during this period.
Comvita further grew market share and continue to have a larger share in Mānuka honey than
numbers 2 to 10 combined. Furthermore during this period brand investment increased by a further
$1M as they looked to increase household penetration in key consumer groups. Comvita launched
many local collaborations with high profile brands and signed new partnerships that will help the
long-term potential in China be realised. One local NPD programme delivered huge national reach
with over 217 million views of this product in the first 48 hours.
Page 4 of 5
Comvita North America posted another strong result in the worlds biggest Monofloral Mānuka
honey market with revenue increased by 29% and net contribution by 78%. Retail sales grew by 43%
and digital sales by 12% as momentum continued. Comvita is the fastest growing Mānuka honey
brand in North America and is achieving market share growth in a category where the fundamentals
are strong and significant opportunity exists to grow extensively.
Australia and New Zealand delivers top and bottom-line growth
Comvita are pleased to report that revenue in Australia and New Zealand increased by 7% and net
contribution by 10% despite increased investment in our brand. A highly considered approach has
been taken to work with partners both for national consumption and in the Asian health segment
who want to work with Comvita to amplify their premium brand credentials overseas. This focus and
partnership is paying off for all sides and it’s visible to see that there is great opportunity to build
meaningful long-term mutual opportunities together.
Net debt, inventory and cash
Given ongoing disruption to global supply chains Comvita decided to increase inventory during this
period which has had a corresponding negative impact on net debt. Inventory is expected to stay at
similar levels to this years close throughout FY23. This is only a change until such time that global
supply chains normalise. Comvita stands by its view that optimum inventory levels would be circa
$85M by 2025.
$30.1M reported EBITDA (14.4%) normalised EBITDA 16%
Comvita’s reported EBITDA of $30.1M or 14.4% represents an increase of 18% and +110 bps vs PCP.
The normalisedˡ EBITDA of 16% (+210 bps vs PCP) shows the progress Comvita are making to deliver
their 2025 target of a 20% EBITDA margin.
FY23 guidance
Comvita is forecasting double digit earnings growth in FY23 with a strong bias to the second half.
Ecommerce sales are forecast to be above 40% and are targeting a further 100 bps improvement in
gross margin and marketing. Transformation investment is forecast to increase to $5.5M. Comvita
aim to share a guidance range in Q2 once a clear view on timing of China offline retail re-opening.
Looking forward – premium FMCG ESG brand
Comvita’s 2025 plan is designed to deliver a business model that achieves a GP of at least 60%,
delivers long term investment in its brand by investing 15% in Brand building activity and
delivering a 20% EBITDA margin. This model, underpinned by its aim to be carbon neutral by
2025 and a global leader in ESG, is designed to set Comvita up for long term profitable growth.
The 2025 ambition is underpinned by focus on continued delivery of a three-part plan to:
1: Stabilise performance
2: Transform the organization
3: Build long term resilience and growth
1. Normalised EBITDA reflects EBITDA adjusted for transformation expenditure of $2.4M and non-operating costs of $1.0M. Comvita are targeting to conclude their transformation
spend in FY24, Therefore they have shown a normalized EBITDA of 16% for FY23. (FY22 13.9%)
Page 5 of 5
“These are extraordinary times and as such delivering the second highest earnings result of all time
at Comvita gives me immense pride and confidence in the progress we are making. I love the fact
that while delivering strong financial performance and improvements in all key ratios, we are also
delivering on our purpose that is captured in our powerful Harmony Plan. We have increased our
investment in global projects for social and environmental impact and also invested in local projects
in New Zealand that protect flora and fauna and support local communities. In addition, we have
increased investment in our team, in order to recognise their performance, and also to live to our
aim to be the best employer in New Zealand. This is now the fifth consecutive reporting period where
we have delivered double digit earnings growth at or above guidance: we see real momentum in the
business in all key areas but still recognise how much opportunity we have to improve further. We
remain committed to pay back the support and trust shown by the Board, the extended Comvita
whānau and all our stakeholders” concludes Banfield.
David Banfield Brett Hewlett
CEO Chair
ENDS.
For further information contact:
Kelly Bennett, One Plus One Communications
Mobile: +64 21 380 035
Email: kelly.bennett@oneplusonegroup.co.nz
Background information
Comvita (NZX:CVT) was founded in 1974, with a purpose to heal and protect the world through the
natural power of the hive. With a team of 550+ people globally, united with more than 1.6 billion bees,
we are the global market leader in Mānuka honey and bee consumer goods. Seeking to understand,
but never to alter, we test and verify all our bee-product ingredients are of the highest quality in our
own government-recognised and accredited laboratory. We are growing industry scientific knowledge
on bee welfare, Mānuka trees and the many benefits of Mānuka honey and propolis. We have pledged
to be carbon neutral by 2025 and carbon positive by 2030, and we are planting 1-2million native trees
every year. Comvita has operations in Australia, China, North America, South East Asia, and Europe –
and of course, Aotearoa New Zealand, where our bees are thriving.
---
ANNUAL REPORT
COMVITA.CO.NZ
2022
BLOSSOMING
In the last two and a half years, Comvita
has staged a disciplined fight back
to sustained profitable growth and
committed to become carbon neutral
by 2025. We are encouraged by
the progress made last year and have
delivered stronger performances in
our key markets, increased market
share, enhanced ecommerce
performance and delivered top and
bottom-line growth that collectively
enabled the welcome return of
dividends for our investors and
continued investment in long
-term
value
-creating initiatives. We aim to
be a world leader in environmental,
social and governance (ESG), reducing
our carbon footprint, utilising science
-
based targets and further establishing
our role as the largest private sector
owner / manager of native forests in
Aotearoa New Zealand.
LOOKINGGOOD
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2022
ANNUAL REPORT
CONTENTS
2
SECTION
Exciting future 12
1
SECTION
Strategic snapshot 4
3
SECTION
Performance snapshot
and commentary 20
4
SECTION
Markets and category
performance 32
5
SECTION
Sustainability and ESG 48
WE CAN
CONFIDENTLY
CONTINUE BUILDING
TOWARDS OUR
2025 TARGETS
6
SECTION
Leadership and governance 76
1
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2022
RESILIENCEGROWTH
STRATEGIC SNAPSHOT
STRATEGIC SNAPSHOT
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ANNUAL REPORT
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GLOBALDEMAND
STRATEGIC SNAPSHOT
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2022
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ANNUAL REPORT
—— —— Our total focus across the business is on the delivery of our
three-part plan to stabilise performance, transform the organisation
and build long-term resilience and growth. Our results are gaining
momentum. While we are pleased with progress so far, we recognise
there is significant room for further improvement. At this point, we
are 30 months in to a five-year chapter. Our goal is to systematically
build the foundations for long-term growth and, in the process, build
stakeholder trust.
OUR
FOR BUILDING
A BETTER BUSINESS
STRATEGY
01
STRATEGY
02
STRATEGY
03
STRATEGY
This strategy is about
building long-term
resilience and growth.
Our status on this
strategy is amber,
trending towards
green.
We are proud to report an EBITDA of
$30M, an 18% improvement vs the prior
corresponding period (PCP) and a 35%
improvement in net profit after tax.
We are encouraged that we have again
delivered at the top end of guidance and
all markets excluding Japan are showing
top and bottom-line growth.
As we shared in FY21, our main
transformation focus is on digitisation of
the entire business to improve efficiency,
agility and insight. During this year, we
launched our new direct-to-consumer
ecommerce platform in five markets,
enabling us to have a single source of
global consumer data and a globally
integrated model focused on consistent
KPIs and sharing of best practice. Total
registered Comvita consumers grew
by 13% in FY22, ecommerce revenue
increased by 12% and eccomerce channel
share growth by 15% in this same period.
Our 2025 business model delivers high
gross margin of at least 60% along
with high reinvestment in our brand
(targeting 15%) and ultimately an
EBITDA margin of 20%. This year, we
delivered a 60% margin, a 640 basis
point improvement vs PCP. In addition,
we increased marketing investment to
13%, which helped us drive market share
growth in our key markets of China and
North America. Our reported EBITDA
improved to 14% and our normalised
EBITDA* to 16% of sales.
This strategy
focuses on stabilising
performance.
Our status on this
strategy is green.
This strategy aims to
achieve a transformed
organisation. Our
status on this strategy
is amber, trending
towards green.
STABILISE
TRANSFORM
BUILD LONG-TERM
RESILIENCE AND
GROWTH
* One-off costs and transformation investment of $3.4M
were added back.
01
02
03
SCORECARD
STRATEGIC SNAPSHOT
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COMVITA.CO.NZ
2022
SCORECARD
Results
+14%
GREATER CHINA ECOMMERCE
GROWTH IN NZD
40%
REDUCTION
IN TRIFR**
5.5CPS
FULL YEAR DIVIDEND
FULLY IMPUTED
+37% INCREASE VS PCP
+640BPS
60.3% GROSS
PROFIT
$209M
TOTAL REVENUE
+9% (+$17M) VS PCP
$28M
MARKETING INVESTMENT
+16% OR +$3.8 M VS PCP
$25.5M
NET DEBT
>1* EBITDA
AT A GLANCE
+29%
NORTH AMERICA GROWTH
IN NZD
+15%
DIGITAL CHANNEL
SHARE GROWTH
+15%
MĀNUKA HONEY
REVENUE
12.8M
REPORTED NPAT
+35% VS PCP
$3 0.1M
REPORTED EBITDA
+18% VS PCP
INCOME STATEMENT
For the year ended30-Jun-22
NZ$000
30-Jun-21
NZ$000
Variance
$
Variance
%
Revenue208,909191,73417,1759.0%
Gross profit126,000103,42422,57621.8%
Gross profit %60.3%53.9%6.4%
Marketing28,06224,216(3,846)(15.9%)
Transformation2,3781,172(1,206)(102.9%)
Operating profit20,14912,1837,96665.4%
EBITDA*30,08325,5234,56017.9%
Net profit after tax12,7849,4793,30534.9%
BALANCE SHEET
As at30-Jun-22
$000
30-Jun-21
$000
Variance
$
Variance
%
Net debt25,5444,58320,961457.4%
Operating cashflow2,83024,825(21,995)(88.6%)
Inventory132,157101,00831,14930.8%
EPS*** (NZ cents)18.213.64.634.0%
Weighted average shares on issue70,08769,6404470.6%
* EBITDA and constant currency revenue are non-GAAP measures. We monitor these as key performance indicators and believe they assist investors in
assessing the performance of the core operations of our business.
** Total recordable injury frequency rate.
*** Note that this is basic EPS.
LOOKING
GOOD
SUCCESS FLOWS
RESULTS AT A GLANCE
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2022
RESULTS AT A GLANCE
STRATEGIC SNAPSHOT
Sharing our business model as
an environmentally responsible
premium
FMCG brand has lifted our
long-term resilience and will generate higher
and more consistent growth in the medium
term. Highlighting the positive impact of our
vertically integrated sourcing model and by
lifting our digital experiences, we’ve built new
bridges to global consumers and, through
that, an effective plan to increase household
penetration. Our 60:15:20 plan sets out how
we intend to prosper from this hard work.
——
Exciting
future.
C O M V I T A
2025
Targeting
$50M
EBITDA by
2025
50%
digital sales
Minimum
60% gross
profit
15%
marketing
investment
to sales
ratio
20%
EBITDA
leverage
ratio target
1–1.5
P L A N
ON A PAGE TO
2025
——
To deliver world-leading standards for our
team, our consumers, our shareholders and
our planet, contributing to a world where
bees and people can thrive in harmony.
Reinvest cash to lead industry growth and
consolidation to drive higher standards for
our consumers.
OUR MISSION
Working in harmony with bees and nature
in New Zealand to heal and protect the
world. We all lead / Togetherness /
We love to learn / Kaitiakitanga
OUR PURPOSE
1. Stabilise performance2. Transform organisation
3. Long-term resilience
and growth
STRATEGIC PILLARS / OUR UNRELENTING FOCUS
Comvita as
a premium
fast-moving
consumer goods
lifestyle brand
World-
class digital
engagement
and experience
Data as a
competitive
advantage
Science
and
quality
Organisational
simplification
and efficiency
Becoming a
sustainable,
world-class
organisation
KPIS FY25ALIGNED FOCUS – DELIVER BY FY25
Carbon-neutral 2025 and science-based
targets for GHG reduction
Return on capital employed
– 500 basis points above weighted
average cost of capital
Comvita total shareholder returns
above NZX50 median
Consumer and employee
Net Promoter Score >+7
Build a China market business capable
of delivering 10 years of 10% compound
annual growth rate
Break through in North America
to provide portfolio balance
Digital channels
to deliver >50% of total sales
All market segments growing
(mid single-digit compound annual
growth rate) and profitable
STRATEGIC SNAPSHOT
2
COMVITA PLAN / 2025
TARGETING
$50M EBITDA
IN 2025
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We are determined to leave the world in a
better place. To help that happen, we have
committed to investing 1% of our earnings
every year into projects that support social
and environmental impact globally.
We believe the best interests of all
shareholders are served by the whole team
at Comvita becoming shareholders and by
reinvesting in our team to deliver talent-led,
long-term shareholder value.
1 %
HARMONY
PLAN
——
Our virtuous business model means that,
the more successful we are, the more we
invest in rewilding Aotearoa New Zealand.
For every pot of monofloral Mānuka honey
sold globally, we have committed to plant
one tree. Maintaining and protecting our
Mānuka forests for the long-term will help
us continue to systematically reduce our
carbon footprint.
V I R T U O U S
BUSINESS
MODEL
——
—— The total global honey market is forecast to grow
by 67% or US$6B by 2031. Mānuka honey household
penetration is predicted to grow from 1.5% today
to greater than 3% in the same timeframe. Lifetime
value is predicted to grow by 335% due to the impact
of growth in digital consumer engagement.
Social
Environmental
Global impact
T O TA L
ADDRESSABLE
MARKET
——
GLOBAL HONEY
MARKET REVENUE
TODAY
2022
$
9B
$
15B
2031
MOVING TO
USD
HOUSEHOLD
PENETRATION
MĀNUKA
%
MOVING TO
1.5%
>
3%
LIFETIME
VALUE
GROWTH
$
335%
STRATEGIC SNAPSHOT
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Working in harmony
with bees and nature in
New Zealand to heal and
protect the world
HOW COMVITA CREATES
VALUE FOR ALL
STAKEHOLDERS
——
THE RESOURCES WE EMPLOY
Our unique Comvita
knowledge and know-how,
curated and refined since 1974
The intellectual property and
processes that strengthen
our competitive advantage
World-leading products
See pages 18, 35-47
Improved health and wellbeing
for millions of consumers
See pages 18, 46-47
Committed to climate
action, rewilding and
biodiversity as Aotearoa
New Zealand’s largest
private native forest
owner / manager
See pages 62-65, 70-74
Carbon neutrality
and circularity
See pages 64-65
Leading and progressive
EVP, enabling Comvita
to attract talent from
anywhere in the world
See pages 52-61
Safe, engaged and
empowered team
See pages 52-61
Revenue growth and
financial returns
See pages 10-11, 28-44
Reduced emissions
and waste
See pages 64-65
Driving a brighter future
for our industry
See pages 18-19, 48-49,
62-63, 74-75
Industry leadership
and investment in
our community
See pages 18-19, 48-49,
62-63, 74-75
Top talent globally,
with international
FMCG expertise
and empowered
teams in market
to drive innovation
and consumer
relevance
Arotahi (focus) on
performance and
return on capital
Trusted
connections with
our consumers,
customers and
communities
Digitised, unified
and scalable
organisation
Leveraging
processes, data
and insights to
drive continuous
improvement
Development of
unique cultivars
and patents
Nearly 50 years of
scientific discovery,
embracing and
evidencing the
healing power
of nature
Science, nature and
quality at the heart
of the Comvita
difference
Highest frequency
and range of
testing in industry
and New Zealand’s
only private honey
laboratory to
be government
accredited
Doing business
for good
1% reinvested
for social &
environmental
impact
Leading
apiculturists and
beekeepers from
around the world
with a deep affinity
for their craft and
calling
Our role as kaitiaki (guardians)
for 1.6 billion bees and
6.2 million trees
The Mānuka tree, Mānuka
honey and other nutrients from
the hive hold incomparable
power to protect and heal
Our world-class team
The pure talent and
capability of our people,
with shared (and overt)
passion and ambition
Our growth-supporting
capital structure
Healthy balance sheet and
access to capital to implement
our strategies
Our fully integrated global
business model
Our unique business model
with c 350 people in markets
outside New Zealand making
us closer to our consumers
Global leadership
Underpinned by long-
standing and mutually
valuable relationships
and partnerships
HOW WE CREATE VALUE
THROUGHOUT OUR END-TO-END
MODEL
PROUD TO BE PART
OF THE SOLUTION THROUGH
THE VALUE WE CREATE
OUR UNIQUE OUTPUTS
UNDERPINNED BY KAITIAKITANGA
(GUARDIANSHIP)
Restoring native forests
and biodiversity balance
See pages 62-65, 70-74
Personalised consumer
and customer experience
See pages 36-44
STRATEGIC SNAPSHOT
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2022
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CONSUMER HEALTH
SCIENCE PROGRAMME
This year, we accelerated
our consumer health science
programme with a focus on
clinical trials to evidence the
health benefits of our Mānuka
honey for our consumers.
We formed a new scientific
partnership with the University
of Otago to conduct a ground-
breaking $1.3M clinical trial
investigating the benefits of
Comvita Mānuka honey on
digestive health.
The study, which was awarded
an $875,000 grant from the
High-Value Nutrition (HVN)
National Science Challenge,
will commence recruitment in
early FY23 and is expected to
be reported in FY24. In addition,
we established our Global Clinical
Scientific Advisory Board to
provide strategic advice on our
digestive health programme
including consumer insights and
current treatment pathways and
barriers. The Board comprises
world-leading gastroenterologists
and other medical specialists from
USA, China, UK, New Zealand
and Australia, many of whom sit
on editorial and medical boards
and have active research teams
with multiple publications in
high- impact journals.
Comvita is also an industry
partner in the $4M HVN He Rourou
Whai Painga clinical trial, which
brings together New Zealand’s
leading health researchers and
We are committed to help develop beekeeping skills
from our local communities around the country. We
set ourselves a target for 50% of our apprentices to
be Māori, Pasifika or women, and we achieved 41%.
Commercially, we are excited and encouraged
that the EU Free Trade Agreement (FTA) recognises
the definition of Mānuka and includes unique
acknowledgment of Mānuka as a taonga species
exclusively from Aotearoa New Zealand. The FTA
agreement also removes all honey tariffs in the
EU, making our category more attractive to
consumers as savings are passed on.
The EU honey market is worth about US$1.4B and
is now the second-largest importer of honey in the
world. For us, the EU is still a very small market,
accounting for less than 1% of total revenue,
Over the last two years, we have significantly
increased support of local iwi as we look to live
up to our core value of kaitiakitanga. We have
supported the refurbishment of a local marae
and run a ‘ka pai kai’ team day, providing products
to help with wellness and sustenance within a local
iwi. In addition, we are looking to develop a kūmara
garden with Tapuika, the local iwi, as we recognise
that our Global Support Centre suburb was originally
known as ngā paengaroa o ngā māra kūmara o
Marukūkere (the long boundaries of Marukūkere’s
kūmara garden). Tapuika supported Comvita in the
reopening of the Auckland Wellness Lab and we are
developing plans for partnering in local conservation
projects in the region.
EXTENDING MANA
—— Our commitment to
long-term investments in science
and quality excellence dates back
to 1974 and the establishment of
Comvita Laboratories.
SCIENCE
AND QUALITY
LEADERSHIP
——
—— Mā mua ka kite a muri,
mā muri ka ora a mua
Those who lead give sight to
those who follow, those who follow
give life to those who lead
MANAAKITANGA
——
but we have prepared for this moment setting up
a subsidiary in the Netherlands during the course
of this year.
We’ve been directly supporting the industry-Māori
collaboration to secure legal protection in key
markets for the term ‘Mānuka honey’. Our view
is that Mānuka is unique to Aotearoa New Zealand
and has strong roots within mātauranga Māori,
te reo Māori and Māori culture.
This stance aligns with the global recognition
given to other products closely connected to place,
people, culture and heritage. As well as respecting
Mānuka’s cultural significance, the protection also
gives consumers the assurance that the authentic
product they are purchasing has the qualities and
has been tested to a level that they expect.
food and beverage producers.
The aim of the trial, which includes
Comvita UMF Mānuka honey, is
to show that eating a healthy
diet can decrease the burden of
metabolic diseases such as heart
disease and diabetes.
In addition to these clinical
trials, we also commenced new
health research projects with
the University of Southampton,
UK, for skin health and Plant and
Food Research for immune health.
FOREST AND SUPPLY
SCIENCE PROGRAMME
In our supply research programme,
we commenced a project to assess
the biodiversity benefits of Mānuka
planting and continued our unique
Mānuka breeding programme to
deliver higher-quality UMF honey
from our Mānuka forests. Again,
we are the only brand in our
category that invests in long-term
development of unique Mānuka
cultivars. We also have an ongoing
research partnership with Plant
and Food Research that focuses
on bee welfare and includes
assessment of a range of organic
varroa control treatments.
COMVITA LABORATORIES
Our in-house laboratory, which
reports over 200,000 test results
each year, is independently
accredited by International
Accreditation New Zealand (IANZ)
and recognised by the Ministry for
Primary Industries (MPI), meaning
we can raise official government
export certificates using our own
lab test results. No other company
in our industry has this capability.
This year, we lifted our investment
in our science and quality
functions by 11% to $3.6M, and
over the coming year, we will be
implementing new automation
technology to lift our capability
and capacity further.
Underpinning our industry-
leading science programme
is a comprehensive IP and
commercialisation strategy to
secure proprietary positioning
and deliver future return on
investment. This year saw five new
patents granted (three of which
are in the same patent family) and
12 new patents filed (10 of which
are in the same patent family) in
multiple markets to support our
digestive and skin health research
programmes. We pride ourselves
on quality and have had no product
recall and no non-compliances
resulting in a fine or penalty in
the last 12 month period.
OUR RESEARCH AND
DEVELOPMENT SPEND
Total
$
5.7M*
3% of sales
Consumer health
$
1.2M*
Supply and process
improvement
$
4.5M*
* Qualifying for RDTI.
STRATEGIC SNAPSHOT
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Next
PROVING OUR WORTH
An interview with our Chair and CEO
Congratulations on your strong performance.
After such a great result this year, are you
frustrated that the share price hasn’t shifted
that much?
DAVID: I’m incredibly proud that this year we’ve
delivered the second-highest earnings in Comvita’s
history, especially considering where we started from
in December 2019. What’s more, that performance
has been delivered against a backdrop of global
disruption (both COVID and supply chain) and
huge transformation within our business. Are we
disappointed that this is not reflected in the share
price and market capitalisation? Of course, but we
also recognise that we need to rebuild shareholder
trust and that takes time.
One of the first things I learned in business was
‘control the controllables’. In our case, that means
we need to deliver what we said we would deliver.
With this year’s result, we’ve now achieved five
consecutive periods of double-digit earnings
growth, in line with or better than guidance.
The best way to achieve a higher share price is to keep
delivering in line with our guidance because that’s the
most powerful way that we can prove the material
value gap that exists and the opportunity that lies
ahead for our shareholders.
BRETT: We talk a lot about the need for consistency
and reliability in terms of our results. They seem to
us to be the best proof that we are responding well
to a highly volatile global operating environment.
Indeed, consistency of performance is how we
intend to build confidence and restore belief in
Comvita’s ability to grow, so I want to thank
David and the team for delivering such a positive
result in another very challenging year. For the
past five reporting periods, we’ve either met or
beaten our market guidance.
In terms of how the market responds to that, we
cannot control share price. What we can do though
is remain focused on building sustainable value for
all our stakeholders, and that includes delivering
year-on-year growth in net earnings per share and
a stabilised dividend policy. By consistently delivering
on this, we expect to build confidence in our ability
to grow into the future, even in tough times. And
as that confidence in our future grows, I believe
the share price will come to reflect that sentiment
more and more.
AN INTERVIEW
FOCUSED
ON
WHAT’S
We are delighted to report an
18% increase in EBITDA at the
very top end of our guidance.”
OUR CHAIR AND CEO
SHARE THEIR VIEWS OF OUR PROGRESS
THIS YEAR.
BRETT HEWLETT — CHAIR
DAVID BANFIELD — CEO
CHAIR + CEO
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SNAPSHOT AND
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Where are you in your three-part strategy
to stabilise, transform and build long-
term resilience and growth. What’s ahead
of schedule and where are you lagging?
BRETT: Comvita today sits on a very stable platform.
We have no long-term debt. We are generating
positive cashflows from a materially lower cost base.
Our brand overall is positioned in the premium/luxury
segment, and revenue is growing in all markets bar
one. We have shown incredible resilience to a highly
disrupted supply chain and a trading environment
characterised by high inflation. Of course, we’ve had
to adjust to the constantly evolving situation, but
we’ve also resisted the temptation to cut back on
investing for our future. Quite the contrary. While
delivering growing earnings and a positive cash
position, we’ve also increased our investments into
our brand and marketing activities, continued building
production capacity and efficiency, planted another
2 million Mānuka trees and invested in the capabilities
of our people. We are well poised for growth.
DAVID: I’m delighted with the progress we’re making.
We stabilised and are now accelerating performance
across the business.
Performance-wise, this year, we’re reporting
record revenue of $209M and the second-highest
earnings of all time. All our markets are growing
(top-line and bottom-line) except one, we’ve
increased our ecommerce share of total sales
to 39%, market share is up in our focus growth
markets of China and North America and we have
increased our registered consumer base by 145%.
Furthermore, we have invested in a significant
upgrade to accelerate performance of our owned
global direct-to-consumer (D2C) ecommerce
business including a singular centralised database
of all our consumer data that will become a long-
term source of competitive advantage. We’ve also
achieved real-time reporting of consumer sell-out
in both our online marketplaces (such as Amazon)
and our owned direct-to-consumer sales channels.
We now have global integrated reporting, and in
this report, we share our carbon footprint (across
Scopes 1, 2 and 3) and our integrated value creation
model. I’m also delighted to share the positive
impact of our 1% profit reinvested into causes that
have social impact both nationally and internationally.
I am particularly excited that, this year, we also
launched our global Time to Heal programme, which
creates time for our team in all our markets to take
a day away from day-to-day work to support local
causes in line with our purpose.
Have there been any disappointments?
DAVID: Two areas are behind schedule: winning at
home and the launch of experiential stores around
the world.
Despite our success in growing both revenue and
profit in ANZ this year, we added to our definition
of winning at home as not just having a world-class
presence in Aotearoa New Zealand but also as
being recognised by all stakeholders in New Zealand
(whether shareholders or brand customers) as a
brand that has a positive impact at home both
from an environmental perspective and also as an
employer that believes in and actively reinvests in
our team. In terms of commercial success at home,
we have a long way to go to ensure that consumers
understand the quality difference with Comvita
and that this is reflected in market leadership.
We remain disappointed that the regulatory
standards for Mānuka honey in New Zealand are
below the standards that are needed for export,
and we retain our view that New Zealand consumers
deserve better. Comvita honey for New Zealanders
will always be at the highest possible standard in line
with global expectations.
We also thought we’d be further along with our
experiential stores, but given global disruption to
retail, we took the decision to scale back our short-
term ambition in this space until ‘normality’ returns.
We absolutely believe in the direction and the
experience that we deliver at our Wellness Lab in
Auckland. This is the future of retail in our view, and
we will continue to take elements from that store to
let consumers experience the Comvita difference in
virtual and augmented reality around the world.
Last year, you talked about transformation
at governance level and refreshing the Board
once the new strategy was well under control.
What’s happening on that front? What sorts
of different skillsets will you be looking for?
BRETT: We’re progressing steadily with the evolution
of the Board to suit the changing needs of the
business. This year, Bridget Coates and Yawen Yu
joined the Board and David Banfield also joined
us on the Board, as Managing Director. Together,
these appointments increase our oversight on ESG-
related matters, add to our in-market expertise for
China and North America and more tightly link our
governance and management. We intend to make
another appointment this year. The emphasis has
been on ensuring we have balanced decision making
in a multi-stakeholder global ESG environment. This
diversity of thinking is as important to us as Board
diversity in more conventional ways. My view is it
leads to better decision making and outcomes for
the organisation as a whole. We also adopted a
new Board Charter to better reflect our intentions
in this regard.
Is your digital strategy working as you
expected? Is it fast enough?
DAVID: I love the work we’re doing in ecommerce.
In the last 12 months, we have fundamentally
transformed our capability, transparency and
aspirations in this space. We launched our own
single-source platform that unites our global direct-
to-consumer ecommerce data in one place. We
launched in Australia, New Zealand, USA, the Middle
East and Hong Kong, and we also integrated our
marketplace data (Amazon, Rakuten etc.), which
means we now have near real-time information on
our consumers around the world. We have global
KPIs and an integrated global team that share
best practice and performance and are helping us
accelerate both understanding and consumer needs.
We are aiming to make our Comvita direct-to-
consumer ecommerce site the ultimate experience.
Performance has been strong. Over the course of the
year, we have grown our ecommerce share of total
sales from 34% to 39% of the business and are aiming
for this to be over 40% in FY23. Our total ecommerce
revenue grew by 12%, and our direct-to-consumer
revenue grew by 25%.
The one thing that I have learned in ecommerce is
that it can always be faster and better connected, so
we have signed off further functional developments
in FY23 along with our 2025 strategic goals covering
performance and functionality.
Last year, you invested in your Ma
−
nuka forest
strategy and improved productivity. Did these
initiatives work? What have your measures for
success been?
BRETT: Our investment in Mānuka forest strategy
goes back more than 10 years. We started innovating
in this area with our breeding programme, and that’s
resulted in a steadily improving range of exclusively
owned Mānuka cultivars. We only started large-
scale planting of these unique strains five years ago,
but that’s now gained so much momentum that
our current rate is approximately between 1 and 1.5
million trees per year.
The net tangible benefits of this Mānuka forest
strategy are only starting to materialise, but they
are significant and will become more so over the
next five to 10 years. So far, we have demonstrated
more than a 35% reduction in the cost of goods from
honey produced via this method over conventional
sources, and the quality (measured as UMF) of honey
harvested is consistently higher.
We are also working to quantify the additional revenue
from carbon credits. Whilst the honey harvest volumes
from our exclusive Mānuka forests only represent
approximately 5% of our total annual demand in FY23,
that is forecast to grow to approximately 30–40% by
2030. This long-term strategy provides a very material
competitive advantage for Comvita. It also represents
a hurdle of an estimated 20-year development cycle
for any followers.
DAVID: While our absolute focus is to deliver our
2025 20% EBITDA target, we continue to make
investments that will materially improve Comvita’s
performance to 2030 and beyond. One of these
investments is our forest strategy.
Our base hypothesis for what Mānuka forests will
deliver to the business is 40:60:20 – a 40% higher
yield than traditional sites, a 60% higher quality of
yield and a 20% reduction in cost. But it’s important
to note that these forests take six years to reach a
100% yield, and as such, they will only have a material
This year, we’re
reporting record
revenue, margin and
investment in our brand
and the second-highest
earnings of all time.”
CHAIR + CEO
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group impact in the next five years plus. For example,
we’re forecasting a 35% reduction in Mānuka cost of
sales in 2030.
More immediately, we believe that data linked to
our own apiaries can help us materially improve
operational performance and at the same time
reduce risk. In FY22, we’re delighted to report that
quality is up, volume is up and relative costs are
down in a season that was regarded industry-wide
as average. In addition, we have appointed our first
National Beekeeping Expert to enable us to share
best practice internally and with our long-term
partners. This will help us improve standards for bees,
for our team and for our apiary operations. Our focus
on profitability and long-term viability of sites has
continued as we have exited sites and regions that
we believe do not offer long-term quality potential.
Suddenly, reforestation and carbon offsetting
feel like the new Bitcoin for the ESG set.
Is your strategy different from others,
or are you chasing a lucrative trend?
BRETT: Actually, our strategy for Mānuka forests is
not motivated by the need to offset carbon or to justify
our investments from additional carbon revenue.
It’s intrinsic to who we are and what we do. Through
these initiatives, we are driving value for the Comvita
brand and for our shareholders. We are not shying
away from other initiatives to drive down our carbon
footprint. In fact, we’re well on our way to becoming
a net positive sequesterer of carbon by 2030.
DAVID: We believe we have an incredible business
model that sets us apart from competitors and aligns
with global consumer expectations. We’ve committed
to planting one tree per pot of monofloral Mānuka
honey sold, and to date, we have planted more than
6.2 million trees. Therefore, the more successful we
are, the more we will help rewild Aotearoa New Zealand
and improve the environment for native flora and
fauna. Mānuka is recognised as a nursery plant that
allows other species to thrive under its canopy.
I wouldn’t say we’re chasing a trend. We are
committed to mitigating climate risk, and we believe
we’re creating a long-term virtuous business model
that consumers expect of ethical brands and that
we are on a genuine journey to being carbon neutral
with minimal offsetting. Carbon will have value in
the future, but this is not why we are planting. We
believe we are scratching the surface of the potential
in terms of the global total addressable market for
Comvita. As that potential grows, our forests will
enable us to deliver the highest possible quality at
the lowest possible cost, with the added benefit
of being a net positive sequesterer of carbon.
You must be pleased that the New Zealand
and Australia markets are back in growth
supporting your ongoing performance in
China and North America?
DAVID: Delighted of course that all our markets are
showing positive top-line and bottom-line growth
– except Japan, where we recognise we have work
to do. Our initial work focused on winning in our
biggest markets (China and North America) where
I’m very pleased to report we’ve seen record sales
and market share growth.
Having a unique model with a high-quality team on
the ground gets us closer to customer and closer to
consumer and means we can be faster to act. That’s
particularly important in volatile times of course
and enables us to quickly pivot to meet changing
needs. While we didn’t achieve double-digit growth in
Mainland China this year, this was as a direct result
of the impact of lockdowns on traditional retail (we
lost $5M in April alone due to lockdowns). We were
however, delighted with our performance in digital
channels where we delivered 18% growth against
strong comparable performance in the prior year.
During 618 (the second-biggest shopping festival in
China), we were the numbers 1, 2 and 3 best-selling
honey products and our market share was greater
than participants 2–10 combined. In the USA, we
again showed the size of the opportunity, delivering
29% revenue growth and 78% net contribution
growth and growing market share. In Australia
and New Zealand, our focus has been on sell-
through to highly targeted domestic consumers and
working with partners in local markets to amplify
our messaging and target unique consumers via
Asian health that our in-market (primarily China)
distribution doesn’t yet reach. Having reset the
base last year, it’s good to report both top-line and
bottom-line growth in Australia and New Zealand.
Your equity earnings from your investment
in Apiter are negative. What is the long-term
future for this investment?
DAVID: Apiter is a strategic supplier of Propolis to the
Comvita Group, and Propolis remains a strategically
important category for the group. Whilst Apiter
has experienced some Covid related challenges in
the short-term, we believe the long-term prospects
remain sound.
Given some signs of good underlying
performance across a number of markets
how should we think about the potential
scale of the global Ma
−
nuka honey category?
DAVID: Consider this. In 2022, the global honey
market was valued at just over US$9B, yet in the
number 2 market in the world (USA), household
penetration was only around 32%. Growth is forecast
at 5–7% compound annual growth rate through
to 2031, reaching a total global value of over $15B.
The macros shape up really well. It’s estimated that
current global household penetration of Mānuka
honey is around 1.5%, with the highest household
penetration in any one market of just 3%. Given
positive consumer attitudes to Mānuka honey’s
unique properties, Mānuka has a unique opportunity
to outperform this forecast growth, though the
format of products will undoubtedly change to
reflect changing needs.
Our redefined business model (strong gross margin
and high levels of brand investment of around 15%)
gives us a unique opportunity to create a high-value
global brand that is able to actively target discerning
consumers and enable Comvita to grow market share
and our global leadership further. In addition, as we
invest in science, and in particular clinical studies,
we will be able to talk about tangible benefits to
consumers that are unique to Comvita.
All of this is cause for confidence in the potential of
the Mānuka honey category globally and for Comvita.
In addition, we also share some details in the Annual
Report on the global relaunch of our Olive Life
product, specifically targeting improved cardiac
health. Comvita fresh picked olive leaf accounts for
around 4% of our revenue, yet the total addressable
market for olive is similar to Mānuka honey globally.
We have some stretching goals for olive and look
forward to updating shareholders on progress with
this amazing natural product, backed by compelling
clinical evidence.
We asked you last year about what would enable
Comvita to be categorised as an FMCG/CPG
stock rather than an agri/primary one as
such a re-rating would put the share price on
a different criteria. What are the barriers to
achieving that category switch? Can you ever
escape the agri tag?
BRETT: Our business model is unique, and the NZX
listed marketplace is small. Capital market analysts
have always struggled to know how to categorise
us for that reason. They’ve tended to pigeon-hole us
as agri. Now, the negative connotations associated
with an agri-tag relate typically to low-margin,
high-volume commodities and volatility associated
with harvest/crop risks. However, Comvita’s
product offering and brand positioning is firmly in
the premium/luxury FMCG space. Our vertically
integrated balanced sourcing model as well as our
policy of raw material inventory carry have shown
we can effectively ride seasonal variations in raw
material supply and costs.
The best way for us to earn a more appropriate
rating from analysts based on a more considered
assessment of risk and future growth in returns
is by consistently delivering positive results and
building confidence in our forecasts.
DAVID: We’ve totally re-engineered our business
model to build long-term resilience and growth.
That’s put us on track to deliver our 60:15:20 plan.
The plan revolves around a minimum of 60% GP,
15% marketing to sales ratio and 20% EBITDA
margin. Looking at this year’s result, we’re already
above 60% GP and are reporting an adjusted EBITDA
of 16% once transformation costs, which are due
to finish in 2024, are removed.
This business model is more aligned to premium
FMCG than agri/primary industry. We don’t want
to ignore our ‘agri heart’ – it’s a crucial part of our
unique story – but rather recognise that around 90%
With this year’s result, we’ve
now achieved five consecutive
periods of double-digit
earnings growth.”
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of our earnings come from consumers in market and
only 10% from our apiary results. Naturally, if we were
recategorised, this would have a positive impact on
our earnings multiple and our perceived risk rating.
An acquisition opportunity recently didn’t
come to anything. At the same time, feedback
from the market is that they want you to focus
on your strategy. Why did you feel the need to
chase new opportunities? What did you hope
to achieve?
BRETT: This opportunity was brought to the Board
because it was closely aligned with our core category
growth strategy in one of our target markets and had
the potential to be highly earnings accretive per share.
Management managed a professional process of
due diligence. Ultimately, we could not come to an
agreement on key terms with the vendor and accepted
management’s recommendation to not proceed.
DAVID: This wasn’t a distraction. We saw an
opportunity to accelerate our growth in one of our
key markets in our core categories. We engaged in
exclusive discussions to see if we could agree on value
and were clear on the value that we needed to deliver
to existing Comvita shareholders (year one double-
digit EPS accretion among others). Ultimately, we
could not agree on that dollar figure and chose to
walk away despite the potential strategic merits of
the transaction. I still think we had to look at it and
that our decision was the right one.
You haven’t slowed down. If anything, you’ve
added more things to focus on, putting a lot
of effort into extra things like your Harmony
Plan. Aren’t these things an added distraction
to the prime things you identified in your
2020 report as pivotal to the necessary reset?
BRETT: Nothing stands still. We can’t expect to build
or hold a premium position with consumers unless we
continue to demonstrate that we are worthy of their
trust and loyalty. Increasingly, consumers are making
their purchase decisions, staff are making their
employment decisions and shareholders are making
their investment decisions based on what and why a
company does what it does. The decisions we make
about investments in our Harmony Plan are therefore
just as important as the decisions we make about the
products we sell.
DAVID: We’ve seen real momentum in delivery of
the core focus plan we shared back in 2020. In the
two full financial years since, we’ve delivered the
second and third most profitable years in Comvita’s
history. We’ve also delivered record group revenue
and margin this financial year. Alongside that, we’ve
paid down debt, generated cash and deleveraged the
Group. Now, we see an opportunity to deliver not just
record-breaking results (20% EBITDA by 2025), but
also real positive social and environmental impacts
and to position Comvita as the best employer in
New Zealand. It won’t be easy, but we are not here
for the easy choices. We are here to play our parts
in building an even more special legacy at Comvita.
What effect has COVID had on your
operations in China?
DAVID: COVID had a material impact on our
retail operations in Mainland China. Total offline
sales were down year on year by 46% between
March and June having been up by 8% at the end
of February. In addition, we saw major disruption
to more-established online routes and had to pivot
to meet consumers’ changing channel preferences.
In May 2022, we delivered 44% growth year on
year and grew our market share to over 12% of the
total honey market. Our market share in China was
bigger than the competing brands ranked 2 through
10 combined. I have to call out and recognise the
performance and resilience of our team on the
ground in Mainland China and Hong Kong. They
have performed admirably given some incredibly
tough circumstances and have totally justified
the investment we made back in 2020 to ensure
we had world-class talent on the ground in market.
Andy Chen, our Regional CEO APAC, joined the team
in market from October to March to lead the team
in person. Their combined efforts led to an increase
in net contribution of 26%.
You’ve talked proudly about Comvita being
a New Zealand brand. Is success in your
country of origin still a priority?
DAVID: Aotearoa New Zealand is our home, and we
are proud to represent a 47-year-old Kiwi business
founded in Paengaroa in the Bay of Plenty by Allen
Bougen and Claude Stratford. We believe that
our success at home will be defined more by the
type of business we are and the long-term benefit
of our business model for all New Zealanders: our
reforestation; our protection of flora and fauna,
including native kiwi and whio (blue duck); our plan
to be net carbon positive by 2030; our credentials
as a chosen employer by top talent because of
how we reinvest in the team; and our giving back
to local, national and international causes that
have social impact.
Commercially, we face some challenges at home
because we only produce high-quality product in line
with the highest international standards. This means
we have to compete with local products that would
not meet the international MPI requirements. We’re
prepared to take this challenge on because, frankly,
New Zealand consumers deserve better.
Can shareholders expect dividends
to increase?
BRETT: We’re comfortable with the current dividend
pay-out ratio policy (up to 30% of net operating
result) allowing dividends to grow in line with net
earnings growth. We believe it strikes the right
balance between allowing enough cash reserves to
be reinvested to grow the business and providing a
cash return to loyal shareholders. We have announced
a final fully imputed dividend of 3.0 cents per share,
bringing the total dividend for the year to 5.5 cps,
which represents a 37% increase on the prior year. I’m
sure our shareholders will appreciate this, especially
now, given how much capital values have been
impacted globally.
Where are you with guidance, and what
will be the key elements this year to show
you are on track to deliver your 2025 plan?
BRETT: I’ll let David speak to that, but I would
make the comment that we face some significant
uncertainty and a rapidly evolving global situation.
The Board is confident that we have prepared well for
a tough year that could be ahead of us, but we are
also well poised to move quickly as and when growth
opportunities present. I look forward to shareholders’
ongoing support as we embark on what is likely to be
a roller coaster of a ride in the capital markets over
the next 12 months.
DAVID: For FY23, we're forecasting to deliver double
digit earnings growth, strongly weighted to H2.
We are assuming sales in China to return to normal
in Q2. Key milestones will be top and bottom-line
growth in focus growth markets, channels and
categories with ecommerce share to over 40% for
the full year. Our Transformation investment will be
around $5.5M. We aim to release a guidance range
in Q2. In addition, we are on track to deliver our 2025
EBITDA target of $50M.
Are you worried about inflationary impacts
in FY23? How would a global recession
impact Comvita?
BRETT: I’m comfortable that we are likely to weather
any economic storm better than most. For premium/
luxury brands, consumer demand is generally resilient,
even in depressed or recessionary environments. We
report >60% gross margin and hold almost a year
of inventory that can provide a significant buffer
against spikes in either supply or demand. We are
not immune however to inflationary pressures on our
operating and overheads costs – salaries, wages and
freight – although we’re well placed to pass these on
if required.
DAVID: We decided to increase our inventory in FY22
in order to mitigate the impact of global supply chain
disruption. While this impacted operating cashflow in
the short term, it means we have essentially secured
supply to meet the majority of our 2023 demand
and, as such, we are able to minimise cost of goods
changes that could otherwise have impacted our cost
of sales. We are certainly seeing inflationary pressure
on salaries and wages and freight, but as Brett has
pointed out, we’re confident that we will be able
to pass these on. This is particularly relevant given
that digital sales will represent approximately 40%
of total sales in FY23.
Like every business, we recognise there is potential for
global recession in FY23. But the pandemic has also
proven that, at critical times, consumers around the
world will choose to consume products that help their
personal wellbeing. In particular, they will continue to
choose natural products of the highest quality, even
in times of recession. To mitigate risk, we will continue
with our ‘earn before we spend’ philosophy and
ensure that our investments for growth are directly
aligned to results that we have already banked.
We’ve seen real momentum in
delivery of the core focus plan
we shared back in 2020.”
BRETT HEWLETT — CHAIR
DAVID BANFIELD — CEO
N
O
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26N
O
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27
ANNUAL REPORT
COMVITA.CO.NZ
2022
CHAIR + CEO
PERFORMANCE
SNAPSHOT AND
COMMENTARY
CHIEF FINANCIAL OFFICER REVIEW
It’s very pleasing to report continued
strong financial performance growth
in FY22. Earnings before interest, tax
depreciation and amortisation (EBITDA)
of $30.1M +18% or 14% of sales is at the
top end of guidance. Operating profit
at $20.1M is up 65% over the previous
year. NPAT at $12.8M is up 35%.
Year
OUR
IN
This year’s performance is particularly encouraging
given the material disruption to offline trade in
Mainland China through the last quarter of FY22.
FINANCIAL PERFORMANCE
Reported revenue for the period increased by 9%
or $17.2M in the prior period to $209M. We attribute
this healthy increase to our growth markets, with
North America up $7.1M (or 29% PCP), and Mainland
China performance proved resilient with sales
improved by 9%.
There has been another significant improvement in
gross profit percentage of 640 bps, reflecting an
increase of $22.6M. This is attributable to several
factors. Additional productivity gains continue
to result in basis point improvements. The apiary
business also performed strongly, contributing an
additional $2.9M benefit to cost of sales following
the break-even result of the previous year. We also
saw lower inventory provisioning requirements this
year. These benefits were partially offset by increased
freight costs due to ongoing supply chain disruption.
Ecommerce sales increased to 39% of total sales
($82M), which has also contributed to the increase
in the gross profit percentage as these sales are
margin accretive. This is particularly encouraging
given our 2025 aim for 50% of total revenue to be
in ecommerce.
All other operating expenses increased by $9.5M
or 14%. A portion of this increase is sales related
expenditure, increasing partially in line with sales
by $3.4M or 19%. Included within these expenses
in the current year is M&A due diligence spend
of $1.03M, as highlighted in our interim financial
release. Transformation investment within operating
expenses for FY22 totals $2.4M, up $1.2M on the prior
year. Other increases relate to increased investment
in our people, consistent with our Harmony Plan
objectives, and also investment in our digital single-
source platform.
2021 — 22
REVIEW
CFO REVIEWYEAR IN REVIEW
N
O
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28N
O
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29
ANNUAL REPORT
COMVITA.CO.NZ
2022
CFO REVIEW
PERFORMANCE
SNAPSHOT AND
COMMENTARY
EBITDA
EBITDA at $30.1M increased 18% over FY21 EBITDA
of $25.5M.
In millions of
New Zealand dollars
30 June
2022
30 June
2021
Profit before tax17.113.4
Add back: net finance cost2.32.0
EBIT19.415.4
Add back: depreciation and
amortisation
10.710.1
EBITDA30.125.5
ECONOMIC VALUE DISTRIBUTED
AND RETAINED
In accordance with GRI 201-1, economic value
distributed is $187.1M and economic value
retained is $21.8M.
Economic value distributed is calculated as FY22
operating costs, employee wages and benefits,
dividends, interest, community investments and
tax paid. Economic value retained is revenue less
economic value distributed.
OPERATING CASHFLOWS
The company generated a positive operating
cashflow this year of $2.8M compared to $24.8M last
year. While EBITDA improved, this was substantially
offset by the increased investment in our inventory.
This is further explained below.
Foreign exchange
A foreign exchange loss of $0.6M has been recognised
in FY22 compared with a foreign exchange gain of
$2.2M in the prior year. This represents a PCP swing
of $2.8M, which has been substantially offset within
sales and gross profit. Management of foreign
exchange risk is important to smooth volatility of
earnings in foreign currencies. This is particularly
relevant for our growth markets where we have
exposure to United States dollars and Chinese yuan
renminbi. We are active in managing these risks.
Share of profit from equity accounted investees
Total share of loss this year is $0.2M, with $0.1M
loss from Apiter and $0.1M share of expenses from
the new investment in Caravan Honey Company.
This compares to a profit last year of $1.0M.
Earnings per share
Earnings per share (EPS) for FY22 were 18.24c and
diluted earnings per share were 18.13c. This compares
to 13.61 cps and 13.59 cps respectively last year.
Dividend
With the sustainable profitable growth, the Board
has approved a fully imputed final dividend of 3.0 cps.
This brings the total dividends paid for FY22 to 5.5 cps
compared to 4.0 cps in FY21, a 37% increase.
FINANCIAL POSITION
Capital expenditure and leased assets
Property, plant and equipment valued at
$65M increased by $1.6M in the current year.
This comprised $6.2M of additions, offset by
$4.7M depreciation. Significant additions were
$2M invested in Mānuka forests and $1.8M
in manufacturing process improvements.
Software and other intangibles at $14M
increased $3.2M, which was mostly the result
of an investment in an ecommerce single-source
platform totalling $2.6M.
Leased assets less liabilities decreased by $0.1M,
with additions and modifications totalling $3.5M
offset by depreciation of $4.3M. $2.8M of the
additions related to Mānuka forest leases.
Goodwill
Goodwill of $26.8M is largely made up of $24.9M
related to Greater China and $1.8M to apiaries,
with no change in the current year except for a
foreign exchange movement. The annual impairment
testing did not highlight any impairment risk,
consistent with the profitable performance of
the Greater China segment and the successful
apiary harvest.
Investments
In December 2021, Comvita Limited invested $5.1M
in a new USA-domiciled joint venture, Caravan
Honey Company. This is a strategic partnership with
entertainment and sports agency Creative Artists
Agency to formulate a celebrity-backed lifestyle
brand using the natural healing properties of Mānuka
honey and Propolis for topical use. Our investment
is for 50% of the shares, and $0.1M of start-up
expenses have been equity accounted in FY22.
Gan Supply is no longer trading, and dividends
of $0.7M were received from this investment in
the current year, which were recognised against
the investment balance in the balance sheet.
This relationship is now a long-term supply
agreement arrangement.
Equity accounted earnings of $0.1M loss were
recognised for the Apiter investment, compared
with a $0.2M profit in the prior year.
Inventory
Inventory on hand has increased by $31M from the
prior year to $132M. Given the ongoing disruption to
global supply chains, we made the conscious decision
to increase our inventory holding during this period.
We anticipate that inventory holdings will remain
elevated during FY23 for this same reason.
Holding more inventory in markets has increased
finished goods from $39.2M to $50.0M. Raw
materials have also increased due to the successful
apiary harvest, acquiring more raw honey to support
FY23 demand growth and a reduction in provisioning
required due to the quality of inventory on hand.
Trade receivables
At $27.8M, trade receivables increased by $4.3M
on FY21. This is substantially in line with the
increased sales of $17.2M PCP.
Total net debt
Total net debt at year end, including term debt
facilities less cash on hand, was $25.5M. This increase
on the prior-year balance of $4.6M is consistent with
the inventory build of $31M in the current year.
Current term debt facilities expire on 1 July 2023.
A review of our banking facilities will be undertaken
in the first half of FY23 with appropriate facilities
maintained and extended.
The company has complied with all banking covenants
during the period.
Trade and other payables
Trade and other payables increased by $12.8M to
$31.7M, primarily due to $9.5M of increased trade
creditors related to the timing of honey purchases
and apiary land use payments.
Scalable and integrated processes
and access to real time data will
provide Comvita long term
competitive advantage.”
4
N
O
.
30N
O
.
31
ANNUAL REPORT
COMVITA.CO.NZ
2022
CFO REVIEW
PERFORMANCE
SNAPSHOT AND
COMMENTARY
Near
AND FAR
—— —— All our markets grew both top-line
and bottom-line earnings except Japan.
Market share is up in our focus growth
markets of China and North America,
and our ecommerce also recorded higher
levels of activity and revenue.
The traceability of
the honey ensures the
quality of Comvita
products. That's one
of the reasons I keep
repurchasing their
products!”
Tmall consumer,
China
China
Total revenue in Mainland China increased by
9% with strong online performance offsetting
material impacts of COVID-related disruption.
Brand investment increased by $1M or 8%
and helped drive Comvita market share to 14%.
Our market share was bigger than those of
participants 2–10 in the market combined.
The best Mānuka
honey available.
After trying multiple
brands, I found
Comvita to be
the best tasting
and medicinally
beneficial.”
USA consumer,
Facebook post
North America
Very strong top-line and bottom-line performance
in the world’s biggest Mānuka market saw revenue
improve by 29% vs PCP and net contribution
improve by 78%. Comvita is the fastest* growing
Mānuka brand in combined natural and grocery
channels in the North American market.
I just wanted to
give a massive plug
to the olive leaf
lozenges! ... what an
absolute treasure
to have these
amazing products
on hand.......always.”
Sandy, Victoria,
Australia
Australia and New Zealand
We continued to focus our efforts on developing
our customer relationship with partners who
amplify and support what we stand for as a
brand. It’s pleasing to report that our efforts
are paying off, with revenue improving by 7%
and net contribution by 10%.
OUR
MARKETS
+15%
DIGITAL CHANNEL
SHARE GROWTH
+9%
TOTAL REVENUE
GROWTH
+9%
MAINLAND CHINA
REVENUE TOP LINE
+29%
NORTH AMERICA
REVENUE TOP LINE
+26%
CHINA NET
CONTRIBUTION
GROWTH
+78 %
NORTH AMERICA
NET CONTRIBUTION
GROWTH
+81%
CONSUMER
NPS
* fastest growing brand over US$200K.
MARKET BY MARKET
4
N
O
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32N
O
.
33
ANNUAL REPORT
COMVITA.CO.NZ
2022
MARKET BY MARKET
MARKETS / CATEGORIES
Market
Our unique model includes positioning teams
in our core markets. Here’s what they achieved
t h i s ye a r.
OVERVIEW
—— —— Our whānau now totals
552, of which 342 are in seven
markets outside New Zealand.
FY21 segment revenue share
49%
5%
3%
17%
13%
13%
FY22 segment revenue share
46%
6%
3%
17%
13%
15%
Greater
China
North
America
Rest of
Asia
ANZEMEAOther
+15%+22%
MĀNUKA HONEYUMF 10+
FY22 sales by category
UMF
Honey
Honey
PropolisOliveMedihoneyLozengesOther
69%
5%
5%
4%
7%
5%
6%
FY21 sales by category
66%
6%
4%
4%
7%
7%
6%
CHINA/SEA
193
HKSAR
74
KOREA
32
JAPAN
5
EMEA
6
25
ANZ + OLA
210
MARKET
SUPPORT
CENTRE
7
USA
MARKET
TO
MARKET TO MARKET OVERVIEW
N
O
.
34N
O
.
35
ANNUAL REPORT
COMVITA.CO.NZ
2022
MARKET TO MARKET OVERVIEW
MARKETS / CATEGORIES
GREATER CHINA
Reported currency basis Full year
NZD 000s
This year
June 2022
Last year
June 2021
vs
last year
vs
last year %
Sales96,92493,0763,8484%
Net contribution22,95819,9083,05015%
Net contribution %24%21%3%
MAINLAND CHINA
Reported currency basisFull year
NZD 000s
This year
June 2022
Last year
June 2021
vs
last year
vs
last year %
Sales79,40773,1516,2569%
Net contribution19,32015,2824,03826%
Net contribution %24%21%3%
Greater China is our biggest market globally, with the
total honey market valued at RMB8.3B (NZ$1.8B).
It’s strategically imperative we continue to win here.
Despite COVID-19 having a material impact on
the market performance (disruption due to offline
stores being closed and distribution challenging),
we made good progress in our aim to be recognised
as a premium lifestyle brand, further increasing
market share and brand recognition. We are
delighted that other high-profile complementary
brands have actively sought co-branding and
partnership opportunities, again emphasising
their recognition of our quality and leadership.
At segment level, Greater China revenue increased
by 4% and net contribution by 15% despite increased
investment in our brand. The main headwind in terms
of revenue has been in the cross-border segment
where sales have been materially impacted by COVID.
Our long-term presence and leadership in the
China market has positioned Comvita as the clear
authoritative market leader. Mainland China delivered
revenue growth of 9% and net contribution of 26%
vs PCP despite increasing investment in our brand by
$1M. We have around 200 people on the ground in
China and have further invested in team capability
to set ourselves up for long-term profitable growth.
Our top-line and bottom-line performance in Hong
Kong was extremely encouraging with consumer
demand back to pre-COVID levels despite ongoing
restrictions. Our focus on profitability in Hong Kong
also delivered, with net contribution improving by
53% vs PCP.
C H I N A
——
Hong Kong SAR ecommerce performance
FY21 vs FY22 % difference
LOOKING FORWARD ————
We will continue our transformation and long-term investment in line
with our goal to be recognised as a premium lifestyle consumer brand
and significantly grow household penetration.
GROW TOTAL ADDRESSABLE MARKETBUILDING CAPACITY
01. Creative 1%
honey book released
in November 2021.
02. New spokesperson
for the Mānuka honey
collagen drink.
03. China
International
Import Expo
(CIIE) 2021.
04.
Collaboration
with Grand
Marble, a
renowned
bakery.
05.
‘Comvita
afternoon
tea’ with
Park Hyatt
Shanghai.
ReachConvertEngage
New customer
acquisition
(email sign-up)
+3%
Sessions
+7%
Revenue growth
+31%
Customers purchased
+29%
Total transaction
+156%
New customers
purchase
+170%
CHINA
N
O
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36N
O
.
37
ANNUAL REPORT
COMVITA.CO.NZ
2022
CHINA
MARKETS fi CATEGORIES
We enjoyed strong double-digit, top-line and bottom-
line growth, with 29% growth in revenues and 78%
growth in net contribution.
We are delighted with our performance in North
America and continued momentum across the
business. Our e-commerce sales grew by 12%
at accretive margins and retail by 47% as market
share growth continued.
We invested in our digital platform and our on-the-
ground ecommerce expertise as we looked to over-
deliver in this highly competitive channel. During
FY22, the number of registered email subscribers
for Comvita.com has more than doubled, enabling
us to regularly connect with our loyal consumer base.
Our May World Bee Month campaign saw sales
growth of +41% vs May last year, and we committed
to saving 10 million bees as part of our Comvita
Harmony Plan.
Retail sales grew by 47% vs PCP as we continued
to drive our retail distribution with an additional
1,000 new stores. The last 52-week sell-out data
demonstrates that we more than doubled our
sales within the natural retail channel and grew
our MULO channel sales by 71%. Comvita brand
well-outperformed the Mānuka category.
From an earned media perspective, we garnered
669 million media impressions. We collaborated with
key dieticians, nutritional experts and influencers
on our social media platforms to build and maintain
thought leadership in the Mānuka category. Highlights
included our collaborations with Dr Mark Hyman,
Dr Will Cole and Frances Largeman-Roth. Comvita
also featured in leading magazines, including USA
Today, Yes! magazine (where our November feature
garnered 4 million impressions), Good Housekeeping
magazine, People magazine and Women’s and Men’s
Health online magazines and was a featured gift item
for celebrities in this year’s Oscar Awards.
NORTH AMERICA
——
Reported currency basisFull year
NZD 000s
This year
June 2022
Last year
June 2021
vs
last year
vs
last year %
Sales31,79324,7357,05829%
Net contribution8,4144,7333,68178%
Net contribution %26%19%7%
USA ecommerce performance
FY21 vs FY22 % difference
LOOKING FORWARD ————
With momentum from a successful FY22, we are forecasting continued
double-digit growth in FY23. Our key focus areas include continuing
to grow our digital channels and building our retail presence on shelf
with existing and new customers. We will also have a strong brand
and consumer focus, increasing our investment to grow household
penetration, consumer registration and brand affinity.
BALANCED DISTRIBUTIONLONG-TERM GROWTH
01. Collaborating with
influencers, dieticians and
nutritional experts on our
social media platforms.
02. Partnering
with Dr Mark
Hyman,
internationally
recognised
leader and
advocate in
functional
medicine.
04. Comvita has
outperformed the
category in the latest
retail sell-through data,
in both the natural and
conventional channels.
ReachConvertEngage
New customer
acquisition
(email sign-up)
+145%
Sessions
-20%
Revenue growth
+11%
Customers purchased
-15%
Total transaction
+112%
New customers
purchase
+167%
NORTH AMERICA
N
O
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38N
O
.
39
ANNUAL REPORT
2022
NORTH AMERICA
MARKETS fi CATEGORIES
COMVITA.CO.NZ
An encouraging FY22 performance, with revenue
having improved by 7% and net contribution by 10%
vs PCP, as our focus on partners who help us amplify
our brand investment overseas continued and our
partnership with local specialists targeting ANZ
consumption delivered.
Our Asian health segments performance was strong,
delivering both revenue and profit growth vs PCP,
highlighting the benefit of working with partners
who want to share Comvita’s unique story with
highly targeted user groups. We were delighted
to appear at New York Fashion Week and New York
Times Square with Kiwi-Chinese fashion designer
Claudia Li further growing both global recognition
and brand value.
In domestic channels, we delivered growth in
distribution, revenue and net contribution despite
increasing brand investment by 33% vs PCP to $2.8M.
AUSTRALIA +
NEW ZEALAND
——
Australia and New Zealand ecommerce performance
FY21 vs FY22 % difference
LOOKING FORWARD ————
We continue our goal to deliver long-term profitable growth in our home
markets of Australia and New Zealand. We have exciting plans that we
are confident will enable us to deliver revenue and net contribution growth
and achieve positive impacts, both socially and environmentally, through
our Harmony Plan.
BALANCED DISTRIBUTIONLONG-TERM GROWTH
Reported currencyFull year
NZD 000s
This year
June 2022
Last year
June 2021
vs
last year
vs
last year %
Sales34,69632,4442,2527%
Net contribution11,21110,21899310%
Net contribution %32%31%1%
01. Comvita x Claudia Li
New York Fashion Show
held in February 2022.
03.
Comvita
on Kidspot
engaging
with Kiwi
families.
02.
Woolworths
instore point
of sale.
ReachConvertEngage
New customer
acquisition
(email sign-up)
+77%
Sessions
+67%
Revenue growth
+16%
Customers purchased
+47%
Total transaction
+114%
New customers
purchase
+496%
AUSTRALIA + NEW ZEALAND
N
O
.
40N
O
.
41
ANNUAL REPORT
COMVITA.CO.NZ
2022
AUSTRALIA + NEW ZE ALAND
MARKETS fi CATEGORIES
Across Rest of Asia (including Korea, Japan and
Southeast Asia), we delivered total sales growth
of 8% vs PCP and net contribution was up by 3%
in spite of the headwinds in Japan market (Japan
revenue -15%, net contribution -$1M vs PCP).
Both South Korea and South East Asia markets
achieved double-digit revenue growth as our
investment in our brand and our team continued
to deliver.
It is encouraging to report full-year growth (though
immaterial) in both revenue and net contribution.
Total revenue increased by 1% vs PCP and net
contribution by 137% vs PCP. It’s important to
recognise second-half revenue grew by 32% and
enabled us to record full-year growth despite being
15% down in the first half. We delivered this full-year
performance despite not trading with Amazon for
the majority of the year due to an administration
error (now resolved).
In South Korea, our revenue was up by high double
digits and profits outgrew sales revenue again as we
consolidated our standing as the absolute market
leader of Mānuka honey. Digital sales in South Korea
continued to grow by high double digits supported
by local market expertise. Southeast Asia markets
delivered high double-digit revenue growth, albeit
with flat net contribution, due to our long-term
investment in our brand and team.
All trading channels (except Amazon) showed growth
vs PCP. Investments in the EMEA team capability
will support profitable growth in FY23 and beyond,
including the launch of Comvita Europe, now putting
us in a very strong position to service the EU, the
second-biggest importer of honey in the world. The
new FTA between New Zealand and the EU is a very
timely and positive development.
Our direct-to-consumer business grew by 23% and
database by 104%. During this year, we successfully
launched our Germany direct-to-consumer site,
bringing over 2,000 new customers to the brand
for the first time.
REST OF ASIA
——
EMEA
——
LOOKING FORWARD ————
Focus remains on delivering self-funding profitable growth.
PROFITABLE GROWTHBALANCED DISTRIBUTION
LOOKING FORWARD ————
Consumers in our Rest of Asia segment have used honey as a medicine for
thousands of years, and this segment remains a significant opportunity
for long-term profitable growth. Our immediate focus in FY23 is
on turning around our performance in the Japanese market, which
traditionally loves premium brands.
GROW TOTAL ADDRESSABLE MARKETDISTRIBUTION
Reported currency basisFull year
NZD 000s
This year
June 2022
Last year
June 2021
vs
last year
vs
last year %
Sales27,33725,3461,991 8%
Net contribution6,5856,3672183%
Net contribution %24%25%(1%)
Reported currency basisFull year
NZD 000s
This year
June 2022
Last year
June 2021
vs
last year
vs
last year %
Sales5,1245,060641%
Net contribution833548137%
Net contribution %2%1%1%
Korea ecommerce performance
FY21 vs FY22 % difference
EMEA ecommerce performance
FY21 vs FY22 % difference
ReachConvertEngage
New customer
acquisition
(email sign-up)
+360%
Sessions
-10%
Revenue growth
+30%
Customers purchased
+37%
Total transaction
+100%
New customers
purchase
+18%
ReachConvertEngage
New customer
acquisition
(email sign-up)
+104%
Sessions
-62%
Revenue growth
-23%
Customers purchased
+41%
Total transaction
+101%
New customers
purchase
+402%
REST OF ASIA + EMEA
N
O
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42N
O
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43
ANNUAL REPORT
COMVITA.CO.NZ
2022
REST OF ASIA + EMEA
MARKETS fi CATEGORIES
TOTAL DIGITAL GROWTH +12% VS PCP
DIRECT-TO-CONSUMER +25% GROWTH VS PCP
We made significant strides in our digital
transformation with the launch of our consolidated
digital technology platform. This technology provides
us with a seamless, integrated, real-time source of
information on our global consumers. Throughout
the year, we migrated five of our nine marketplaces
onto the platform, giving us a single source of truth
for over 51% of our direct-to-consumer revenue and
31% of our total global database. This consolidation
has seen the pace of digital learning and insights
significantly accelerate within the business.
A real focus on customer acquisition and retention
this year delivered 13% growth in our global database
and a record 210% growth in new consumers
purchasing Comvita through ‘owned’ channels for
the first time. With the ability to better service our
consumers’ needs through a more intimate and
relevant experience, we saw increased consumer
loyalty, with retention up 4%. That translated into
growth in our average value of order of 3% and an
increase in the percentage of consumers who repeat
purchase of 690 bps on PCP.
Despite continued challenges in the global media
landscape, last mile freight and various market
lockdowns, we achieved significant growth with
total digital sales at $82.058M at 12% growth at
accretive margins. Growth was driven by our focus
growth markets. China was +14% and North America
increased by 11%, with digital sales at 39% of total
revenue, up 480 bps from FY22.
The growth in the China market was mainly from
domestic ecommerce sales, taking market share
from competitors in the two major ecommerce
platforms – Tmall and JD – by emphasising the
unique Comvita business model and quality.
Operational excellence in store operations and
holistically planned digital marketing activities
proved to be the major drivers for our growth.
DIGITAL
TRANSFORMATION
——
+480BPS39%
DIGITAL SHARE OF
TOTAL REVENUE
NORTH AMERICA
DIGITAL SHARE
29%
revenue from
ecommerce
NORTH AMERICA
DIGITAL GROWTH
+11% PCP growth
+
5% D2C growth
+
12% marketplace growth
REST OF THE WORLD
DIGITAL GROWTH
+33% PCP growth
+
38% D2C growth
–
7% marketplace growth
CHINA
DIGITAL GROWTH
+14% PCP growth
+
36% D2C growth
REST OF THE WORLD
DIGITAL SHARE
22%
revenue from
ecommerce
CHINA
DIGITAL SHARE
57%
revenue from
ecommerce
LOOKING FORWARD ————
We continue the course and speed of transformation, with remaining
markets migrating onto the new digital platform, further accelerating
our consumer intimacy and insights. With the new platform, we have
the ability to share global learnings, test and learn at speed and utilise
consumer insight to deliver innovation, relevance and connection.
# NEW USERS# AVERAGE TRANSACTION VALUE
on the entire Propolis range
Save 40%
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on the entire Olive Leaf range.
Traditionally used in Western
Herbal medicine to support
IMMUNE SYSTEM HEALTH.
Save 40%
SHOP NOW
^
Comvita Olive Leaf Extract offers everyday benefits &
immune support. Traditionally used in Western Herbal medicine
to support immune system health, Olive Leaf Extract is gaining
widespread reputation for its year-round benefits.
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SUPPORT HEALTHY IMMUNE
SYSTEM FUNCTION
REDUCE FREE RADICALS
FORMED IN THE BODY
Propolis is a natural antioxidant produced by trees, and
is used by bees to form a protective layer to the bee's
hive. Propolis acts as nature’s best defense to protect
and heal. Scientific evidence suggests that intake of
Propolis can help support Immune system function. As
well as being a powerful natural antioxidant, reducing
free radical damage.
^
Comvita PFL™ 60 Ultra Strength is our
most potent one-a-day Propolis capsule to help
support immune function and provide antioxidants.
SHOP NOW
DISCOVER
Propolis for
Immune Support
DURING RECOVERY
Food
product*
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Cosmetic
product*
Australia
03. Propolis
digital campaign
focused on
immunity
defence and
recovery in
ANZ market.
02. Benefit-
led digital
campaign for
UMF Mānuka
honey.
01. Fun and
engaging
benefit-led kids
honey digital
campaign
in SEA.
DIGITAL TRANSFORMATION
N
O
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44N
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.
45
ANNUAL REPORT
COMVITA.CO.NZ
2022
DIGITAL TRANSFORMATION
MARKETS fi CATEGORIES
With cardiovascular disease the leading cause of
death globally and consumers increasingly looking
for plant-based, natural health solutions, Comvita’s
olive leaf extract is clinically proven to support
cardiovascular health and is an ideal solution for
the global market.
The total addressable market for cardio health
products is a similar size to Mānuka honey. The cardio
health market is worth $14.6B annually, growing at
8.6% as consumers begin to move from reactive to
preventative treatments for cardio health as part
of a holistic wellness lifestyle.
GLOBAL
PREPARING FOR A
LAUNCH
During this year, we took the opportunity to
reposition the olive leaf product away from immunity
and wellness and to prepare to launch it globally
under a new premium wellness brand, Olive Life™,
focused specifically on cardio health. The brand
draws from its founding vision over 20 years ago to
deliver the purest, most-effective olive leaf extract
on the planet so that better heart health is available
to everyone. Today, our Olive Life™ brand and
communications bring science and nature together in
order to have a direct conversation with consumers
on how olive leaf extract can support their cardio
health and wellness.
Launching with a ‘digital first’ strategy on our new
digital platform has enabled Olive Life™ to launch
at speed globally across North America, Asia and
New Zealand. Beginning with direct-to-consumer
channels in July 2022, and expanding into digital
marketplaces and natural channel physical retail
throughout FY23, our communication programme
will continue to be digital first, with premium wellness
content focused on efficacy proven by science to
support cardio health in a plant-based offering.
With an established and growing business in the
Australian market (+22% growth, 71% market
share*), olive leaf remains a significant opportunity
in global markets, with markets outside of Australia
only representing <10% of total Comvita olive leaf
sales in FY22.
www.olivelifedaily.com
* Australia National Pharmacy MAT to 05/06/22 – IRI Scan.
Tomorrow Feels Good
Olive Life | Master Logos ~ 22nd December 2021
PMS 5767cGold Foil
OLIVE LIFE™
5
N
O
.
46
OLIVE LIFE™
N
O
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47
COMVITA.CO.NZ
2022
MARKETS / CATEGORIES
We are deeply committed to acting in line with our
purpose of working in harmony with bees and nature
in New Zealand to heal and protect the world.
Mid-way through FY20, when we commenced this
particular chapter in Comvita’s 48-year history, we
knew a return to sustainable profit and long-term
growth would require significant transformation.
We were determined to deliver beyond a pure return
to profitability and made a pledge to provide ongoing
and progressive leadership in three critical ways:
reinvesting in our team, caring for bees and our
environment, and positive social impact.
Today, we are making good on that promise.
The Comvita Harmony Plan reflects the commitment
by which we are holding ourselves to account and our
ultimate view that, to be successful, we must deliver
positive outcomes for all Comvita stakeholders.
• In FY22, we continued our investment in our team
with the ultimate aim of being recognised as the
best employer in New Zealand and globally. Our
investment in recognition and wellbeing is aligned
to our purpose and recognises the huge efforts to
deliver the turnaround in performance by our team.
• We have reduced our Scope 1 carbon emissions
by 7% and our Scope 2 emissions by 11% in
New Zealand
• We are advocating for bee welfare around
the world and doing our part to support bee
populations and protection.
• We are seeking to tread lightly in our operations
through clear carbon action and restoring our
environment through biodiversity initiatives and
native rewilding.
• We have contributed nearly NZ$280,000 to critical
causes for powerful social and environmental good
– spanning from Aotearoa New Zealand to Africa.
• We have aligned our efforts and impact with the
material topics identified through our stakeholder
materiality review completed in 2021.
As we navigate our way to a bright future, we are also
progressing with care in our journey to show respect
for te ao Māori.
We believe in and stand for the seemingly
impossible – a world where bees and
people thrive together in harmony.”
DAVID BANFIELD,
CHIEF EXECUTIVE
Our
IN
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IN OUR NATURE
5
N
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48N
O
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49
ANNUAL REPORT
COMVITA.CO.NZ
2022
IN OUR NATURE
SUSTAINABILITY,
ESG AND TFCD
This year, we undertook a full stakeholder
engagement and materiality assessment to identify
and understand economic, social and environmental
topics that are most material to Comvita and our
broader stakeholder groups.
Working alongside thinkstep-anz, we engaged
with over 170 stakeholders (internal and external),
using multiple methods of engagement involving
interviews and surveys – 29 initial material topics
were identified.
Materiality
OUR
ASSESSMENT
Priority*New material topicDescription
1Product qualityProviding safe, high-quality products for Comvita customers world-wide.
2Consumer focus
and affinity
Delivering for customers and consumers in a way that meets their needs
and inspires them to join the Comvita movement.
3Employee value
proposition and
engagement
Supporting our people through, health, safety, and wellbeing. Providing
a learning and growth culture and a workplace that mirrors diversity
and inclusiveness.
4Ethical conduct and
sustainable supply chain
Being accountable for end-to-end Comvita global supply chain, including
ensuring third-party partners are ethical, sustainable and transparent in
their delivery.
5Sustainable financial
performance
Ensuring sustainable financial performance and growth to underpin
Comvita’s ability to deliver a positive impact for all stakeholders.
6BiodiversityProactive consideration, application and investment to encourage
greater biodiversity.
7Bee welfareServing as champions for bees and bee welfare, with Comvita directly
supporting bee health and wellbeing.
8Climate actionUnderstanding and adapting to climate impacts on the business and
implementing a carbon emissions reduction strategy.
9Circular economy
and waste
Taking a comprehensive approach to minimisation of waste and recycling
including end-of-life options within product design.
10Mānuka and broader
sector leadership
Stepping up to progressively lead improvement in standards and sustainability
outcomes within the industry.
11Collaboration and
partnerships
Encouraging the development of stronger communities and relationships with
local communities and Māori.
* Based on average scores achieved through paired analysis and overall impact prioritisation.
OUR STAKEHOLDERS
We engaged those who can have a significant impact
on our business or on whom we can have a significant
potential impact as a result of the work we do:
OUR TOP MATERIAL TOPICS
Focusing on topics that create the biggest business impact and hold the strongest stakeholder importance,
we narrowed down the 29 material topics to 11. Our materiality assessment matrix is included for reference
on page 89.
We acknowledge that all 29 topics are important but landed on 11 to provide focus to our efforts and impact.
• Investors/shareholders
• Founder and Comvita
Board
• Global customers
• New Zealand industry
• Iwi
• Local business
community
• Suppliers and
business partners
• Government
• Employees
N
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50N
O
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51
ANNUAL REPORT
COMVITA.CO.NZ
2022
IN OUR NATURE
SUSTAINABILITY,
ESG AND TFCD
EXTRAORDINARILY PROUD
OF OUR ACHIEVEMENTS
We have said from the outset that we are humbled
to have the opportunity to further build on Comvita’s
proud 48-year history and have our own opportunity
to create a lasting legacy in this amazing company.
We have also recognised this chapter for Comvita
will be capability-led, and we have been relentless in
ensuring we make decisions that are both focused
and long term. These are extraordinary times, and it
has been a year characterised by an unprecedented
amount of disruption. We could not have delivered
the exceptional results of FY22 without the hard
work, fortitude and unswerving belief of our teams
around the world.
In FY22, we extended our transformation programme
to build even greater resilience into the business and
set ourselves up for long-term growth.
Our next phase must be underpinned by a
systematic improvement in the way we embrace
and reinforce freedom, performance and
accountability together at Comvita.”
DAVID BANFIELD,
CHIEF EXECUTIVE
PERFORMANCE AND CULTURE
——
15%
OF GLOBAL TEAM ARE
SHAREHOLDERS
20%
VOLUNTARY LABOUR
TURNOVER GLOBALLY
68%
OF 600 PEOPLE
GLOBALLY ARE FEMALE
5+
GLOBAL AVERAGE
YEARS OF SERVICE
100%
ABOVE AVERAGE WAGE (NZ)
AND EQUAL PAY FOR EQUAL
WORK GLOBALLY
552
FULL-TIME EQUIVALENT
ROLES GLOBALLY
(EXCLUDING CASUALS
AND CONTRACTORS)
25%
OF FY22 APPOINTMENTS
WERE INTERNAL PROMOTIONS
36%
OF EXECUTIVES REPORTING
TO THE CEO GLOBALLY
ARE WOMEN
38%
OF COMVITA LTD
DIRECTORS ARE WOMEN
75%
OF COMVITA EXECUTIVES
HAVE INTERNATIONAL
EXPERIENCE
25+
LONGEST INDIVIDUAL
YEARS OF SERVICE
17
REGIONAL APIARY
APPRENTICESHIPS
UNDER WAY
PEOPLE IN FOCUS
——
• We have strengthened our employer brand, and
we are attracting and retaining deep capability
for our hive from around the world.
• We have put consumers and their needs at the
centre of our focus, and we are rallying around
a drive to make sure every decision and action
helps Comvita win in market.
• We have reinforced the value of every role in
our unique end-to-end model; from our first-
class apiarists (leading the way to a stand-
out season), right through to our extensive
FMCG capability across 10 markets (driving
rapid, localised adaptation).
• We are extracting an increasing quality and
flow of data and insights from our integrated
framework, enhancing our ability to test and
learn, monitor performance and scale at speed.
• We have been able to contribute extraordinary
impact in our communities.
It hasn’t been easy, and we recognise there is
still more to do. Our Global Support Centre teams
in New Zealand worked separately/remotely for 77%
of working days in the year in order to protect business
continuity into our markets. We still have significant
organisational capacity and energy to unlock through
further unification and efficiency of our systems and
processes so we can transition our capable people to
more value-adding work. In the context of a volatile
employment landscape world-wide, permanent
labour turnover is up on the prior year at 20% (large
multinational corporation players are now looking
to poach Comvita talent), and we are yet to deepen
our stance on diversity as intended.
In a year like no other, we have achieved a great deal
together, and we have so much to be proud of.
A special thank you to each and every one of Comvita’s
550+ people, who share our belief in the impossible:
a world where bees and people thrive in harmony.
PEOPLE + BEES
N
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52N
O
.
53
ANNUAL REPORT
COMVITA.CO.NZ
2022
PEOPLE + BEES
SUSTAINABILITY,
ESG AND TFCD
PROGRESSIVE AND LEADING EVP
In keeping with the commitments we made in 2020,
reinvestment in our teams has continued. In FY22, we
have further differentiated the Comvita employment
experience and employee value proposition (EVP) in
line with our purpose and brand.
• We committed to purposeful investment in our EVP
through a progressive range of meaningful initiatives.
• We supported eight of our international colleagues
to achieve permanent New Zealand residency
MARKO ČAPARIĆ,
APIARY BRANCH MANAGER
I am proud to work
for a company like
Comvita, who supports
and celebrates all its
employees – no matter
where they are from.
This year, we saw
quite a few in the team
achieve New Zealand
residency through
Comvita funding and
support. It is a big deal
for such employees and
their families to secure
their future here. Some
of our beekeepers are
from Ukraine, and it
was also moving to
physically stand with
them to receive a special
waiata in solidarity for
all that is happening
right now. Especially
for me, because I have
friends back in Ukraine
who previously lived in
New Zealand and helped
achieve great results
for Comvita.
LOOKING FORWARD ————
Aiming for
+2 eNPS in FY23
Growing a learning
organisation
Driving agility
and pace
LEADERSHIPIMPACT
For Comvita to deliver its best we
aim to create an environment where
our people can be at their best.”
HOLLY BROWN,
CHIEF PURPOSE & TRANSFORMATION
OFFICER
PROGRESSIVE AND
LEADING EVP
——
and celebrated this together at our annual Hive
Gathering (a further three joined their ranks at
the end of the year).
• We have written our very own Comvita waiata –
a celebration of who we are, where we have come
from and the journey we are on (see page 56).
• We have launched the Comvita Time to Heal
programme – a paid day for every member
of the global team to step back and make
a positive contribution to their community
or the environment.
CEO, David
Banfield
celebrating
with eight of
our colleagues
who achieved
permanent
New Zealand
residency.
INVESTMENT IN EVP
1.
Committed to global
team as shareholders
Having achieved our budgeted EBITDA for FY22,
we are delighted to be in the position to provide all
Comvita employees globally with the opportunity
to take an equity position in the company through
CVT shares (or equivalent).
2.
Advanced medical and
wellbeing protection
We provide a range of insurances, medical checks
and fitness assessments across our organisation
to suit the needs of our teams.
3.
Re-energising our hive:
long service appreciation
We now offer an extra week of wellbeing leave
over and above statutory entitlements after
five years of service.
4.
Supporting retirement
We will support team members approaching
retirement through a progressive reduction in hours
on full pay from five years prior to retirement date.
N
O
.
54N
O
.
55
ANNUAL REPORT
COMVITA.CO.NZ
2022
PEOPLE + BEES
SUSTAINABILITY,
ESG AND TFCD
Kei konei ma
-
tou te wha
-
nau wha
-
nui o
-
Comvita,
mai te papaka
-
inga o
Paengaroa o nga
-
ma
-
ra ku
−
mara o Maruku
−
kere.
E tu
−
pakari, e tu
−
kotahi,
ki te ha
-
pai i te kaitiakitanga me nga
-
kaupapa
o te rautaki reretau
kia ora ai te hunga ora nga
-
p
-
me te taiao.
E h
-
koi whakah
-
i runga te huarahi kei mua ia ma
-
tou.
He mihi kau ana ki nga
-
hau e wha
-
, o te ao, o te po
-
.
Ko ma
-
tou te
-
nei nga
-
pihi ko
-
tuku o Comvita.
Ko wai koe, nō hea koe. (Tell us who you are and
where you are from.)
Ko Tongariro te maunga.
Ko Taupō-nui-a-Tia te moana.
Ko Te Arawa te waka.
Ko Ngāti Tūwharetoa te iwi engari he hononga hoki
ahau ki Ngāti Kahu, Ngāti Toa Rangatira me Ngāti
Kahungunu Te Wairoa.
No Taupō-nui-a-Tia ahau.
Ko Dave Walters tōku ingoa.
Nō reira, tēnā koutou, tēnā koutou, tēnā koutou katoa.
Kia ora. I’ve lived in the “Bay” for most of my life.
After initially studying civil engineering, I followed
my passion for computer programming to Tauranga.
Unfortunately, the decade was the 1980s (when
floppy disks were still a thing) and there were no
prospects for graduates in the area. Instead of
seeking my fortune in the bright lights of a big city,
I chose to stay close to whānau, and I started my
working life at the local sawmill. To this day, I am
passionate about sustainability and te ao Māori.
O U R
MĀTAURANGA MĀORI
JOURNEY
——
DAVE WALTERS,
KAITOHUTOHU MĀORI
TO COMVITA
AN INTERVIEW
He aha o tūranga mahi mai te wā i tīmata ai koe?
(What have been your roles since starting
with Comvita?)
I left the milling industry in May 2004 (with all fingers
still attached) for a job as Comvita’s storeman. There
were about 40 staff back then, and both Claude and
Alan (Comvita’s founders) were regularly on site.
I took up a desk job as Production/Global Planner
in 2006, and in 2016, I joined the ICT team as an
Operations Analyst (where I discovered the USB had
replaced the floppy disk). I am now Business Systems
Lead for Comvita, and I also devote a portion of my
time as Kaitohutohu Māori. I feel very fortunate to
wear these two hats.
Ka uru ngā uara a Comvita ki te ao Māori? (Do
Comvita’s values fit into the Māori world view?)
Ko ahau te taiao, ko te taiao ko ahau. I am the
environment, and the environment is me. From the
beginning, Comvita has always wanted to operate in
a way that respects the power and wisdom of nature
and seeks to help people feel better and live well.
Bees were the inspiration and Mānuka honey
the medicine. The whakaaro (underlying principle)
for te ao Māori is intrinsically linked to Comvita’s
purpose of working in harmony with nature.
He aha ōu whakaaro o te mātauranga Māori i
ngā wā o mua? (What are your thoughts about
more Māori knowledge being embedded in
Comvita’s journey?)
Culture is like a growing kūmara – only 10% of it you
can see. The other 90% is out of sight unless you put
in the work to uncover it. I’m delighted Comvita has
picked up this wero and eagerly journeyed into the
realm of Māori.
I would love for us to empower our teams with a
deeper understanding of te ao Māori world view
and further enrich our business through diversity
of skillset, knowledge and competencies. We are
taking the steps needed to connect with Tapuika,
the tangata whenua of Paengaroa, and I would love
for this to blossom into a mutually beneficial, long-
term partnership. I hope one day Comvita is seen
as a leader in building authentic whanaungatanga
relationships with Māori.
I have had many proud moments over my 17 years
with Comvita, but the proudest of all was leading
our first mihi whakatau to welcome our new CEO
David Banfield (Rāwiri, Rā) in January 2020. To have
all our kaimahi Māori there front and centre proudly
being Māori and sharing the richness of our culture
was awesome and very humbling. That moment
was priceless.
And in May this year, when we shared the Comvita
waiata written by our team, I was blown away. The
words are so special and authentic to Comvita. The
whakaaro is ringing loudly in this song.
For sure, you need to learn to walk before you can run,
but I believe Comvita is on the right path. As a team
member and shareholder, I look forward to seeing
where Comvita’s journey takes us.
Here we are representing the global family of Comvita,
from humble beginnings,
established within the original ku
−
mara gardens in Paengaroa.
We stand sturdy, and we stand in unison,
as we elevate kaitiakitanga and the values
of our Harmony Plan
for the betterment and health of humanity the bees and the environment.
Globally, we walk together proud as we continue our journey.
We send our greetings to the four winds both in the tangible and intangible worlds.
We are uniquely Comvita.
COMVITA
OUR
WAIATA
N
O
.
56N
O
.
57
ANNUAL REPORT
COMVITA.CO.NZ
2022
PEOPLE + BEES
SUSTAINABILITY,
ESG AND TFCD
3.2
TRIFR
1
-40% VS FY21 (5.3) &
-33% VS TARGET (4.8)
-43%
MANUAL HANDLING
INJURIES
-64%
MVIFR 0.9
2
FY22 TARGET: 1.0
+4%
NEAR-MISS
REPORTING
FY22 TARGET +10%
320
INDIVIDUAL
WELLBEING CHECKS
CHINA & NZ
FY22 NEW
1.5
LTIFR4
-37% VS FY21 (2.4) &
-30% VS TARGET (2.2)
-48%
MUSCLE SPRAIN
INJURIES
-41%
REPORTABLE
INJURIES
3,4
FY22 TARGET -10%
SAFETY + WELLBEING
OF OUR PEOPLE
——
Note: Global performance measures (excludes contractors)
1. TRIFR – total recordable injuries per 200,000 hours worked globally (excludes contractors).
2. MVIFR – Motor Vehicle Injury Frequency Rate – motor incidents that occurred in New Zealand per 200,000 km travelled.
3. Recordable injuries include injuries requiring medical treatment or lost time combined.
4. LTIFR – lost time injuries per 200,000 hours worked (excludes contractors).
5. Labour hour assumptions have been made based on expected hours worked rather than actual hours worked to calculate injury frequency rates.
BUILDING A STRONG PLATFORM TO LIFT
THE SAFETY, HEALTH AND WELLBEING
OF OUR PEOPLE
We believe everyone has a right to expect to return
home from work at the end of each day safe and well,
and we have maintained a relentless focus on safety
priorities during FY22. Despite strong improvements
in our safety metrics and performance year on year,
these are extraordinary times and we wanted to
challenge ourselves to go deeper in terms of our
safety culture.
Beekeeping can be physically demanding work at
times, and we know manual handling related injuries
are our largest injury cause category at Comvita
making up nearly a third of all injuires reported.
In addition, the COVID-19 pandemic has had a
significant impact on people’s health and wellbeing.
COVID-19 has also irrevocably changed our normal
patterns and ways of working. We believe this is
why we did not meet our near miss reporting target
in FY22, and we've also identified a need for an
elevated focus on mental wellbeing. Consequently,
we have re-evaluated our self-assessed safety
maturity to a lower score globally (-0.2 vs PCP).
This will be an area of focus in FY23.
FIT FOR LIFE PROGRAMME
In FY22, we introduced a specially tailored suite
of medical and fitness assessments across our
apiary operations.
In line with the demands of beekeeping, these physical
functional tests, covered lifting tolernance, mobility
and range of motion, hand-gripping and aerobic
fitness. They are designed for early detection of
physical health issues or concerns.
86% completed the programme, and we are now
in a stronger position to support our teams to
meet the physical requirements of their roles.
WELLBEING ASSESSMENTS
Regular health assessments are a great starting
point for recognising the implications of lifestyle
habits and tracking progress of wellness initiatives.
We have introduced optional checks for our
teams in the areas of cardiovascular, metabolic
and mental health. With an initial focus in China
and New Zealand, we were able to cover more
than 70% of Comvita people in FY22.
Many described the checks as life-changing after
receiving significant results or identification of
risk. Our aim next year is to achieve participation
rates >80%.
1.
Health assessments
2.
Focus areas
3.
Life-changing
N
O
.
58N
O
.
59
ANNUAL REPORT
COMVITA.CO.NZ
2022
PEOPLE + BEES
SUSTAINABILITY,
ESG AND TFCD
CONTINUOUS IMPROVEMENT
• Material system improvements made to
increase insights and data capture and
remove manual processes.
• Improved online access to safety portal, driving an
increase in utilisation across key procedures by +59%.
• Operational safety performance dashboards
introduced to improve the visual tracking of
key safety performance indicators.
SAFETY MATURITY – BENCHMARK RESET
This year, we reviewed our safety maturity model
based on feedback to promote improved accountability
and visibility of maturity step improvements, creating
a more rigorous baseline for FY23.
Our maturity model reflects multiple factors
– building on a foundation of compliance, step
changing towards behavioural safety leadership.
Raising the bar on ourselves across nine operations
teams in New Zealand resulted in a self-assessed
drop in our safety maturity index by 0.2 vs FY21.
APIARY EXTRACTION: RISK ASSESSMENT
• In FY22, we undertook an extensive risk assessment
of all Comvita apiary extraction machinery
against the AS/NZS 4024 standard for safe
use of machinery.
• This covered all four honey extraction lines, with up
to 10 specialised machines operating on each one.
Hazard rating numbers have now been calculated
for each major machinery component.
• Improvement areas will be closed out before the
next honey extraction season.
LOOKING FORWARD ————
Safety culture
maturity +0.5
Elevating our
focus on mental
wellbeing
External
benchmarking
ISO 45001
TRANSPARENCYIMPACT
100%
ALL EXTRACTION
MACHINERY RISK
ASSESSED IN NZ
-14%
REDUCED LOST-TIME
INJURIES (DAYS)
VS FY21
-0.2
SAFETY MATURITY
INDEX VS FY21
DAVE CROFT,
PROJECT ENGINEER,
PAENGAROA
CMSE® – CERTIFIED MACHINERY
SAFETY EXPERT
It was a privilege to lead our
machinery safety review.
Knowing my manufacturing
background and passion
for safety, Comvita
supported me to become
an accredited Safety
Machinery Expert, which is
a win/win because we now
have inhouse capability to
assess complex equipment
against international safety
standards. I loved working on
site with our apiary teams
to deep dive into this part
of the business and combine
our knowledge and expertise.
A large and complex project
delivered: together we have
built a clear line of sight to
reducing machinery safety
risks, as aligned to best
practice. Of course, there is
always more we can do to
ensure safety comes first,
so I am looking forward
to where we go next!
N
O
.
60N
O
.
61
ANNUAL REPORT
2022
PEOPLE + BEES
SUSTAINABILITY,
ESG AND TFCD
COMVITA.CO.NZ
PASSIONATE ABOUT BEE WELFARE
Bees are essential to the survival and flourishing
of our natural ecosystems, but sadly, global
bee populations are in decline. In many areas
around the world, an alarming number of hives
are exterminated in swarming seasons. On the
flip side of this trend, it’s getting increasingly
more difficult for a swarm to survive in the wild
due to varroa mite and pesticides. At Comvita,
we are driven to help where we can. We are
scaling up our environmental activations, and
we delivered 14 bee welfare experiences and
education sessions over the past 12 months.
BEE RESCUE INITIATIVES
• Building on the success of our Bee Rescue campaign
in the USA, in 2021 (5 million bees saved), we have
launched a second campaign in 2022 partnering
with local beekeepers and rescuers to save hives
set to be terminated.
• Our target this calendar year is 10 million bees.
At the time of going to print, we had saved an
estimated 6.75 million bees with a few months
to go in the programme.
FIGHT BACK AGAINST
VARROA DESTRUCTOR
• Varroa destructor is a parasitic mite that infests
honeybee colonies, leading to disease in the hive.
• Comvita has a comprehensive varroa
management programme that limits the
impact of this mite on our bee colonies.
• We also have an ongoing research programme
in collaboration with Plant and Food Research
focusing on bee welfare. In FY22, we studied
the safety and effectiveness of a range of
organic treatment options across 120 hives.
Findings from this study will be used to inform
future research projects and improve our varroa
management programme and help us reduce
resistance to traditional methods.
WASP WIPEOUT
• Wasps cause a devastating impact on biodiversity,
predating on bees and native wildlife.
• Comvita is the primary Wasp Wipeout project
sponsor for Hawke’s Bay. We have funded the
deployment of more than 1,000 traps covering
1,709 hectares on 12 public conservation areas.
$123K
INVESTED IN BEE
RESCUE & WELFARE
OPERATIONS
1.1K
WASP TRAPS SET
AND MONITORED
12.2M
BEES RESCUED
AND REHOMED
KAITIAKITANGA /
CARING FOR BEES
——
N
O
.
62
PEOPLE + BEES
N
O
.
63
COMVITA.CO.NZ
2022
SUSTAINABILITY,
ESG AND TFCD
72T
METAL DRUMS
RECYCLED IN
NEW ZEALAND
NEW
4T
SINGLE-USE
PLASTICS REPLACED
WITH RECYCLABLE
MATERIALS
GLOBALLY
NEW
$154K
INVESTED
IN GHG
MANAGEMENT
+200% VS FY21
90.8T
NZ WASTE DIVERTED
FROM LANDFILL
+245% VS FY21 (26.3T)
-2.0T
SHRINK WRAP
REMOVED FROM
SUPPLY CHAIN
+6,000% VS
FY21 (+0.4T)
89%
NZ PACKAGING
PURCHASED IS
RECYCLABLE
NEW BASELINE
1.13M
NATIVE TREES
PLANTED IN FY22
1,017
HECTARES REGENERATED
IN FY22
-60%
FY22 REDUCTION
IN HERBICIDE
APPLICATION
We have also reduced the use of herbicides, typically
needed to protect young native seedlings from
invasive weeds. By reducing the amount of spray
(replacing with sheep grazing), we have estimated
a 60–70% reduction in chemical application.
C A R B O N
MANAGEMENT
——
REWILDING
——
OUR NET GHG EMISSIONS TOTALLED 26.6KET
– AIMING TO BE CARBON NEUTRAL BY 2025
We are forging ahead at speed in terms of
climate action as we position Comvita to be
net carbon positive by 2030. In the last 12 months,
we have set science-aligned reduction targets
and have invested more than NZ$150,000 in GHG
management and other sustainability initiatives,
and we are pleased with the progress we are
making in partnership with thinkstep-anz:
• In FY22, we reduced Scope 1 carbon emissions
in New Zealand by 7% and Scope 2 emissions
by 11%.
• We have set science-aligned reduction targets
to reduce absolute Scope 1 and Scope 2 GHG
emissions in New Zealand by 50% by 2030.
GHG inventory data has been in accordance with, and audited against: ISO 14064-1:2018 – Greenhouse Gases
Part 1. GHG Protocols - A Corporate Accounting and Reporting Standard & Corporate Value Chain (Scope 3)
Accounting and Reporting Standard.
Emissions source
Total
tCO
2
e
% of
scope
% of
total
Scope 1: Category 1 Direct GHG1,022100%3%
Mechanical sources1,066
Stationary combustion19219%1%
Mobile combustion79077%2%
Fugitive combustion242%0%
Non-mechanical sources162%0%
Scope 2: Category 2 Indirect emissions from imported energy
(location based)429100%1%
Electricity consumption (location based)429100%1%
Scope 3 total31,140100%96%
Category 3: Indirect GHG emisisons from transportation3,40111%10%
Category 4: Indirect GHG emisisons from products used by organisation26,82586%82%
Category 5: Indirect GHG emisisons associated with the use of products
from the organisation8663%3%
Category 6: Indirect GHG emissions from other sources480%0%
Optional reporting (business travel and employee commuting)1080%0%
Total Scope 1, 2 and 3 GHG emissions32,591N/A100%
Biogenic emissions and removals(5,971)
Net GHG emissions (excluding optional)26,620
• We have completed our first full global GHG
inventory, capturing end-to-end business activities
across a global value chain in alignment with
GHG Protocols and ISO 14064.
• We have developed a bespoke design packaging
tool with reference to the Ellen MacArthur
Foundation Material Circularity Indicator model.
• We have nearly completed our life cycle assessment
to evaluate the environmental impacts of
monofloral Mānuka honey through all stages
of the supply chain.
• We have calculated the volume of renewable
materials in our supply chain at 186,000kg with
non-renewables at 250,000kg. We have targeted
and delivered progressive improvements in
recyclability, circularity and waste management.
FORESTS + NATURE
N
O
.
64N
O
.
65
ANNUAL REPORT
COMVITA.CO.NZ
FORESTS + NATURE
SUSTAINABILITY,
ESG AND TFCD
2022
Retaruke-Kurua Farms is a 1,000 hectare property
in Taumarunui that has been owned and operated
by Jason and Cherie Smalley with Warren and
Jen Bird for the last 20 years. Originally based
on a traditional beef and sheep farming model,
Retaruke-Kurua has evolved to include honey
production and now a Mānuka forest development
programme in partnership with Comvita.
“Initially our approach to managing the property
was a very traditional model focused on managing
scrub (Mānuka), which meant clearing existing wild
Mānuka, while aiming to maximise productivity
through beef and sheep,” Jason says. “This brought
added input costs around fertiliser to enable the
farming model outputs to be successful. But our
efforts also made us very aware that native Mānuka
seemed to grow very well in this environment.”
Jason and Cherie have always had a very
straightforward view about optimising land usage
and outputs: understand and work with the land
use that best suits the property. “Flat land must be
used for food production,” they say. But having seen
the viability of Mānuka, particularly on marginal
land areas, they decided to allow hives from a local
beekeeper onto their property. “It was pretty small
scale initially,” says Jason. But after a while and
noticing the evolution in the industry around Mānuka,
the couple engaged with Comvita in 2016 to assess
managing a hiving operation on the property.
“We agreed a land access agreement to place
hives,” says Jason. “For us, there were a number of
factors that ticked the box with Comvita. Working
with a publicly listed company brought confidence
around transparency for how the partnership
would work as well as accountability and ownership
of results. We were also pleased with the level of
focus and support that Comvita brought to the table
in terms of health and safety and their willingness
to work with us on track development to enable
access to the Mānuka resource. Then, once we got
started, we were encouraged by the success we
achieved with Comvita managing hive operations
each season.”
SEEING THE OPPORTUNITY FOR THE FOREST
When they learned of a Mānuka forest development
project that Comvita had entered into at Makino
to establish Mānuka plantings on a large scale,
Jason and Cherie decided to diversify into planting
and developing new Mānuka forests. “It was a bit
of a lightbulb moment really,” they say, “and it was
absolutely based on the positive financial results we
were seeing from the hive management programme.”
Selecting Comvita as partners was an easy choice,
according to Jason. “Comvita had the skillset and
expertise to support successful establishment of a
Mānuka forest operationally, coupled with Mānuka
cultivar plant material sourced from the Comvita
breeding programme. Equally, their forest model
focused on developing marginal land, which aligned
with our philosophy around best use of land.”
A
PARTNERSHIP BUILT
O N T R U S T
——
A big part of BlueSky Honey being able to attract
more landowners is because of the confidence
we have in the Comvita partnership and the
Comvita Ma
−
nuka forest development model.”
JASON AND CHERIE
RETARUKE-KURUA FARMS
SUSTAINABILITY,
ESG AND TFCD
FORESTS + NATURE
FORESTS + NATURE
N
O
.
67
COMVITA.CO.NZ
2022
N
O
.
66
ANNUAL REPORT
BLUESKY MĀNUKA FOREST DEVELOPMENT
The decision to work in partnership with Comvita
to develop 400 hectares of Mānuka forest on
their property is one both Jason and Cherie are
happy with. Working with the Comvita forest
development team, the planting programme itself
was completed over three years using local planters
and local contractors and has resulted in a high
plant establishment and survival rate of 97%.
Along the way, the couple have learned some valuable
lessons. For example, the sheep grazing programme
has been a positive factor enabling control of
grass when the Mānuka seedlings are becoming
established while minimising the use of herbicide.
This practice has since been deployed at other
forest developments.
Results for the FY22 harvest have been very
encouraging, with good-quality UMF tonnage
and positive financial results. Planned hive numbers
for the coming season will increase to complement
the maturity of Mānuka resource on the property.
BLUESKY BROADENS ITS HORIZONS
Following on from the successful partnership
on their own property and recognising the
opportunity to generate sustainable returns
through the Comvita partnership via marginal
farming land, Jason together with business
partner Tim Hence established BlueSky Honey,
which contracts neighbouring properties to
Comvita supply and hive management.
“A big part of BlueSky Honey being able to attract
more landowners is because of the confidence we
have in the Comvita partnership and the Comvita
Mānuka forest development model. We are very
attached to the land, very attached to the people
who live in the community – a lot of families have
been here for 100 years. It was really important to
us that we made land-use choices that supported
growth in our local community. We are committed
to building a sustainable farming model, supporting
the resilience of the community and the local
service providers.”
Jason and Cherie acknowledge that BlueSky
Honey would not exist without the support of
the local landowners.
The BlueSky Honey-Comvita Mānuka forest footprint
continues to grow. There are now a further 200
hectares on a nearby property and a 400-hectare
development on another neighbouring property,
which is Comvita owned.
Longer term, Comvita, BlueSky and the surrounding
landowners all recognise that they have the
opportunity to produce high-quality Mānuka honey
at scale, which in turn will have positive effects on
the land and nature and for the local community.
“This area has proven itself to be very capable of
producing high-quality Mānuka UMF honey at a
consistent yield,” says Jason. “There will be seasonal
peaks and troughs, but due to the increasing scale of
the overall operations, having these forests provides
some degree of insulation against variations that can
arise during the season.”
Jason has seen a real willingness to focus on
partnership outcomes. “Comvita management
are very proactive, supportive and transparent
when issues arise. The focus is on working through
the problems together.”
Access to quality labour remains an ongoing problem.
“One of the challenges facing the bee industry is
access to highly skilled quality staff,” explains Cherie.
“Without great people, we will fail. We identified
this, as did Comvita, who then launched their very
successful apprenticeship programme two years ago
to address the skill shortage.”
PARTNERS IN THE COMMUNITY
As part of the partnership, several members of the
Comvita team have worked with Jason and Cherie
from the start. “Comvita’s Head of Apiary Trevor
has been part of the BlueSky journey since the
beginning and has played a significant role. More
recently we’ve been working with Blake, the Head
of Land, who has played a key role in developing the
planting on the third-party neighbouring property.”
Jason echoes Cherie’s comments. “We have seen the
willingness of key people at Comvita such as David
and Tracy to come down to the property to see what
is happening firsthand. It makes us feel part of the
bigger Comvita operation. To us, that speaks volumes
about their commitment to our partnership which is
very reassuring and appreciated.”
Both Jason and Cherie appreciate the community
support provided by Comvita. “It means a lot to us
and the community to have Comvita pick up the
baton to support the operation of the school bus.
Kaitieke School is a small school with 16 on the roll
(highest has been 22), but the school is key to the
community. We’ve fundraised in the past to cover
the costs of the school bus. While it is not a lot of
children, it does have to cover a lot of ground to cover
the large distance between properties in the valley.
It is great to have Comvita support. All the kids know
about Comvita,” they say.
“We are also very encouraged that Comvita have
bought a neighbouring property. That displays a real
willingness to be part of the community through
support of local initiatives and it means we have
Comvita staff regularly travelling into the area.”
Jason and Cherie’s hope is that, longer term, Comvita
will become an even larger and permanent part of the
community, perhaps with Comvita beekeepers living
in the area.
SHARED COMMITMENT
Care for the environment is another commitment the
partners share. “Both Comvita and the landowners
are very focused on achieving the best possible
environmental outcome.” While Jason admits it was
not a priority initially, the establishment of resident
blue duck and kiwi populations has been a bonus.
“It’s nice to know these native species to this area,
both under some environmental pressure, are now
being supported. We are currently talking to Comvita
about a blue duck and kiwi recovery programme,
which Comvita are keen to partner with us on.”
A RESPONSIBLE CHOICE
Jason and Cherie’s longer-term aspirations are clear.
They want BlueSky Honey to be one of the largest
suppliers of Mānuka honey to Comvita.
As for anyone considering the Comvita Mānuka
forest development model, Jason offers the following
advice: “Don’t be afraid of dealing with a corporate.
We did have some initial reservations, but all our
concerns have been allayed. Don’t be afraid of being
part of the process and sharing in their success.”
Jason says the corporate partnership has provided
some real security. “The arrangement doesn’t
undermine what we do as farmers. In fact, Mānuka
is a very good choice for marginal unproductive land.
Particularly if you have an area on the property that
is challenging, take some time to explore the potential
of Mānuka and consider partnering with Comvita.
Look at it with open eyes, understand it. I genuinely
believe it’s a responsible choice with a great story
attached to it.”
Tracy Brown, Chief Operations Officer at Comvita,
adds, “The success of our partnership with Jason
and Cherie has enabled us to engage more deeply
with the whole community. It’s an arrangement
that is working for everyone: the bees, the land,
the community and our livelihoods are all better
off for what is happening in this area.”
Jason, Kaysha
and Cherie
Smalley.
Jason with Blake
Irving (Comvita
Head of Land)
review Comvita
Mānuka planting.
N
O
.
68N
O
.
69
ANNUAL REPORT
COMVITA.CO.NZ
2022
FORESTS + NATURE
SUSTAINABILITY,
ESG AND TFCD
We know our Mānuka forests positively support
natural ecosystems by providing bees, birds and
fauna an undisturbed home to flourish, land to
heal and companion natives to bloom. This year,
we have activated several research projects and
joined with conservation partners to scale up our
focus on protecting nature in need.
ECOLOGICAL BENEFITS
OF MĀNUKA PLANTING
As part of our planting programme, we aim
to enhance the natural ecological balance and
biodiversity of our forests. This year, Comvita has
undertaken a research project with the University
of Auckland funded by Callaghan Innovation to
assess the ecological impacts of Mānuka forest
planting. Detailed case studies are being undertaken
to compare Mānuka plantings at different stages of
development and assess biodiversity at the sites. The
findings will help us measure and track the abundance
and diversity of terrestrial and aquatic invertebrates
as well as the presence of key insectivores. To date,
the work has also identified the presence of multiple
insect and bird species as well as endangered long-
tailed bats.
CREATING SAFE HABITATS
Kiwi are under threat in Aotearoa New Zealand.
After discovering more than 20 breeding pairs thriving
in Mānuka forests established by Comvita, we have
been determined to do what we can to help reverse
population decline for this iconic species.
In FY22, we formed a significant partnership with
Save the Kiwi with the joint goal of developing
a progressively greater area of kiwi-safe habitats
together every year. Our Kiwi predator management
network now extends across 1,671 hectares and is
growing (Comvita supports more than 8K hectares
of predator management overall).
8,730
HECTARES UNDER
PREDATOR
MANAGEMENT
3
AT-RISK OR
ENDANGERED
SPECIES ON OUR
RADAR
28KM
KIWI PROTECTION
TRAPLINES
6K+
SAMPLES TAKEN
TO SUPPORT
BIODIVERSITY
RESEARCH
The Comvita team
with Save The Kiwi
rangers releasing
Taika the kiwi
into a predator-
free sanctuary in
Wairākei, Taupō.
BIODIVERSITY
PROTECTION – SAVE
THE KIWI
——
N
O
.
70N
O
.
71
ANNUAL REPORT
2022
FORESTS + NATURE
SUSTAINABILITY,
ESG AND TFCD
COMVITA.CO.NZ
The Comvita Harmony Plan sets out
our commitment to make lasting and
positive contribution to communities
around the world.
We have made a pledge to invest 1%
of our EBITDA every year in worthy
social and environmental causes, and
in FY22, we brought this to life with
an investment of nearly NZ$280,000.
GLOBAL
IMPACT
——
1%
OF EBITDA
INVESTED
FY21FY22
JAPAN
More than NZ$10,000 in
premium products donated
to the hard workers of the
Japanese Red Cross Society.
$10,000+
PRODUCTS
CHINA
1,000 units of Propolis oral
spray and 500 packs of
Mānuka honey lozenges
donated to Shanghai hospitals.
—
On World Nurse Day (12 May),
Comvita COVID Care Kits
delivered directly to doctors
and nurses.
1,000
UNITS
500
PACKS
TONGA
$25,000 to the Tonga Tsunami
Relief Fund to support on-the-
ground recovery.
—
Hives, beekeeping equipment
and expertise to support
farm and garden regeneration
in Tonga.
$ 25,000
RELIEF
KENYA
Spanning Southern Africa and East Africa, Saving the
Wild WOMEN is our lifetime commitment to women
empowerment and cultural diversity. Our inaugural
project begins in Kenya, continuing the race to secure
wild land in the Kimana Wildlife Corridor. We’re
betting on young Maasai women living in Kimana to
lead from the front and gain financial independence
through beekeeping and the arts.
Currently aged between 16 and 21, over the next four
years they will be mentored by world-class Comvita
beekeepers and entrepreneurs, and in four years’ time
they will be handed the keys to the business or, in this
case, the bee houses.
KENYA
Proud to continue our work as the primary sponsor
for Saving the Wild. In FY22, we provided much-
needed funding to support the protection of 2 million
wildlife in the Kimana Sanctuary, including the last
of the world’s endangered tusker elephants.
We have also provided our expertise to support the
local Maasai people to use beekeeping as a natural
boundary for wildlife corridors and generate income
that is reinvested to support educational outcomes
for the Maasai people.
COMMUNITY
N
O
.
72N
O
.
73
ANNUAL REPORT
COMVITA.CO.NZ
2022
COMMUNITY
SUSTAINABILITY,
ESG AND TFCD
For Aotearoa New Zealand, we have undertaken
some impact initiatives at a national level as well
as providing community impact in all the locations
where we have apiary branches (all new in FY22).
Comvita’s FY22 sponsorship commitment helped
the For the Love of Bees team to:
AOTEAROA NEW ZEALAND
IMPACT
——
210
COMVITA
EMPLOYEES
3.5K
CARE PACKS
DONATED
17K
WHĀNAU MEMBER
RECIPIENTS
$60K
PREMIUM
PRODUCT VALUE
23
SCHOOLS IN LOW-
DECILE AREAS
NATIONAL PARK/MANAWATŪ
In a reasonably remote part of the North Island
near the Retaruke River, Comvita has committed
to supporting the operational costs of running
the local school bus for 16 children in the area.
We will also provide education days to foster
bee and nature awareness.
WAIRARAPA
Our Wairarapa apiary branch discovered their local
hockey club in Greytown did not have the means to
provide safety gear for their senior women’s team.
We provided a donation to cover the full cost and
allow the women to play.
WHANGANUI
The Kimiora Trust provides respite for individuals
and families in Whanganui that have been affected
by suicide, providing a place to rest and heal. Our
Comvita Whanganui apiary team is supporting
the development of tunnel houses on the property
for sustainable healthy food growing, which also
supports their kids’ healthy lunch programme.
CENTRAL NORTH ISLAND
Our Central apiary team identified a need at the
Te Awamutu chapter of Riding for the Disabled
(RDA), and their donation will fund the upkeep
of an RDA pony for a year. Our centrally located
beekeepers are looking forward to a day with
the RDA team and all the kids they support.
HAWKE'S BAY
Our apiary team in Hawke’s Bay stepped in
to rescue the football season in Haumoana –
a rural town of around 1,300 people. Unexpected
circumstances left the Haumoana Football Club
short of resources and with no choice but to cancel
registrations. Our donation funded all 14 junior
teams aged 5–12 for the season.
“The care packs were amazing –
we hardly ever have honey. It was like
Christmas in our whare [house] when I got
home – thank you so much.”
ROTORUA STUDENT
WITH AROHA FROM COMVITA
Bringing our Harmony Plan to life
On 6 May, around 200 Comvita employees travelled to Te Pā Tū | Tamaki Māori
Village in Rotorua for a day of extraordinary impact. Together, we packed more
than 3,500 Comvita care packs of premium honeys, pops and lozenges – all to
be donated within the Bay of Plenty region, which is home to our market support
centre. Each pack was personalised with a hand-written message by the Comvita
team and distributed by Ka Pai Kai (a charitable trust providing school lunches
to low-decile schools in the Rotorua/Eastern Bay of Plenty area). We were blown
away by the community feedback and expressions of thanks and impact for the
kids and their families.
“The communities where we distributed the care packs are in very low-decile
socio-economic areas and were very well received with heartfelt thanks from each
and every one. I sincerely hope other companies heed the example set by Comvita
and show they also care about people more than profit ... and give back like you all
have.” Joe Dorset, General Manager, Ka Pai Kai
“COVID took a lot from us as a community and a country – it is really heartfelt
to see that there is a company that still cares about people and not only dollars.
Comvita has really raised our community spirit, and we now know that we are not
alone.” School Principal
SUPPORT
87
GRADUATES THROUGH
THEIR EARTHWORKERS
EDUCATION PROGRAMME
GROW AND HARVEST
1.6T
OF SUSTAINABLE, ORGANIC,
EDIBLE PRODUCE
DIVERT
3.6T
OF FOOD SCRAPS FROM
LANDFILL
SELL
3.6T
OF SEEDLINGS
NATIONAL
For the Love of Bees. We were proud to sign up
For the Love of Bees (FTLOB) as Comvita’s second
major Harmony Partner. FTLOB is a charitable
trust that provides education about regenerative
horticulture as a tool to feed communities,
sequester carbon and provide diverse forage
for pollinators to thrive.
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COMMUNITY
SUSTAINABILITY,
ESG AND TFCD
Leadership
AND CORPORATE
GOVERNANCE
We’re progressing steadily with the evolution
of the Board to suit the changing needs
of the business.”
BRETT HEWLETT,
INDEPENDENT DIRECTOR, CHAIR
BOB MAJOR
Joined 17 October 2019
INDEPENDENT DIRECTOR,
MEMBER OF SAFETY AND
PERFORMANCE COMMITTEE
BRIDGET COATES
Joined 20 October 2021
INDEPENDENT DIRECTOR,
MEMBER OF AUDIT
AND RISK COMMITTEE
YAWEN WU
Joined 20 October 2021
DIRECTOR
DAVID BANFIELD
Joined 20 October 2021
MANAGING DIRECTOR
ZHU GUANGPING
Joined 17 October 2019
DIRECTOR
LUKE BUNT
Joined 24 July 2014
INDEPENDENT DIRECTOR,
CHAIR OF AUDIT
AND RISK COMMITTEE
SARAH KENNEDY
Joined 23 July 2015
INDEPENDENT DIRECTOR,
CHAIR OF SAFETY AND
PERFORMANCE COMMITTEE
BRETT HEWLETT
Joined 18 October 2017
INDEPENDENT DIRECTOR,
CHAIR
LEADERSHIP
OUR BOARD
KEEPING US FOCUSED
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LEADERSHIP
LEADERSHIP,
GOVERNANCE
AND APPENDICES
The Board’s Charter sets out the governance
principles, authority, responsibilities, membership and
operation of the Board of Directors. This governance
statement outlines the main corporate governance
practices as at 24 August 2022. The full statement
is available to view at www.comvita.co.nz.
COMPLIANCE
The Board has adopted codes and policies relating
to the conduct of all Directors, executives and staff,
taking guidance from the NZX Main Board Listing
Rules relating to corporate governance and the
NZX Corporate Governance Code.
For the purpose of Listing Rule 3.8.1, the Board
considers that, as at 24 August 2022, the governance
structures, principles, policies and practices it has
adopted are in compliance with the NZX Corporate
Governance Code dated 10 December 2020
(NZX Code) except to the extent set out in the
following pages.
The company’s Constitution, the Board and
Committee Charters, codes and policies referred
to in this section are available to view at
www.comvita.co.nz.
GOVERNANCE PRINCIPLES AND GUIDELINES
Principle 1 – Code of Ethical Behaviour
Directors set, observe and foster high ethical
standards. The company expects its Directors,
officers, and employees to act legally, to
maintain high ethical standards and to act
with integrity consistent with Comvita’s
policies, guiding principles and values.
A Director-specific Code of Ethics sets out these
standards for all Directors and can be found in the
Appendix to the Board Charter on the company’s
website. Further, the company has a Code of Ethics
applicable to all Directors, officers and employees
in accordance with Recommendation 1.1 of the NZX
Code, a copy of which is available on the website.
Training on ethical behaviour is incorporated
within the company’s induction programme,
with refresher training provided periodically.
Company rules, which all employees and officers
are expected to adhere to, provide clear guidance
across a range of ethical and legal matters to ensure
high standards of performance and behaviour
are maintained when dealing with the company’s
customers, suppliers, shareholders and staff.
Specific policies are also available on the
company’s website as noted below.
Mechanisms are provided within the company-wide
Code of Ethics and general company rules for the
safe reporting of breaches of ethical standards
or other policies or laws, and the consequences
of non-compliance are made explicit.
Trading in Comvita securities
Directors, officers and employees are restricted in
their trading of Comvita securities and must comply
with the company’s Financial Products Dealing
Policy, which is available on the company’s website.
The policy provides guidance on insider trading rules
and outlines process and approval requirements for
dealing in Comvita securities.
Comvita makes the documents listed below available
on its website.
Constitution/ChartersCodes/Policies
ConstitutionCode of Ethics
Board CharterContinuous Disclosure
Policy
Safety and Performance
Committee Charter
Financial Product
Dealing Policy
Audit and Risk
Committee Charter
Diversity Policy
Director and Officer
Remuneration Policy
Comvita Limited is committed to taking
a holistic view of how it creates long-term
value and the impact of its decisions on
all stakeholders – including shareholders,
employees, customers, suppliers, community
and the environment.
DAVID BANFIELD
CHIEF EXECUTIVE OFFICER
NIGEL GREENWOOD
CHIEF FINANCIAL OFFICER
DR JACKIE EVANS
CHIEF SCIENCE OFFICER
NICOLA O’ROURKE
CHIEF DIGITAL OFFICER
NIGEL KING
CHIEF MARKETING OFFICER
COREY BLICK
GENERAL MANAGER
NORTH AMERICA
HOLLY BROWN
CHIEF PURPOSE &
TRANSFORMATION OFFICER
ADRIAN BARR
CHIEF BUSINESS
DEVELOPMENT OFFICER
TRACEY BROWN
CHIEF OPERATIONS
OFFICER
ANDY CHEN
REGIONAL CHIEF EXECUTIVE
OFFICER ASIA
CHRIS FRANCE
CHIEF TECHNOLOGY
OFFICER
VISIT COMVITA.CO.NZ
FOR BIOGRAPHIES OF OUR
BOARD AND LEADERSHIP
GOVERNANCE
OUR LEADERSHIP TEAM
BUILDING OUR BUSINESS
——
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LEADERSHIP
LEADERSHIP,
GOVERNANCE
AND APPENDICES
Principle 2 – Board Composition and Performance
The Board operates in accordance with the Board
Charter, which sets out the roles and responsibilities
of the Board. A copy of the charter is available on the
company’s website.
There is a balance of independence, skills, knowledge,
experience and perspective among Directors that
allows the Board to work effectively. The Directors
have each signed a written agreement with the
company in accordance with Recommendation 2.3
of the NZX Code.
Responsibility for the day-to-day operations and
administration of the company is delegated by
the Board to the Chief Executive Officer and the
leadership team.
Nominations and appointments
The nomination of candidates for appointment to
the Board is overseen by the Safety and Performance
Committee, and the procedure for nomination
and appointment is detailed in the Safety and
Performance Committee Charter. Such procedure
includes processes to be followed to ensure proper
checks are carried out on all candidates and key
information is obtained to enable the Board and
shareholders to make an informed decision about
whether to elect or re-elect a candidate. It also
provides for an assessment of independence.
Board size and composition
The Board is comprised of Directors with a mix of
qualifications, skills and experience appropriate to
the company’s business. The number of Directors and
rotation requirements are determined in accordance
with the company’s Constitution, the Board
Charter and the NZX Main Board Listing Rules.
The Constitution provides for the Directors to elect
one of their number as Chair of the Board, and the
Board Charter provides that the Chair should be an
independent Director unless otherwise approved by
all Directors. To encourage the process of constant
evolution of the Board and succession of key roles
within the Board, the Board Charter states that
Directors are discouraged from standing for re-
election a second time (i.e. after serving six years)
unless by unanimous support from the whole Board.
For the year ended 30 June 2022, the company
complied with the current Listing Rules with
regard to the composition of the Board and the
appointment and rotation of Directors.
Director profiles, ownership interests and meeting
attendance profiles of each Director with details of
their experience, length of service and independence
are available on the company’s website and/or in
this Annual Report.
Director ownership interests (including beneficial
ownership) as at 30 June 2022 are detailed in the
Statutory Information section at the back of the
Financial Statements 2022.
Board and Committee meeting attendance for the year ended 30 June 2022 is set out below:
Board MemberBoard1
Conference
calls and special
meetings
Audit and Risk
Committee2
Safety and
Performance
Committee3
EligibleAttendedEligibleAttendedEligibleAttendedEligibleAttended
Brett Hewlett1212444444
Lucas Bunt12124444––
Sarah Kennedy121244––44
Robert Major1212442244
Paul Reid34 322––––
Cheng Dayong25 020––––
Zhu Guangping1296 42––––
David Banfield107 1022––––
Yawen Wu10899 22––––
Bridget Coates9
10
92222––
1. Chair of the Board has no casting vote
2. Chair of the A&R Committee has a casting vote
3. Chair of the S&P Committee has no casting vote
4. Paul Reid resigned effective 1 October 2021
5. Cheng Dayong resigned effective 13 September 2021
6. Zhu Guangping joined these meetings in the afternoon due to the time zone differences
7. David Banfield was appointed Managing Director effective 13 September 2021
8. Yawen Wu was appointed director effective 13 September 2021
9. Yawen Wu’s alternative Qiang Sun attended two of these meetings on her behalf and Yawen Wu joined one meeting late due to the time zone differences
10. Bridget Coates was appointed Director effective 1 October 2021.
Gender composition of Directors and officers and diversity
The company is committed to diversity (race, gender, sexuality etc.) in its employment of individuals at all levels
in the organisation.
As at 30 June 2022 (the prior year’s comparison is in brackets):
Board
Audit and Risk
Committee
Safety and
Performance
CommitteeOfficers
Gender
Male 5 (6) 63%2 (3)2 (2)8 (6)
Female 3 (1) 38%1 (0)1 (1)5 (3)
Gender diverse 0 (0) 0%0 (0)0 (0)0 (0)
Age
Under 30 years 0 0%
30–50 years 1 13%
Over 50 years 7 87%
Executive100
Non-Executive733
Independent533
Tenure on the
governance body
Please refer to
the website –
Our People
Please refer to
the website –
Our People
Please refer to
the website –
Our People
Number of each individuals
other significant positions
and commitments
and the nature of
the commitments
Please refer to
the Statutory
Information
section of
the Financial
Statements
Please refer to
the Statutory
Information
section of
the Financial
Statements
Please refer to
the Statutory
Information
section of
the Financial
Statements
Membership of
under-represented
social groups
2 x Chinese ethnicity
1 x British ethnicity
3 x female
1 x female1 x female
Stakeholder representationNoneNoneNone
Diversity Policy
Comvita has maintained its commitment to diversity,
equity, and inclusion – a stance which is reflected
in the core values and behaviours of the company.
Comvita has a Diversity Policy in accordance with
Recommendation 2.5 of the NZX Code, which is
available on the company’s website. The Safety and
Performance Committee is monitoring set diversity
objectives and targets, specifically relating to pay
policies and equity, vocational development, and
the diversity of senior executives (gender, and global
experiences and perspectives). The Committee
is positive about current progress and strategies
to maintain equality on a scheduled approach.
Director training and performance
Board members are encouraged to regularly
participate in learning and self-development
opportunities provided by the Institute of Directors
or other professional groups to ensure they remain
current on how best to perform their duties as
a Director.
The company has a procedure to assess Director,
Board and Committee performance, which is set
out in the Board Charter. In particular, the Board
periodically undertakes a self-assessment of its
performance, processes and procedures.
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GOVERNANCE
LEADERSHIP,
GOVERNANCE
ANDfiAPPENDICES
Independence of Directors
The majority of the Board are independent Directors.
The Chair is also independent.
For a Director to be considered to be independent,
the fundamental consideration in the opinion of
the Board is that the Director be independent of
the Executive and not have any direct or indirect
interest, position, association or relationship that
could or could be perceived to influence in a material
way the Director’s capacity to bring an independent
view to decisions, to act in the best interests of
the company and to represent the interests of
shareholders generally. In accordance with the
NZX Code, any Director who is or who is associated
with a substantial product holder is considered by
the Board to not be independent.
Having considered these matters and the
composition of the Board, the company considers
the Directors hold an appropriate mix of skills,
expertise and independence.
The Board has reviewed which of its Directors are
deemed to be independent in terms of the NZX
Listing Rules and has determined that five of the
eight Directors as at 30 June 2022 were independent.
10
It is viewed that the Chairs of the Audit and Risk
and the Safety and Performance Committees are
independent, as are the Committee members.
Principle 3 – Board Committees
The Board uses Committees where this enhances
the effectiveness in key areas while retaining Board
responsibility. The Board operates two Committees
to assist in the execution of the Board’s duties: the
Safety and Performance Committee and the Audit
and Risk Committee. Each Committee has a specific
Charter, which can be viewed at the company’s
website. Committee members are appointed from
members of the Board for an initial two-year term,
with reappointment reviewed on an annual basis.
All matters determined by Committees are
submitted to the full Board as recommendations
for Board decision. Staff members attending
those Committees are at the invitation of the
specific Committee.
The Board did not consider it necessary to have
any other Committees for the reporting period
as a standing board Committee.
Safety and Performance Committee
The Safety and Performance Committee is
comprised of Sarah Kennedy (Chair), Brett Hewlett
and Bob Major. The Committee met four times
during the period.
For FY22 all Committee members were independent
Directors. The Committee provides oversight to
health and safety by ensuing the business maintains
a strong health and safety culture that meets or
exceeds the company’s obligations under legislation
and best-practice standards. The Committee also
recommends the remuneration policies and packages,
including performance incentives for the Chief
Executive Officer and the Chief Financial Officer.
Additionally, it reviews the performance targets
of the Chief Executive Officer, succession planning
for the leadership team and the Board, risk and
compliance monitoring in relation to the company’s
human resources and operational health and safety
oversight and remuneration policies and guidelines
for Directors. The Committee also provides guidance
with respect to Comvita’s Environmental, Social and
Governance aspirations and delegates responsibility
for managing impacts on the economy, environment
and people to the Chief Purpose and Transformation
Officer who is then supported by the Head of Safety
and Sustainability.
The Committee also carries out the functions of
a nominations Committee, recommending new
Director appointments to the full Board. Further
detail on the Committee’s roles and responsibilities
is set out in the Committee Charter.
Audit and Risk Committee
The Audit and Risk Committee currently comprises
Luke Bunt (Chair), Brett Hewlett and Bridget Coates
and met four times during the period. For FY22 all
Committee members were independent Directors.
The Committee reviews the annual audit process,
the financial and operational information provided
to stakeholders and others, the management of
business risks facing the organisation and the
framework of internal control and governance that
the leadership team and the Board have established.
The Chief Executive Officer, Chief Financial Officer
and Group Financial Controller regularly attend
meetings by invitation.
The company’s external auditors attend Committee
meetings as deemed necessary by the Committee.
Further detail on the Committee’s roles and
responsibilities is set out in the Committee Charter.
Takeover protocols
The Board has established experience in respect
of the various NZX and statutory requirements in
the event of a takeover approach for the company.
The key requirements of the Takeover Code are well
understood by the Board.
Further, the company has established formal
protocols that set out the procedure to be followed
if there is a takeover offer in accordance with
Recommendation 3.6 of the NZX Code.
10 Mr Zhu Guangping and Ms Yawen Wu are not considered independent
as they are associated with substantial product holders. Zhu Guangping
is associated with Li Wang, the largest shareholder in the company
with a shareholding of greater than 5%. Yawen Wu is associated with
China Resources, which also has a shareholding of greater than 5%.
David Banfield is not considered independent as he is Managing Director
and CEO.
Principle 4 – Reporting and Disclosure
The Board demands integrity both in financial
reporting and in the timeliness and balance of
disclosure on entity affairs.
The company is committed to ensuring integrity and
timeliness in its financial reporting and in providing
information to the market and shareholders that
reflects a considered view on the present and
future prospects of the company.
Financial reporting
The Audit and Risk Committee oversees the quality
and integrity of external financial reporting including
the accuracy, completeness and timeliness of
financial statements. It reviews half-year and annual
financial statements and makes recommendations
to the Board concerning accounting policies,
areas of judgement, compliance with accounting
standards, stock exchange and legal requirements
and the results of the external audit. Management
accountability for the integrity of the company’s
financial reporting is reinforced by the certification
from the Chief Executive Officer and Chief Financial
Officer in writing that the company’s financial
statements are fairly stated in all material aspects.
Timely and balanced disclosure
Continuous disclosure obligations of NZX require all
listed companies to advise the market about any
material events and developments as soon as the
company becomes aware of them. The company
has policies and monitoring in place to ensure that
it complies with these obligations. In particular,
the company has a Continuous Disclosure Policy
applicable to all Directors, officers and employees
that is available on the company’s website.
Non-financial reporting
The company is committed to financial reporting that
is balanced, clear and objective. Broader reporting
of environmental, social and governance factors
is contained in the body of the Annual Report and
aligned to Global Reporting Initiative (GRI). A table
appendixed to this report links disclosed information
to the GRI indicators as a first step towards adopting
the GRI methodology.
Principle 5 – Remuneration
The remuneration of Directors and senior executives
is transparent, fair and reasonable. Making sure
team members and Directors get the rewards
they deserve is the responsibility of the Safety
and Performance Committee.
Non-Executive Directors’ remuneration
The fees payable to the Non-Executive Directors
are determined by the Board within the aggregate
amount approved by shareholders. The Board
considers external information of peer companies
in terms of scale and complexity when setting
remuneration levels. The current Directors’ fee
pool limit is $610,000 approved at the 2016 Annual
Shareholders’ Meeting. Information on payments to
each Director is set out in the Statutory Information
section at the back of the Financial Statements 2022.
Chief Executive Officer remuneration
The Chief Executive’s base salary for FY22 was
$533,000. Subject to Board approval, for FY22, the
Chief Executive Officer was also entitled to a short-
term incentive if he met agreed financial and non-
financial goals (with on-target earnings of 35% of
base salary and the ability to achieve up to 44.8%
of salary for over-delivery against Board-approved
targets). Subject to Board approval and achievement
of agreed Group performance targets, for FY22,
the Chief Executive was also entitled to a long-term
incentive in the form of Performance Share Rights
(with on-target earnings of $130,250). In relation
to performance share rights achievements in FY22,
11,831 shares vested to the Chief Executive Officer
in FY22, being one-third of the long-term incentive
granted by the Board.
Senior executive remuneration
For FY22, senior executive remuneration was made
up of base or fixed remuneration, an employee bonus
plan and a performance share rights plan, subject to
Board approval.
Staff remuneration
All permanent staff are eligible to participate in a
short-term incentive scheme. Bonus payments are
contingent upon achievement of company targets
for the year (as approved by the Board) as well as
assessment of individual delivery against objectives
cascaded through the organisation and individual
behaviour in line with core values.
Policy
The company has a Remuneration Policy for Directors
and officers in accordance with Recommendation 5.2
of the NZX Code, a copy of which is available on the
company’s website.
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GOVERNANCE
LEADERSHIP,
GOVERNANCE
ANDfiAPPENDICES
Principle 6 – Risk Management
The company has carried out a robust risk
assessment process, described in the following
paragraphs. The Board regularly verifies that the
entity has appropriate processes that identify and
manage potential and relevant risks through monthly
Board reporting of the risk register. Further detail
on the role and responsibilities of the Audit and Risk
Committee in relation to risk management is set out
in the Audit and Risk Committee Charter.
Business risks
The Chief Executive Officer and leadership team are
required to regularly identify the major risks affecting
the business. These major risks are included in a risk
management register. Strategies are consistently
being developed to mitigate these risks. Significant
risks are discussed at each Board meeting or as
required. The company maintains insurance policies
that it considers adequate to meet the insurable
risks of the Group. Exposure to any foreign exchange
risk is managed in accordance with policies laid down
by the Directors.
As risk assessment is a dynamic environment and
often commercially sensitive, the company reports
on the most significant of these under its continuous
disclosure obligations to the NZX market and in the
Annual Report.
Health and safety
The company employs a Head of Safety and
Sustainability, with oversight of health and safety
matters sitting with the Safety and Performance
Committee. The health and safety functions of
the Committee include undertaking due diligence
in the identification and monitoring of critical
workplace, heath, safety and wellbeing as well as the
monitoring and review of the company’s compliance
with documented health and safety policies and
procedures. Health and safety review reports are
a priority agenda item at all Board meetings, and
specific reviews are sought as required. The Board
undertakes ongoing external health and safety
governance training and undertakes safety walks
in key operational sites on a scheduled basis.
Chief Executive Officer and Chief Financial
Officer assurance
The Chief Executive Officer and Chief Financial
Officer have provided the Board with written
confirmation that the company’s 2022 financial
statements are founded on a sound system of risk
management and internal compliance and control
and that all such systems are operating efficiently
and effectively in all material respects.
Risk monitoring
The Board reviews the company’s risk management
policies and processes, and the leadership team
provides an updated risk assessment profile to
each meeting of the Board.
The Safety and Performance Committee reviews
human resource management risks.
Principle 7 – Auditors
The Board ensures the quality and independence
of the external audit process. A framework for the
company’s relationship with its external auditors
is overseen by the Audit and Risk Committee.
Further detail on that framework and the role and
responsibilities of the Audit and Risk Committee in
relation to the external audit framework is set out
in the Audit and Risk Committee Charter.
Independence
The Audit and Risk Committee actively engages
the company’s external auditors in a dialogue with
respect to any disclosed relationships or services that
may impact the objectivity and independence of such
auditors and recommends to the Board appropriate
action to ensure its independence.
External auditor
Comvita’s external auditor is KPMG. KPMG was
reappointed by shareholders at the 2021 Annual
Shareholders’ Meeting in accordance with the
provisions of the Companies Act 1993. KPMG was
first appointed as auditor in 1998. KPMG has been
invited to attend this year’s Annual Shareholders’
Meeting and will be available to answer questions
about the audit process, Comvita’s accounting
policies and the independence of the auditor.
Internal audit
Comvita currently does not have an internal audit
function. However the Audit & Risk Committee
approves management’s Internal Audit Plan annually.
This programme of work includes internal and
external reviews of specific risk areas and includes
a review of one offshore subsidiary per year. The
Audit and Risk Committee is responsible for reviewing
and monitoring the company’s risk management
and internal control framework and has open
communication with external auditors, financial and
senior management and the Board. The Committee
is empowered to investigate any matter brought to
its attention with full access to all books, records
and facilities and personnel of the company and the
power to retain outside counsel or other experts for
this purpose. In addition, the Board seeks reports
on specific areas of potential concern or to evaluate
business performance on a post-investment basis.
The reviews are completed by appropriate internal
staff and/or with external input.
Principle 8 – Shareholder Rights and Relations
The Board fosters constructive relationships with
shareholders, which encourages them to engage
with the company.
The Board aims to ensure shareholders are provided
with all information necessary to assess the
company’s strategic direction and performance.
It does this through a communication strategy
that includes:
• periodic and continuous disclosure to NZX
• information provided to media and briefings
to major shareholders
• half-year and annual reports
• the company’s website with an investor
relations section
• future direction presentation at the Annual
Shareholders’ Meeting, which is conducted
in a very open manner, and a range of questions
are considered.
The company aims to ensure the process of
communication with investors is easy and uses
a variety of channels and technologies to keep its
shareholders informed, including by providing and
encouraging investors to receive communications
electronically. The company has engaged a
communications agency to assist with its investor
relations programme.
To encourage shareholder participation in meetings,
the Board looks to ensure notices of annual or
special meetings of shareholders are posted on
the company’s website at least 20 working days
prior to the meeting.
Major decisions
All major decisions that may result in a change in
the nature of the company’s business are subject
to shareholder approval in accordance with the
company’s Constitution, the Companies Act 1993
and the NZX Listing Rules. No major decisions
required shareholder approval in the reporting period.
Capital raising
When considering any raising of additional capital,
the Board considers the interests of all shareholders
when assessing its options to raise capital. The Board
will usually look to raise additional equity capital from
existing shareholders on a pro-rata basis.
Stakeholder interests
The Board respects the interests of stakeholders
within the context of the company’s ownership
type and its fundamental purpose. The Company is
committed to taking a holistic view of how it creates
long-term value for all stakeholders, and considering
the impact of its decisions on all stakeholders –
including shareholders, employees, customers,
suppliers, community, and the environment.
The company is strongly committed to acting in a
socially responsible manner with all stakeholders,
including the wider community, whilst having an
overall positive impact on the environment.
Further detail
Further detail as required by the NZX Listing Rules
and Companies Act 1993 is included in the financial
statements supplied with, and as part of, the
Annual Report.
N
O
.
84N
O
.
85
ANNUAL REPORT
COMVITA.CO.NZ
2022
GOVERNANCE
LEADERSHIP,
GOVERNANCE
ANDfiAPPENDICES
Statement of use
Comvita has reported the information cited in this GRI content index for the
period of 1 July 2021 to 30 June 2022 with reference to the GRI Standards.
GRI 1 used
GRI 1: Foundation 2021
GRI DISCLOSURES
GRI standard Disclosure
Location in the
report (page
numbers/section
headings)
Sustainable
Development Goals
(SDGs)/Comvita
comment
GRI 2 - General
Disclosures
2-1 Organizational detailsPage 86
2-2 Entities included in the
organization’s sustainability reporting
Page 91
2-3 Reporting period, frequency and
contact point
Throughout
2-4 Restatements of informationExcludedExcluded from this report
as this is our first year of
reporting in reference to
GRI and is not applicable.
2-5 External AssurancePage 90
2-6 Activities, value chain and other
business relationships
Page 16
2-7 EmployeesPages 52-55Partial disclosure.
Will be enhanced in
FY23 following system
improvements.
2-9 Governance structure
and composition
Page 80
2-10 Nomination and selection of
the highest governance body
Page 80
2-11 Chair of the highest
governance body
Page 80
2-12 Role of the highest governance
body in overseeing the management
of impacts
Page 82 - Principle 3
2-13 Delegation of responsibility
for managing impacts
Page 82 - Principle 3
2-14 Role of the highest governance
body in sustainability reporting
Page 82 - Principle 3
2-15 Conflicts of interestPage 79
2-16 Communication of
critical concerns
Page 84
GRI CONTENT INDEX
——
GRI standard Disclosure
Location in the
report (page
numbers/section
headings)
Sustainable
Development Goals
(SDGs)/Comvita
comment
GRI 2 - General
Disclosures
continued
2-17 Collective knowledge of the
highest governance body
Page 81
2-18 Evaluation of the performance
of the highest governance body
Page 81
2-19 Remuneration policiesPage 83
2-22 Statement on sustainable
development strategy
Page 48 Reference to Comvita’s
Harmony Plan.
2-28 Membership associationsPartial disclosure.
Some of Comvita’s
professional memberships
are mentioned within
this report.
2-29 Approach to stakeholder
engagement
GRI 3: Material
Topics 2021
3-1 Process to determine
material topics
3-2 List of material topics
3-3 Management of material topics
Sustainable Financial Performance
GRI 201:
Economic
Performance
2016
201-1 Direct economic value
generated and distributed
Pages 11, 29-43SDG 8, 9
Mānuka honey and Broader Sector Leadership
GRI 203: Indirect
Economic
Impacts 2016
203-2 Significant indirect
economic impacts
Pages 18-19SDG 8, 9, 17
Circular Economy and Waste
GRI 301:
Materials 2016
301-1 Materials used by weight
or volume
Page 65SDG 12
Comvita has captured
overall weight and
volume of materials
used and waste and
intends to expand
disclosures in FY23.
GRI 306:
Waste 2020
306-4 Waste diverted from disposal
Biodiversity
GRI 304:
Biodiversity
2016
304-2 Significant impacts of
activities, products and services
on biodiversity
Pages 70-71SDG 15
304-3 Habitats protected or restored
GRI CONTENT INDEX
N
O
.
86N
O
.
87
ANNUAL REPORT
COMVITA.CO.NZ
2022
GRI CONTENT INDEX
LEADERSHIP,
GOVERNANCE
ANDfiAPPENDICES
GRI standard Disclosure
Location in the
report (page
numbers/section
headings)
Sustainable
Development Goals
(SDGs)/Comvita
comment
Climate Action
GRI 305:
Emissions 2016
305-1 Direct (Scope 1) GHG emissionsPage 64SDG 7, 12, 13
305-2 Energy indirect (Scope 2)
GHG emissions
305-3 Other indirect (Scope 3)
GHG emissions
GRI 201:
Economic
Performance
2016
201-2 Financial implications and
other risks and opportunities due
to climate change
ExcludedSDG 8, 13
Excluded from this report.
Comvita aims to enhance
climate resilience and is
working towards TCFD-
based reporting.
Ethical Conduct and Sustainable Supply Chain
GRI 308:
Supplier
Environmental
Assessment
2016
308-1 New suppliers that were
screened using environmental criteria
Excluded SDG 11, 12, 16
Excluded from this report.
To be included as new
mechanisms for data
capture are devised.
308-2 Negative environmental
impacts in the supply chain and
actions taken
Employee Value Proposition and Engagement
GRI 403:
Occupational
Health and
Safety 2018
403-9 Work-related injuriesPages 58-61 SDG 3, 4, 5
GRI 404:
Training and
Education 2016
404-2 Programs for upgrading
employee skills and transition
assistance programs
Pages 54-55Partial disclosure.
Dedicated learning
and development role
appointed in FY23 to
support enhanced focus
and reporting from FY23.
GRI 405:
Diversity
and Equal
Opportunity
2016
405-1 Diversity of governance
bodies and employees
Page 81Partial disclosure.
To be enhanced in
FY23 following systems
improvements.
405-2 Ratio of basic salary and
remuneration of women to men
Page 53
Collaboration and Partnerships
GRI 413: Local
Communities
2016
413-1 Operations with local community
engagement, impact assessments,
and development programs
Pages 19, 72-75SDG 11
Product Quality
GRI 416:
Customer Health
and Safety 2016
416-2 Incidents of non-compliance
concerning the health and safety
impacts of products and services
Pages 18-19 SDG 16
MATERIAL TOPICS – NON-GRI DISCLOSURES AND MATERIALITY ASSESSMENT MATRIX
GRI standard Disclosure Location in
the report
(page numbers/
section headings)
Sustainable
Development
Goals (SDGs)
Employee Value
Proposition
Investments in EVP and employee
wellbeing initiatives
Pages 53 and 57SDG 3, 4, 5
% of whānau ownershipPage 53
Beekeeping apprenticeships Page 53
Mātauranga Māori Pages 56-57
Bee Welfare Investment in bee welfare and bee
rescue partnerships
Pages 60-61SDG 15, 17
Consumer Focus
and Affinity
Registered users and consumer retainment Page 44SDG 8
Mānuka and Broader
Sector Leadership
Total investment into-research and
development in apiaries and mānuka forests
Pages 18-19SDG 8, 9, 17
Circular Economy
and Waste
Material circularity indicators, packaging
recycling percentages and reduction initiatives
Pages 64-65SDG 12
BiodiversityProtection of iconic species and forestsPages 72-73SDG 15
Stakeholder ValueValue creation modelPage 16 SDG 17
Product QualityInvestment in automation undertaken in
the lab to increase capacity and quality
Page 18SDG 16
Comvita's Materiality Matrix
Priority topics
indentified
through
materiality
assessment
Aligned topics
prioritised
through follow-
up analysis
Other material
topics
Key:
Sustainable Financial Performance
Health, Safety and Wellbeing of Comvita People
Product Quality
Ethical Conduct and Sustainable Supply Chain
Market Access
Culture and Values
Consumer Focus & Affinity
Customer Experience
Diversity and Inclusion
Carbon and Energy Use
Collaboration and Partnership
Circular Economy and Waste
Pesticide and Herbicide Use
Product Stewardship
Future of Work
Māori Engagement
Community
Waste
Bee Education and Advocacy
Communication and Relationship
Resilient and Responsiblity Supply Chain
Employee Value Proposition and Engagement
Governance
BiodiversityBee Welfare
Innovation
Mānuka and Broader Honey Sector Leadership
Adapting To The Changing Climate
Responding to Climate-Related Business Risk
Business impact
(business impact workshop)
Stakeholder importance (survey)
N
O
.
88N
O
.
89
ANNUAL REPORT
COMVITA.CO.NZ
2022
GRI CONTENT INDEX
LEADERSHIP,
GOVERNANCE
ANDfiAPPENDICES
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
Japan
COMVITA JAPAN K.K.
—
Sangenjaya Horisho Bld 4F
1-12-39 Taishido, Setagaya-Ku
Tokyo 154-0004, Japan
Phone +81 3 6805 4780
info@comvita-jpn.com
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
Published August 2022
This document is printed on environmentally responsible papers, produced using elemental chlorine-free
(ECF), FSC-certified mixed-source pulp from responsible sources and manufactured under the strict
ISO14001 environmental management system.
insight
creative.co.nz
|
COM010
OUR OFFICES
——
Australia
COMVITA AUSTRALIA
PTY LIMITED
—
167 Eagle Street Brisbane,
Queensland 4000, Australia
Freephone 1800 466 392
info@comvita.com.au
United Kingdom
COMVITA UK LIMITED
—
2nd Floor, 47a High Street
Maidenhead, SL61JT
United Kingdom
Phone +44 1628 779 460
info@comvita.co.uk
North America
COMVITA USA, INC.
—
506 Chapala Street
Santa Barbara, CA 93101
USA
Phone +1 855 449 2201
hello@comvita.com
Hong Kong SAR
COMVITA HK LIMITED
—
Suite 1320-1322,
Leighton Centre,
77 Leighton Road
Causeway Bay
Hong Kong
Phone +852 2562 2335
cs@comvita.com.hk
China
COMVITA FOOD (CHINA) LIMITED
—
Room 2501 - 2502, Block A
Xinhao E Du, No 7018
Caitian Road, Futian District
Shenzhen 518120
Guangdong, China
Phone +86 755 8366 1958
comvita@comvita.com.cn
Europe
COMVITA EUROPE
—
Bakincklaan 7 1183 AT
Amstelveen
Netherlands
Phone: +31682065359
info.europe@comvita.com
Directors
COMVITA BOARD OF DIRECTORS
—
Brett Hewlett
Sarah Kennedy
Zhu Guangping
Bob Major
Luke Bunt
Bridget Coates
Yawen Wu
David Banfield
Bankers
WESTPAC BANKING CORPORATION
—
Level 8
16 Takutai Square
PO Box 934
Auckland 1140
Registered office
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
Auditors
KPMG TAURANGA
—
Level 2
247 Cameron Road
PO Box 110
Tauranga 3140
Solicitors
SIMPSON GRIERSON
—
Level 27
88 Shortland Street
Auckland CBD
Auckland 1010
SHARP TUDHOPE
—
Level 4
152 Devonport Road
Private Bag TG12020
Tauranga 3110
Share registry
LINK MARKET SERVICES LIMITED
—
Level 30
PwC Tower
15 Customs Street West
Auckland 1010
MORE DETAILS
——
DIRECTORY
DIRECTORY
N
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91
COMVITA.CO.NZ
2022
N
O
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90
ANNUAL REPORT
BUILDING
A BETTER BUSINESS
---
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
I
FINANCIAL STATEMENTS 2022
FOR THE YEAR ENDED 30 JUNE 2022 — COMVITA LIMITED
BLOSSOMING
COMVITA.CO.NZ
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
II
2022
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
1
CONTENTS
2
SECTION
Consolidated Income Statement 3
Consolidated Statement of Comprehensive Income 4
Consolidated Statement of Changes In Equity 5
Consolidated Statement of Financial Position 6
Consolidated Statement of Cash Flows 7
1
SECTION
Directors’ declaration
2
3
SECTION
Notes to the
Financial Statements 8
4
SECTION
Audit Report
39
5
SECTION
Statutory Information
43
6
SECTION
Company Directory
49
1
COMVITA.CO.NZ
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
2
In the opinion of the Directors of Comvita Limited, the financial statements and the
notes, on pages 3 to 38:
• comply with New Zealand generally accepted accounting practice and fairly reflect
the financial position of the Group as at 30 June 2022 and the results of their
operations and cash flows for the year ended on that date
• have been prepared using appropriate accounting policies, which unless otherwise
stated 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 year ended 30 June 2022.
For and on behalf of the Board of Directors:
Directors’
DECLARATION
Brett Hewlett Luke Bunt
24 August 2022 24 August 2022
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
3
For the year ended
In thousands of New Zealand dollars
30 June 202230 June 2021
Note
Revenue208,909
191,734
Cost of sales(82,909)
(88,310)
Gross profit126,000
103,424
Other income51,943
3,220
Marketing expenses(28,062)
(24,216)
Selling and distribution expenses(47,362)
(44,597)
Administrative and other operating expenses8(32,370)
(25,648)
Operating profit before financing costs20,149
12,183
Finance income6290
2,473
Finance expenses6(3,127)
(2,247)
Net finance (expenses)/income(2,837)
226
Share of (loss)/profit of equity accounted investees16b(187)
992
Profit before income tax17,125
13,401
Income tax expense9(4,341)
(3,922)
Profit for the year12,784
9,479
Earnings per share
Basic earnings per share (NZ cents)2318.2413.61
Diluted earnings per share (NZ cents)2318.1313.59
EBITDA3030,08325,523
*EBITDA is a non-GAAP measure. We monitor this as a key performance indicator and believe it assists investors in
assessing the performance of the core operations of our business. A reconciliation of EBITDA to profit before tax is
provided in note 30.
The notes on pages 8 to 38 are an integral part of these financial statements
CONSOLIDATED
INCOME STATEMENT
FINANCIAL STATEMENTS
2
COMVITA.CO.NZ
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
4
The notes on pages 8 to 38 are an integral part of these financial statements
For the year ended
In thousands of New Zealand dollars
30 June 202230 June 2021
Note
Profit for the year12,7849,479
Items that are or may be reclassified subsequently to the income statement
Foreign currency translation differences for foreign operations 3,233(1,067)
Foreign currency translation differences for equity accounted investees(46)(49)
Effective portion of changes in fair value of cash flow hedges(4,657)(950)
Foreign investor tax credits109-
Fair value movement – financial asset-396
Income tax on these items 9987328
Income and expense recognised directly in other comprehensive income(374)(1,342)
Total comprehensive income for the year12,4108,137
CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME
FINANCIAL STATEMENTS
N
O
.
5
The notes on pages 8 to 38 are an integral part of these financial statements
CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2022
In thousands of New Zealand dollars
Share
capital
Foreign
currency
translation
reserve
Hedging
reserve
Fair
value
reserve
Retained
earningsTotal
Balance at 30 June 2020200,104(3,809)(527)(2,640)18,620211,748
Total comprehensive income for the year
Profit for the year----9,4799,479
Other comprehensive income (net of tax)
Foreign currency translation differences for equity accounted
investees (note 16b)
-(49)---(49)
Foreign currency translation differences for foreign operations-(1,004)---(1,004)
Financial asset – fair value movement ---396-396
Disposal of equity instruments---2,244(2,244)-
Effective portion of changes in fair value of cash flow hedges--(684)--(684)
Total other comprehensive income-(1,053)(684)2,640(2,244)(1,341)
Total comprehensive income for the year-(1,053)(684)2,6407,2358,138
Transactions with owners, recorded directly in equity
Share based payment ----221221
Acquisition of treasury stock (1,239)----(1,239)
Issue of ordinary shares - Supplier share scheme 486----486
Issue of ordinary shares - Share purchase and loan scheme (note 26a)1,269----1,269
Issue of treasury stock - Share purchase and loan scheme (note 26a)1,239---381,277
Redemption of ordinary shares related to share schemes(20)----(20)
Total transactions with owners1,735---2591,994
Balance at 30 June 2021201,839(4,862)(1,211)-26,114221,880
Total comprehensive income for the year
Profit for the year---- 12,78412,784
Other comprehensive income (net of tax):
Foreign currency translation differences for equity accounted
investees (note 16b)
-(46)---(46)
Foreign currency translation differences for foreign operations-2,916---2,916
Foreign investor tax credits----109109
Effective portion of changes in fair value of cash flow hedges--(3,353)--(3,353)
Total other comprehensive income-2,870(3,353)-109(374)
Total comprehensive income for the year-2,870(3,353)-12,89312,410
Transactions with owners, recorded directly in equity
Share based payment ----601601
Acquisition of treasury stock (2,992)----(2,992)
Issue of ordinary shares - Supplier share scheme 541---(37)504
Issue of ordinary shares - Peformance share rights scheme (note 26b)299----299
Redemption of ordinary shares related to share schemes(10)----(10)
Dividends paid (note 22)----(4,702)(4,702)
Total transactions with owners(2,162)---(4,138)(6,300)
Balance at 30 June 2022199,677(1,992)(4,564)-34,869227,990
FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
6N
O
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6
As at 30 June 2022
20222021
In thousands of New Zealand dollars
Note
Assets
Property, plant and equipment
11
64,96863,345
Intangible assets and goodwill
12
40,40238,046
Right of use assets
13
12,11213,035
Biological assets
15
3,8783,814
Investment
16
10,9656,849
Loans to equity accounted investees
16
5,1885,031
Deferred tax asset
10
5,7597,209
Total non-current assets143,272137,329
Inventory
17
132,157101,008
Trade receivables
18
27,81823,523
Sundry receivables
19
11,5268,432
Cash and cash equivalents
24
17,75616,267
Tax receivable25150
Total current assets189,508149,280
Total assets332,780286,609
Equity
Issued capital199,677201,839
Retained earnings34,86926,114
Reserves
(6,556)
(6,073)
Total equity227,990221,880
Liabilities
Loans and borrowings
24
43,30020,850
Employee benefits
20
267539
Lease liability9,4319,950
Deferred tax liability
10
1,8641,962
Total non-current liabilities54,86233,301
Trade and other payables
21
31,65018,869
Lease liability3,3733,631
Employee benefits
20
6,1425,514
Tax payable2,2441,766
Derivatives
27
6,5191,648
Total current liabilities49,92831,428
Total liabilities104,79064,729
Total equity and liabilities332,780286,609
The notes on pages 8 to 38 are an integral part of these financial statements
CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
7
For the year ended 30 June 2022
In thousands of New Zealand dollars
20222021
Note
Receipts from customers208,080190,739
Payments to suppliers and employees(200,884)(161,711)
Interest received542
Interest paid(2,535)(2,247)
Taxation paid(1,836)(1,998)
Net cash flows from operating activities252,83024,825
Consideration paid for the acquisition of investees(5,092)-
Receipt from disposal of investment-396
Loans to equity accounted investees198(150)
Interest from equity accounted investees-19
Receipt of dividend from equity accounted investee745363
Loans to related parties-567
Interest from related parties4523
Payment for the purchase of property, plant and equipment(5,451)(10,601)
Receipt for the disposal of property, plant and equipment335468
Receipt from sale of intangibles-2
Payment for the purchase of intangibles(3,997)(366)
Net cash flows from investing activities(13,217)(9,279)
Proceeds from the issue of share capital (10)(20)
Purchase of treasury stock(2,992)(1,239)
Repayment of lease liabilities(3,862)(3,560)
Proceeds from/(repayment of) loans and borrowings22,450(11,350)
Payment of dividends(4,702)-
Net cash flows from financing activities10,884(16,169)
Net increase in cash and cash equivalents497(623)
Cash and cash equivalents at the beginning of the year16,26716,680
Effect of exchange rate fluctuations on cash held992210
Cash and cash equivalents at the end of the year17,75616,267
Represented as:
Cash and cash equivalents2417,75616,267
Total17,75616,267
The notes on pages 8 to 38 are an integral part of these financial statements
CONSOLIDATED
STATEMENT OF CASH FLOWS
FINANCIAL STATEMENTS
N
O
.
8
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 financial
statements of the Group for the year ended 30 June
2022 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
under part 7 of 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 and International Financial
Reporting Standards as appropriate for profit-
oriented entities.
The financial statements were approved by the
Board of Directors on 24 August 2022.
(b) Basis of measurement
The financial statements have been prepared on the
historical cost basis except for financial instruments,
financial instruments designated as fair value
through other comprehensive income and biological
assets which are measured at fair value.
The methods used to measure fair values are
discussed further in the respective notes.
(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) Accounting estimates and judgements
The preparation of the financial statements 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.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting
estimates are recognised in the reporting period
in which the estimate is revised and in any
future reporting periods affected. In particular,
information about significant areas of estimation
uncertainty and critical judgements in applying
accounting policies that have the most significant
effect on the amount recognised in the financial
statements are set out below:
(i) Measurement of recoverability of cash generating
units ("CGUs")
Impairment reviews are performed by
management annually to assess the carrying
value of CGUs containing goodwill. The
recoverable amounts of CGUs have been
determined based on value-in-use calculations.
These calculations require the use of estimates.
Refer to note 12.
(ii) Intangible assets
The estimation of useful lives of intangible assets
such as distribution networks have been based on
historical experience. The useful lives are reviewed
at least once per year and adjustments to useful
lives are made when considered necessary.
(iii) Valuation of equity accounted investees
An assessment of the carrying value of
investments in equity accounted investees is
performed at least annually and considers
objective evidence for impairment on each
investment, taking into account observable
data on the investment, the status or context of
markets, its own view of fair value, and its long-
term investment intentions. The assessment also
requires judgements about the expected future
performance and cash flows of the investment.
(iv) Leases
Comvita assesses at lease commencement
whether it is reasonably certain to exercise
extension options where included in the contract,
and where it is reasonably certain, the extension
period has been included in the lease liability
calculation.
(v) Recoverability of deferred tax assets
The utilisation of tax loss carry-forwards is
dependent on expected future taxable profits in
excess of the profits from the reversal of existing
taxable temporary differences. This recognition
is based on current budgets and financial
forecasts completed by management.
(vi) Valuation of biological assets
The fair value of biological assets is assessed
on an annual basis which involves reviewing the
number of operational hives in use as well as
ensuring the value per hive is in line with guidance
provided by the Ministry of Primary Industries,
refer note 15.
Notes
TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
3
COMVITA.CO.NZ
COMVITA FINANCIAL STATEMENTS 2022
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3. SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of consolidation
(i) Business combinations
Business combinations are accounted for using the
acquisition method as at the acquisition date, which is
the date on which control is transferred to the Group,
except for entities under common control, which are
accounted for using the pooling of interest method.
(ii) Subsidiaries
Subsidiaries are entities controlled by the Group. Control
exists when the Group has the power to govern the
financial and operating policies of an entity so as to
obtain benefits from its activities. In assessing control,
potential voting rights that presently are exercisable
are taken into account. The financial statements of
subsidiaries are included in the consolidated financial
statements from the date that control commences until
the date that control ceases.
(iii) Investments in equity accounted investees
Associates and joint ventures are those entities in which
the Group has significant influence, but not control, over
the financial and operating policies. Associates and joint
ventures are accounted for using the equity method
(equity accounted investees). The consolidated financial
statements include the Group’s share of the income
and expenses of equity accounted investees, after
adjustments to align the accounting policies with those
of the Group, from the date that significant influence or
joint control commences until the date that significant
influence or joint control ceases.
(b) Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are translated to
the respective functional currencies of Group entities
at exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign
currencies at the reporting date are translated to the
functional currency at the exchange rate at that date.
(ii) Foreign operations
The assets and liabilities of foreign operations with
currencies different to the Company including goodwill
and fair value adjustments arising on acquisition, are
translated to New Zealand dollars at exchange rates at
the reporting date. The income and expenses of such
foreign operations are translated to New Zealand dollars
at exchange rates at the dates of the transactions.
Foreign currency differences are recognised in the
foreign currency translation reserve ("FCTR").
(c) Financial assets and financial liabilities
(i) Classification
The Group classifies its financial assets in the following
measurement categories:
• those to be measured subsequently at fair value
either through other comprehensive income
("FVOCI"), or through profit or loss ("FVPL"), and
• those to be measured at amortised cost.
(ii) Measurement
At initial recognition, the Company measures a financial
asset at its fair value plus, in the case of a financial
asset not at FVPL, transaction costs that are directly
attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at FVPL are
expensed in profit or loss.
Financial assets with embedded derivatives are
considered in their entirety when determining whether
their cash flows are solely payment of principal and
interest.
Debt instruments
Subsequent measurement of debt instruments depends
on the Group business model for managing the asset
and the cash flow characteristics of the asset. There
are three measurement categories into which the Group
classifies its debt instruments:
• Amortised cost: Assets that are held for collection
of contractual cash flows where those cash
flows represent solely payments of principal and
interest are measured at amortised cost. Interest
income from these financial assets is included in
finance income using the effective interest rate
method. Any gain or loss arising on derecognition is
recognised directly in profit or loss and presented in
other gains/(losses) together with foreign exchange
gains and losses. Impairment losses are presented
as a separate line item in the income statement.
• FVOCI: Assets that are held for collection of
contractual cash flows and for selling the financial
assets, where the assets’ cash flows represent
solely payments of principal and interest, are
measured at FVOCI. Movements in the carrying
amount are taken through other comprehensive
income ("OCI"), except for the recognition of
impairment gains or losses, interest income and
foreign exchange gains and losses which are
recognised in profit or loss. When the financial
asset is derecognised, the cumulative gain or loss
previously recognised in OCI is reclassified from
equity to profit or loss and recognised in other
gains/(losses). Interest income from these financial
assets is included in finance income using the
effective interest rate method. Foreign exchange
gains and losses are presented in other gains/
(losses) and impairment expenses are presented as
a separate line item in the income statement.
• FVPL: Assets that do not meet the criteria
for amortised cost or FVOCI are measured at
FVPL. A gain or loss on a debt investment that is
subsequently measured at FVPL is recognised in
profit or loss and presented net within other gains/
(losses) in the period in which it arises.
Equity instruments
The Group subsequently measures all equity investments
at fair value. Where the Group’s management has
elected to present fair value gains and losses on
equity investments in OCI, there is no subsequent
reclassification of fair value gains and losses to profit
or loss following the derecognition of the investment.
Dividends from such investments continue to be
recognised in profit or loss as other income when the
group’s right to receive payments is established.
Changes in the fair value of financial assets at FVPL
are recognised in other gains/(losses) in the income
statement loss as applicable. Impairment losses (and
reversal of impairment losses) on equity investments
measured at FVOCI are not reported separately from
other changes in fair value.
Accounting for finance income and expense is discussed
in note 3(m).
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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3. SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
(d) Financial instruments
(i) Non-derivative financial instruments
Non-derivative financial instruments comprise
investments in equity securities, trade and other
receivables, cash and cash equivalents, loans and
borrowings, and trade and other payables.
Non-derivative financial instruments are recognised
initially at fair value plus, for instruments not at FVPL,
any directly attributable transaction costs.
A financial instrument is recognised if the Group
becomes a party to the contractual provisions of the
instrument. Financial assets are derecognised if the
Group’s contractual rights to the cash flows from the
financial assets expire or if the Group transfers the
financial asset to another party without retaining
control or substantially all risks and rewards of the
asset. Regular way purchases and sales of financial
assets are accounted for at trade date, i.e., the date
that the Group commits itself to purchase or sell
the asset. Financial liabilities are derecognised if the
Group’s obligations specified in the contract expire or
are discharged or cancelled.
Cash and cash equivalents comprise cash balances and
demand deposits. Bank overdrafts that are repayable
on demand and form an integral part of the Group’s
cash management are included as a component of
cash and cash equivalents for the purpose of the
statement of cash flows.
Accounting for finance income and expense is
discussed in note 3(m).
Instruments at fair value through the income statement
An instrument is classified as at FVPL if it is held
for trading or is designated as such upon initial
recognition. Financial instruments are designated
at FVPL if the Group manages such investments
and makes purchase and sale decisions based on
their fair value. Upon initial recognition, attributable
transaction costs are recognised in the income
statement when incurred. Subsequent to initial
recognition, financial instruments are measured at
fair value, and changes therein are recognised in the
income statement.
(ii) Derivative financial instruments
The Group uses derivative financial instruments to
hedge its exposure to foreign exchange and interest
rate risks arising from operational, financing and
investment activities. In accordance with its treasury
policy, the Group does not hold or issue derivative
financial instruments for trading purposes. However,
derivatives that do not qualify for hedge accounting
are accounted for as financial instruments designated
at FVPL.
Derivative financial instruments are recognised initially
at fair value and transaction costs are expensed
immediately. Subsequent to initial recognition,
derivative financial instruments are stated at fair
value. The gain or loss on remeasurement to fair value
is recognised immediately in the income statement.
However, where derivatives qualify for hedge
accounting, recognition of any resultant gain or loss
depends on the nature of the hedging relationship .
Cash flow hedges
Changes in the fair value of the derivative hedging
instrument designated as a cash flow hedge are
recognised in other comprehensive income and presented
in equity in the hedging reserve to the extent that
the hedge is effective. To the extent that the hedge is
ineffective, changes in fair value are recognised in the
income statement.
If the hedging instrument no longer meets the criteria
for hedge accounting, expires or is sold, terminated
or exercised, then hedge accounting is discontinued
prospectively. The cumulative gain or loss previously
recognised in equity remains there until the forecast
transaction occurs. The amount recognised in equity is
transferred to the income statement in the same period
that the hedged item affects the income statement.
(e) Share capital
(i) Ordinary shares
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of ordinary
shares and share entitlements are recognised as a
deduction from equity.
(ii) Repurchase of share capital
When share capital recognised as equity is
repurchased, the amount of the consideration paid,
including directly attributable costs, is recognised
as a deduction from equity. Repurchased shares are
classified as treasury shares and are presented as a
deduction from total equity.
(f) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured
at cost less accumulated depreciation and impairment
losses.
Cost includes expenditures that are directly
attributable to the acquisition of the asset. The cost of
self-constructed assets includes the cost of materials
and direct labour, any other costs directly attributable
to bringing the asset to a working condition for
its intended use, and the costs of dismantling and
removing the items and restoring the site on which
they are located. Purchased software that is integral
to the functionality of the related equipment is
capitalised as part of that equipment.
When parts of an item of property, plant and
equipment have different useful lives, they are
accounted for as separate items (major components)
of property, plant and equipment
(ii) Subsequent costs
The cost of replacing part of an item of property, plant
and equipment is recognised in the carrying amount
of the item if it is probable that the future economic
benefits embodied within the part will flow to the
Group and its cost can be measured reliably. The costs
of the day-to-day servicing of property, plant and
equipment are recognised in the income statement as
incurred.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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3. SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
(f) Property, plant and equipment cont.
(iii) Depreciation
Depreciation is recognised in the income statement on
a straight-line basis over the estimated useful lives of
each part of an item of property, plant and equipment.
Land is not depreciated.
The estimated useful lives for the current and
comparative periods are as follows:
• Buildings up to 50 years
• Plant and machinery 2 - 20 years
• Vehicles 4 -17 years
• Office equipment, furniture and fittings 2 - 15 years
• Bearer plants 100 years
Depreciation methods, useful lives and residual values are
reassessed at the reporting date.
(g) Biological assets
Biological assets are measured at fair value less point-
of-sale costs, with any change therein recognised in the
income statement. Point-of-sale costs include all costs
that would be necessary to sell the assets. Agricultural
produce from biological assets is transferred to inventory
at fair value, by reference to market prices for honey, less
estimated point-of-sale costs at the date of harvest.
(h) Intangible assets and goodwill
(i) Goodwill
Goodwill that arises on the acquisition of subsidiaries
and other business combinations is presented within
intangible assets. Goodwill is measured at cost less
accumulated impairment losses.
(ii) Research and development
Expenditure on research activities, undertaken with
the prospect of gaining new scientific or technical
knowledge and understanding, is recognised in the
income statement when incurred.
Development activities involve a plan or design for
the production of new or substantially improved
products and processes. Development expenditure is
capitalised only if development costs can be measured
reliably, the product or process is technically and
commercially feasible, future economic benefits are
probable, and the Group intends to and has sufficient
resources to complete development and to use or sell
the asset. The expenditure capitalised includes the
cost of materials, direct labour and overhead costs
that are directly attributable to preparing the asset
for its intended use. Other development expenditure
is recognised in the income statement when incurred.
Capitalised development expenditure is measured at
cost less accumulated amortisation and accumulated
impairment losses.
(iii) Subsequent expenditure
Subsequent expenditure is capitalised only when it
increases the future economic benefits embodied
in the specific asset to which it relates. All other
expenditure, including expenditure on internally
generated goodwill and brands, is recognised in the
income statement when incurred.
(iv) Amortisation
Amortisation is recognised in the income statement on
a straight-line basis over the estimated useful lives of
intangible assets, other than goodwill, from the date
that they are available for use. The estimated useful
lives for the current and comparative periods are as
follows:
• Intellectual property and
other intangible assets 3 – 20 years
• Software 2 – 25 years
(i) Inventories
Inventories are measured at the lower of cost and net
realisable value. The cost of inventories is based on the
weighted average principle, and includes expenditure
incurred in acquiring the inventories and bringing them
to their existing location and condition. In the case of
manufactured inventories and work in progress, cost
includes an appropriate share of production overheads
based on normal operating capacity. Net realisable value
is the estimated selling price in the ordinary course of
business, less the estimated costs of completion and
selling expenses. A review of inventory classifications has
been completed during the year. Comparatives have been
updated to reflect the new classification.
The cost of items transferred from biological assets is
their fair value less point-of-sale costs at the date of
transfer.
(j) Impairment
The carrying amounts of the Group’s assets are reviewed
at each reporting date to determine whether there is any
objective evidence of impairment.
An impairment loss is recognised whenever the carrying
amount of an asset exceeds its recoverable amount.
Impairment losses directly reduce the carrying amounts of
assets and are recognised in the income statement.
(i) Impairment of receivables
The group assesses on a forward-looking basis the
expected credit losses associated with its debt
instruments carried at amortised cost and FVOCI. The
impairment methodology applied depends on whether
there has been a significant increase in credit risk.
For trade receivables, the company applies the
simplified approach permitted by IFRS 9, which
requires expected lifetime losses to be recognised from
initial recognition of the receivables.
The recoverable amount of the Group’s investments
in receivables carried at amortised cost is calculated
as the present value of estimated future cash
flows. Impairment losses on an individual basis are
determined by an evaluation of the exposures on
an instrument by instrument basis. All individual
instruments that are considered significant are subject
to this approach.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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3. SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
(j) Impairment continued
(ii) Non-financial assets
An impairment loss is recognised if the carrying
amount of an asset or its CGUs exceeds its recoverable
amount. A cash-generating unit is the smallest
identifiable asset group that generates cash flows
that are largely independent from other assets and
groups. Impairment losses are recognised in the
income statement. Impairment losses recognised in
respect of cash-generating units are allocated first to
reduce the carrying amount of any goodwill allocated
to the units and then to reduce the carrying amount
of the other assets in the unit (group of units) on a
pro rata basis. When an event occurring after the
impairment was recognised causes the amount of the
impairment to decrease, the decrease in impairment
loss is reversed through profit or loss.
The recoverable amount of an asset or CGUs is the
greater of its value in use and its fair value less costs
to sell. In assessing value in use, the estimated future
cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset.
(k) Employee benefits
Share-based payment transactions
The grant date fair value of entitlements granted to
employees is recognised as an employee expense, with
a corresponding increase in equity, over the period in
which the employees become unconditionally entitled
to the entitlements. The amount recognised as an
expense is adjusted to reflect the actual number of share
entitlements that vest.
(l) Revenue
Revenue from the sale of goods is measured at the fair
value of the consideration received or receivable, net
of returns and allowances, trade discounts and volume
rebates. Revenue is recognised at the point of time
performance obligations are satisfied by transferring
control of goods to the customer. For wholesale sales,
control passes to the customer in accordance with the
individual terms of the contract of sale – for domestic
sales this is ordinarily on delivery to the customer’s
premises and acceptance by the customer. For in-store
sales, control passes to the customer at point of sale. For
online sales, the order along with delivery to the customer
are considered to comprise a single performance
obligation, therefore control is considered to pass to the
customer on delivery of the goods.
(m) Finance income and expenses
Finance income comprises interest income on funds
invested, foreign exchange gains, dividend income and
gains on the disposal of FVOCI financial assets that are
recognised in the income statement. Interest income
is recognised as it accrues, using the effective interest
method. Dividend income is recognised on the date that
the Group’s right to receive payment is established, which
in the case of quoted securities is the ex-dividend date.
Finance expenses comprise interest expense on
borrowings, foreign exchange losses, unwinding of the
discount on provisions, impairment losses recognised
on financial assets (except for trade receivables) and
losses on the disposal of FVOCI financial assets that
are recognised in the income statement. All borrowing
costs are recognised in the income statement using the
effective interest method.
(n) Income tax expense
Income tax expense comprises current and deferred tax.
Income tax expense is recognised in the income statement
except to the extent that it relates to items recognised in
OCI, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable
income for the period, using tax rates enacted or
substantively enacted at the reporting date, and any
adjustment to tax payable in respect of previous periods.
Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
amounts used for taxation purposes. Deferred tax is not
recognised for the following temporary differences: the
initial recognition of goodwill, the initial recognition of
assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor
taxable profit, and differences relating to investments
in subsidiaries to the extent that they probably will
not reverse in the foreseeable future. Deferred tax is
measured at the tax rates that are expected to be applied
to the temporary differences when they reverse, based on
the laws that have been enacted or substantively enacted
by the reporting date.
A deferred tax asset is recognised to the extent that it
is probable that future taxable profits will be available
against which temporary differences can be utilised.
Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable
that the related tax benefit will be realised. Additional
income taxes that arise from the distribution of dividends
are recognised at the same time as the liability to pay the
related dividend is recognised.
(o) Earnings per share
The Group presents basic and diluted earnings per
share ("EPS") data for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable to
ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding during the
period. Diluted EPS is determined by adjusting the profit
or loss attributable to ordinary shareholders and the
weighted average number of ordinary shares outstanding
for the effects of all dilutive potential ordinary shares,
which comprise share entitlements granted to employees.
(p) Segments
Segment results that are reported to the CEO include
costs directly attributable to a segment as well as those
that can be allocated on a reasonable basis. Unallocated
items comprise mainly head office expenses.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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3. SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
(q) New and amended standards adopted by the
group
The accounting policies applied in these consolidated
financial statements are the same as those applied in the
Group’s consolidated financial statements as at and for
the year ended 30 June 2021 .There are no new standards
that are not yet effective that would be expected to have
a material impact on the Group, in the current or future
reporting periods, and foreseeable future transactions.
4. SEGMENT REPORTING
Segment information is presented in the 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.
The Company is organised primarily by geographic
location of its subsidiaries.
The Group has five reportable segments as described
below:
Greater China This segment reports both revenue
and related costs of the China and
Hong Kong markets.
ANZ Australia and New Zealand (ANZ)
segment captures both revenue and
related costs for the ANZ market.
Rest of Asia This segment captures both revenue
and related costs of all of our Asian
operations and customers excluding
Greater China.
North America This segment captures both revenue
and related costs for sales to
customers in North America.
EMEA The Europe, Middle East and Africa
(EMEA) segment captures both
revenue and related costs for the
EMEA markets.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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4. SEGMENT REPORTING (CONTINUED)
For the year ended 30 June
In thousands of New Zealand dollars
Greater ChinaANZRest of AsiaNorth AmericaEMEA
Total
reportable
segments
Other
segmentsTotal
2022202120222021202220212022202120222021202220212022202120222021
Contribution segments
Revenue
96,92493,07634,69632,44427,33725,34631,79324,7355,1245,060195,874180,66113,03511,073208,909191,734
Contribution
22,95819,90811,21110,2186,5856,3678,4144,733833549,25141,2611,441(791)50,69240,470
Non attributable
(other corporate expenses)
(32,486)(31,507)
Other income (note 5)
1,9433,220
Financial income and expenses (note 6)
(2,837)226
Share of profit of equity accounted investees (note 16b)
(187)992
Net profit before tax
17,12513,401
Geographical segments
30 June 202230 June 2021
In thousands of New Zealand dollars
Revenue
Non-current
assets
Revenue
Non-current
assets
Greater China
96,92437,39894,29937,766
ANZ
35,74297,27825,52592,528
Rest of Asia
27,33933431,252506
North America
42,42313032,135158
EMEA
5,1241414,97839
Other countries
1,3577,9913,5456,332
Total208,909143,272191,734137,329
5. OTHER INCOME
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Government subsidies270734
Government grants1,3312,052
Gain on disposal of property, plant and equipment110222
Insurance claims received-195
Change in fair value of biological assets4817
Other 184-
Total other income1,9433,220
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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6. FINANCIAL INCOME AND EXPENSES
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Interest income290252
Dividend income-9
Net foreign exchange gain-2,212
Finance income2902,473
Interest expense on financial liabilities measured at amortised cost(2,535)(2,247)
Net foreign exchange loss(592)-
Finance expense(3,127)(2,247)
Net finance (expenses)/income(2,837)226
7. PERSONNEL EXPENSES
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Wages and salaries40,27539,548
KiwiSaver – employer contribution698556
Movement in long-service leave provision (271)125
Equity settled share based payment transactions687694
Total personnel expenses41,38940,923
8. ADMINISTRATIVE EXPENSES
The following items of expenditure are included in administrative expenses:
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Auditors’ remuneration:
To KPMG for audit services (i)369323
To KPMG for audit related services-7
To KPMG for tax services (ii)107266
To Mercer & Hole (UK auditors)2530
Insurance (iii)173113
Doubtful debts recovered(112)(147)
Bad debts written off 9279
Restructure costs113783
Change in fair value of biological assets(48)-
Directors fees (note 28) (iv)592573
Directors – other costs 1818
Other legal and professional expenses444540
(i) Audit services include fees for the annual audit of the financial statements of the group and its foreign subsidiaries
based in China and Hong Kong and the review of the interim financial statements
(ii) Tax services is for tax compliance and advisory work
(iii) Only the portion of this expense which is included in administrative expenses
(iv) Refer to Statutory Information
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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9. INCOME TAX EXPENSE IN THE INCOME STATEMENT
In thousands of New Zealand dollars
Note2022
30 June
2021
30 June
Current tax expense
Current period1,3883,009
Adjustment for prior periods297(16)
Total current income tax expense1,6852,993
Deferred tax expense
Origination and reversal of temporary differences102,656929
Total deferred income tax expense2,656929
Total income tax expense4,3413,922
Reconciliation of effective tax expense
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Profit for the period12,7849,479
Total income tax expense4,3413,922
Net profit before tax17,12513,401
Income tax using the Company’s domestic tax rate of 28% (2021: 28%)4,7953,752
Effect of different tax rates in foreign jurisdictions (284)(614)
Non-deductible expenses9341,497
Non-assessable income(392)(817)
Imputation credits attached to dividends received(257)-
Under provided in prior periods(455)104
Total income tax expense4,3413,922
Income tax recognised directly in other comprehensive income
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Derivatives(1,304)(328)
Other items317-
Total income tax recognised directly in other comprehensive income(987)(328)
Imputation credit account
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Imputation credits available for use in subsequent reporting periods6,9348,324
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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10. DEFERRED TAX ASSETS AND LIABILITIES
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
In thousands of
New Zealand dollars
AssetsLiabilitiesNet
202220212022202120222021
Property, plant &
equipment
--(1,558)(1,020)(1,558)(1,020)
Intangible assets--(1,864)(1,962)(1,864)(1,962)
Biological assets--(70)(56)(70)(56)
Inventories3,0443,263--3,0443,263
Derivatives1,769464--1,769464
Investments12478--12478
Other items1,5161,543--1,5161,543
Tax losses9342,937--9342,937
Tax assets/(liabilities)7,3878,285(3,492)(3,038)3,8955,247
Set-off of tax(1,628)(1,076)1,6281,076--
Net tax assets/(liabilities)5,7597,209(1,864)(1,962)3,8955,247
Movement in temporary differences during the year
In thousands of New Zealand
dollars
Balance
1 July 2021
Recognised in the
income statement
Recognised in other
comprehensive
income
Balance
30 June 2022
Property, plant & equipment(1,020)(538)-(1,558)
Intangible assets(1,962)98-(1,864)
Biological assets(56)(14)-(70)
Inventories3,263(219)-3,044
Derivatives464-1,3041,768
Investments7846-124
Other items1,543(26)-1,517
Tax losses2,937(2,003)-934
Total5,247(2,656)1,3043,895
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items:
In thousands of New Zealand dollars
2022202220212021
Gross AmountTax EffectGross AmountTax Effect
Tax loss carry-forwards5,4271,3965,3591,373
Intangible assets601178574172
Total6,0281,5745,9331,545
The tax loss carry-forwards do not expire under current tax legislation. They relate to capital losses in Australia, and
losses on acquisition in the United Kingdom.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
18
11. PROPERTY, PLANT & EQUIPMENT
In thousands of New Zealand
dollars
LandBuildingsOwned
plant &
machinery
VehiclesBearer
plants
Office
equipment,
furniture &
fittings
Capital
WIP
Total
Cost
Balance at 30 June 202011,45526,65828,4812,3535,9506,5314,73986,167
Additions/transfers-1,5102,050432-2,9184,26911,179
Disposals(8)(663)(954)(176)-(606)-(2,407)
Effect of movements in exchange
rates
10612127(219)(2)(165)
Balance at 30 June 202111,45727,51129,5892,6105,9778,6249,00694,774
Additions/transfers(4)6481,205332-153,9896,185
Disposals-(187)(236)(247)-(315)-(985)
Effect of movements in exchange
rates
684898131853442758
Balance at 30 June 202211,52128,02030,6562,7086,1628,66812,997100,732
Accumulated Depreciation
Balance at 30 June 2020-(7,384)(15,027)(1,686)(447)(4,794)-(29,338)
Depreciation -(1,098)(2,170)(209)(68)(885)-(4,430)
Disposals-630891161-479-2,161
Effect of movements in exchange
rates
-(2)(7)(1)(2)190-178
Balance at 30 June 2021-(7,854)(16,313)(1,735)(517)(5,010)-(31,429)
Depreciation -(1,113)(2,016)(291)(67)(1,190)-(4,677)
Disposals-29196230-305-760
Effect of movements in exchange
rates
-(20)(63)(6)(20)(309)-(418)
Balance at 30 June 2022-(8,958)(18,196)(1,802)(604)(6,204)-(35,764)
Carrying amount
At 30 June 202011,45519,27413,4546675,5031,7374,73956,829
At 30 June 202111,45719,65713,2768755,4603,6149,00663,345
At 30 June 202211,52119,06212,4609065,5582,46412,99764,968
Depreciation charge in the income statement
Depreciation is allocated to sales, marketing expenses, selling and distribution expenses, and administrative and other operating
expenses.
.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
19
12. INTANGIBLE ASSETS AND GOODWILL
In thousands of New Zealand dollars
GoodwillIntellectual
property and
other intangible
assets
SoftwareTotal
Cost
Balance at 30 June 202027,73616,2569,79353,785
-
Additions
-204162366
Disposals
--(3)(3)
Effect of movements in exchange
rates
(137)60(16)(93)
Balance at 30 June 2021
27,59916,5209,93654,055
Additions
-3244,232
*
4,556
Disposals
-(11)(5,908)(5,919)
Effect of movements in exchange
rates
(848)8593849
Balance at 30 June 2022
26,75117,6928,29852,741
Accumulated Amortisation
Balance at 30 June 2020-
(5,452)(8,866)(14,318)
Amortisation -
(1,226)(453)(1,679)
Disposals-
-11
Effect of movements in exchange
rates
-
(29)16(13)
Balance at 30 June 2021-
(6,707)(9,302)(16,009)
Amortisation -(1,263)(743)(2,006)
Disposals-
115,9305,941
Effect of movements in exchange
rates
-
(237)(28)(265)
Balance at 30 June 2022-
(8,196)(4,143)(12,339)
Carrying Amount
At 30 June 202027,73610,80492739,467
At 30 June 202127,5999,81363438,046
At 30 June 202226,7519,4964,15540,402
*
Software additions materially relate to customised software code where Comvita retains control of the code and its
future benefits.
Amortisation charge in the income statement
Amortisation is allocated to cost of sales, marketing expenses, selling and distribution expenses, and administrative
and other operating expenses.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
20
12. INTANGIBLE ASSETS AND GOODWILL (CONTINUED)
Impairment testing for cash-generating units containing goodwill ("CGU")
For the purpose of impairment testing, goodwill is allocated to the Group’s CGUs which represent the
lowest level within the Group at which the goodwill is monitored for internal management purposes.
The aggregate carrying amounts of goodwill allocated to each CGU are as follows:
In thousands of New Zealand dollars
Segment
(note 4)
2022
30 June
2021
30 June
Greater ChinaGreater China24,91725,765
Apiaries 1,7661,766
Other6868
Total goodwill26,75127,599
Greater China CGU:
Value in use was determined by discounting the future cash flows generated from the continuing use of the
unit and were based on the following key assumptions:
2022
30 June
2021
30 June
Anticipated annual revenue growth included in the cash flow projections for the
combined CGU’s (normalised) for the years 2023 to 2027
5% to 12.7%6.3% to 19.4%
Post tax discount rate 11.3%12.5%
Discount rate based on the average weighted cost of capital which was based on
debt leveraging of:
15%20%
-at a cost of debt rate of:6.4%12.3%
Terminal growth rate applied beyond June 20272.0%2.0%
Cash flows were projected on actual operating results, the 30 June 2023 budget and business plan.
Sensitivity to changes in assumptions
In thousands of New Zealand dollars
2022
30 June
2021
30 June
The recoverable amount of the CGU exceeds its carrying amount by 136,400129,700
If projected earnings before interest and tax ("EBIT") is reduced by 10% year on
year, it changes the amount the recoverable amount exceeds its carrying amount to
115,200103,500
The post tax discount rate for the recoverable amount to equal carrying amount is
calculated at
33.3%33.6%
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
21
12. INTANGIBLE ASSETS AND GOODWILL (CONTINUED)
Apiaries:
Value in use was determined by discounting the future cash flows generated from the continuing use of
the unit and were based on the following key assumptions:
2022
30 June
2021
30 June
Anticipated annual revenue growth included in the cash flow projections for the
combined CGU’s (normalised) for the years 2023 to 2032
0% to 21.9%0% to 23.2%
Post tax discount rate
10.7%10.0%
Discount rate based on the average weighted cost of capital which was based on
debt leveraging of:
15%20%
-at a cost of debt rate of:7.8%4.4%
Terminal growth rate applied beyond June 2032
2.0%2.0%
Cash flows were projected on actual operating results, the 30 June 2023 budget and business plan.
Sensitivity to changes in assumptions:
In thousands of New Zealand dollars
2022
30 June
2021
30 June
The recoverable amount of the CGU exceeds its carrying amount by
23,7623,186
If projected EBIT is reduced by 10% year on year, it changes the amount the
recoverable amount exceeds its carrying amount to
18,354575
The post tax discount rate for the recoverable amount to equal
carrying amount is calculated at
16.6%11%
The percentage movement in yields for each mānuka honey grade range
(with the resulting difference being added to non-mānuka) for the
recoverable amount to equal the carrying amount
32.6%
8.5%
The recoverable amount of the CGU has increased by $20.6 million due to revised planting and yield
assumptions based on actual results achieved.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
22
13. LEASES
The Group leases warehouses, retail stores, administration premises, vehicles, and land used for hive
placements referred to as mānuka forests in the table below.
Right of use assets
BuildingsVehiclesMānuka
forests
Total
In thousands of New Zealand dollars
Balance at 30 June 20207,0441,0983,30511,447
Additions-5872,7663,353
Modifications2,949131-3,080
Depreciation(3,493)(714)(301)(4,508)
Effect of movement in exchange rates(336)(1)-(337)
Balance at 30 June 20216,1641,1015,77013,035
Additions1,9526356663,253
Modifications274--274
Disposals(286)(34)-(320)
Depreciation(3,310)(666)(337)(4,313)
Effect of movement in exchange rates1803-183
Balance at 30 June 20224,9741,0396,09912,112
Amounts recognised in the income statement
2022
30 June
2021
30 June
Interest on lease liabilities320375
Variable lease payments not included in the measurement of lease liabilities4,9573,373
Expenses relating to short-term leases582887
Expenses relating to leases of low-value assets, excluding short-term leases of
low-value assets
2215
Lease liabilities
As at 30 June 2022, the weighted average rate applied was 5.4%. Total cash outflow for right of use leases
for the year ended 30 June 2022 was $4.3 million (2021: $4.4m).
Maturity analysis - contractual undiscounted cash flow
Non-cancellable lease rentals ae payable as follows:
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Less than 1 year
4,2874,436
Between one and five years5,3524,433
Greater than five years
3,9183,633
Total13,55712,502
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
23
14. CAPITAL COMMITMENTS
The total capital commitment is $6.0 million (2021: $2.0 million over 1 year) and will be paid over the next year.
The capital commitments relates to manuka forest costs, digital transformation and other capital projects.
15. BIOLOGICAL ASSETS
Total
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Bees3,3153,305
Olive leaf563509
Total biological assets3,8783,814
Bees
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Balance at beginning of the year3,3053,370
Fair value increase348-
Net movement in operational hives(338)(65)
Balance at the end of the year3,3153,305
Number of operational hives
Balance at beginning of the year19,66720,125
Net movement in operational hives(2,114)(458)
Balance at the end of the year17,55319,667
The Group is exposed to some risks related to owning bees, primarily the risk of damage from climatic
changes and diseases. The Group has processes in place aimed at monitoring and mitigating those risks,
through hiring of experienced beekeepers, the intensive maintenance of beehives and disease prevention
programmes.
Fair value hierarchy
The Group’s bees are level 3 on the fair value hierarchy, being calculations for which inputs are not based on
observable market data (unobservable inputs).
As the beehives are continually regenerating the fair value assigned to a hive is on a $ per kg basis, plus queen
and brood. The value attributed to these quantities has been sourced from the Ministry of Primary Industries.
The value per hive is $160 (2021: $141).
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
24
16. INVESTMENTS
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Equity accounted investees10,9576,841
Investment in unlisted shares88
Total investments10,9656,849
(a) Investments in Equity Accounted Investees comprises:
Country of
Incorporation
Ownership
Interest Held
Balance
Date
Principal
Activity
Makino Station Limited “Makino”New Zealand50%30 June
Apiary and land
ownership
Medibee Pty Limited “Medibee”
Australia50%30 June Apiary
Apiter S.A “Apiter”Uruguay20%31 July
Manufacturing, selling
and distribution
Caravan Honey Company
"Caravan Honey"
U.S.A50%31 December
Development and
commercialisation
of products
Gan Supply JV Limited "Gan Supply"
New Zealand 33%30 June
Non-trading and in
final stages
of wind up
Medibee
Medibee Apiaries has a funding arrangement with HSBC and Comvita has signed a several guarantee for its
share of the loan facility, which is AUD $4,500,000 at balance date.
Caravan Honey Company
On 22 December 2021 Comvita Limited entered a stock purchase agreement to purchase 4,500,000 shares for
USD$3,379,500 in a newly established US domiciled joint venture entity, Caravan Honey Company. Comvita
currently has 50% ownership and joint control of this entity.
(b) Carrying value of Investments in Equity Accounted Investees
In thousands of New Zealand dollars
20222021
Balance at 1 July 6,8416,261
Acquisition (Caravan Honey)
5,092-
Share of (loss)/profit
(187)992
Dividends received (Gan Supply)
(743)(363)
Foreign exchange movements
(46)(49)
Balance at 30 June
10,9576,841
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
25
16. INVESTMENTS (CONTINUED)
(c) Loans to Equity Accounted Investees
In thousands of New Zealand dollars
20222021
Loan and interest receivable
Makino
4,0794,168
Apiter
1,109863
Balance at 30 June
5,1885,031
Makino
Interest is accrued on the balance of loan at a rate of 5.34% p.a. (2021: 5.34%). Interest income for the year
ended 30 June 2022 is $161,000 (2021: 161,000).
Apiter
The loan is denominated in USD. Interest is accrued on the balance of the loan at a rate of 3.5% p.a. (2021:
3.5%). Interest income for the year ended 30 June 2022 is $23,000 (2021: $19,000).
All loans to equity accounted investees are repayable at the discretion of shareholders.
(d) Transactions with Equity Accounted Investees
In thousands of New Zealand dollars
Sale of goods and servicesPurchases of goods and services
(including prepayments)
Transaction valueBalance due fromTransaction valueBalance owing to
2022
Makino 80
-1,135-
Apiter -
-323-
2021
Makino 67
968239
Apiter
32
332,944-
17. INVENTORY
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Raw materials76,61156,828
Work in progress5,5114,983
Finished goods50,03539,197
Total inventory132,157101,008
Inventory disposed of during the year ended 30 June 2022 has been recognised within cost of goods sold - $522,000
(2021: $900,000).
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
26
18. TRADE RECEIVABLES
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Gross receivable28,16623,971
Impairment(348)(448)
Total trade receivables27,81823,523
The aging of trade receivables at reporting date is as follows:
In thousands of New Zealand
dollars
Gross receivable
2022
Impairment
2022
Gross receivable
2021
Impairment
2021
Not past due22,954-18,499-
Past due 0-30 days3,426-2,929-
Past due 31-60 days523-569(68)
Past due 61-365 days1,263(348)1,974(380)
Past due > 365 days----
Total28,166(348)23,971(448)
The Company has not renegotiated the terms of any financial assets which would result in the carrying amount no longer
being past due or avoid a possible past due status.
Credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure
to credit risk for trade receivables at the reporting date by geographic region was:
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Australia3,6924,339
China12,65811,584
New Zealand6,9334,721
United States1,580996
United Kingdom1,129461
Hong Kong554456
Other regions1,272966
Total27,81823,523
19. SUNDRY RECEIVABLES
In thousands of New Zealand dollars
Note2022
30 June
2021
30 June
Loan receivable – key management personnel 282,7782,746
Prepayments 6,9974,360
Other receivables1,7511,326
Total sundry receivables11,5268,432
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
27
20. EMPLOYEE BENEFITS
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Annual leave1,8361,567
Performance accrual 4,0543,348
Accrued wages and salaries252599
Total current employee benefits6,1425,514
Long service leave (non-current)267539
Total employee benefits6,4096,053
21. TRADE AND OTHER PAYABLES
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Trade creditors18,3228,843
Accruals13,2989,799
Contingent consideration – equity accounted investees-164
Due to Directors3063
Total trade and other payables31,65018,869
22. CAPITAL AND RESERVES
Ordinary and partly paid redeemable share capital
In thousands of shares
Note 2022
30 June
2021
30 June
On issue at beginning of the year70,30069,780
Share issue - Leader Share Purchase & Loan scheme26a-738
Share issue - PSR Scheme138-
Acquisition of treasury stock(854)(370)
Supplier Partnership Group Share Scheme147152
Ordinary shares on issue at end of the year69,73170,300
Closing partly paid shares 26c363618
Total shares including part paid at end of the year70,09470,918
Treasury Stock
In thousands of shares
2022
30 June
2021
30 June
Treasury stock at beginning of the year22
Acquired on market854370
Issued - Leader Share Purchase & Loan scheme-(370)
Issued – PSR Scheme(55)-
Supplier Partnership Group Share Scheme(147)-
Total treasury stock at end of the year6542
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
28
22. CAPITAL AND RESERVES (CONTINUED)
Ordinary shares
All ordinary shares issued are fully paid and have no par value. The holders of ordinary shares are entitled
to receive dividends as declared from time to time and are entitled to one vote per share at meetings of
the Company. All shares rank equally with regard to the Company’s residual assets.
Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the
financial statements of foreign operations.
Hedging reserve
The hedging reserve comprises the cumulative change in the fair value of cash flow hedging instruments
related to hedged transactions that have not yet occurred.
Fair value reserve
The fair value reserve comprises cumulative change in the fair value of financial assets designated as fair
value through other comprehensive income.
Dividends
The following dividends were declared and paid by the Company:
In thousands of New Zealand dollars
2022
30 June
2021
30 June
$0.040 per ordinary share October 20212,893-
$0.025 per ordinary share March 20221,809-
Total4,702-
Capital management
The Group’s capital includes share capital, reserves and retained earnings. The Board’s policy is to
maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business. The Board of Directors monitors the geographic spread of
shareholders, as well as the return on capital.
Public share offerings and private offerings are made, where applicable. This and acquisitions are key to
ensuring the future development of the business.
The Board has an Executive Employee Share Scheme, a Leader Share Purchase and Loan Scheme and a
Performance Share Rights Scheme to ensure the employees hold an investment in the Group.
Other than the banking requirements, neither the Company nor any of its subsidiaries are subject to
externally imposed capital requirements.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
29
23. EARNINGS PER SHARE
Basic earnings per share - weighted average number of ordinary shares
In thousands of shares
2022
30 June
2021
30 June
Issued ordinary shares at beginning of year70,30069,780
Effect of shares issued during the year(213)(140)
Weighted average number of ordinary shares at the end of the year70,08769,640
Basic earnings per share (NZ cents)18.2413.61
Diluted earnings per share - weighted average number of ordinary shares
(diluted)
In thousands of shares
Weighted average number of ordinary shares (basic)70,08769,640
Effect of share entitlements issued 440107
Weighted average number of diluted shares at end of the year70,52769,747
Diluted earnings per share (NZ cents)18.1313.59
24. LOANS AND BORROWINGS
This note provides information about the contractual terms of the Group’s interest-bearing loans
and borrowings.
Terms and debt repayment schedule
In thousands of
New Zealand dollars
Facility
Local
Currency
CurrencyNominal
Interest rate
MaturityCarrying
Amount
Carrying
Amount
20222021
Secured bank loan
– Westpac NZ
20,000NZD4.35%July 202320,00020,000
Multi option credit line
– Westpac NZ
72,500NZD3.30%July 202323,300850
Total borrowings43,30020,850
Less current portion of
borrowings
--
Borrowings – non current43,30020,850
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
30
24. LOANS AND BORROWINGS (CONTINUED)
Covenants and security
The Group was in compliance with all banking covenants during the year and as at 30 June 2022.
All debt with Westpac New Zealand Limited is secured by way of registered first and exclusive Composite
Debentures and a General Security Agreement, cross collateralised, over all the assets, undertakings and
uncalled capital of all Charging Group companies and an interlocking supported guarantee between all
Charging Group companies.
“Charging Group” - Comvita Limited, Comvita New Zealand Limited, Comvita Holdings Pty Limited,
Comvita Australia Pty Limited, Comvita Holdings UK Limited and Comvita UK Limited.
Cash
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Cash17,75616,267
Less debt - non current(43,300)(20,850)
Net debt(25,544)(4,583)
Interest rate risk
At reporting date the interest rate profile of the Group’s interest-bearing financial instruments is the
balances of the loans above. The Group has a policy of ensuring that its exposure to interest rates for
borrowings is managed. Interest rate swaps have been entered into to achieve an appropriate mix of fixed
and floating rate exposure with the Group’s policy.
Sensitivity analysis
In managing interest rate risks the Group aims to reduce the impact of short-term fluctuations on the
Group’s earnings. Over the longer-term, however, permanent changes in interest rates will have an impact
on profit. At 30 June 2022 it is estimated that a general increase of one percentage point in interest rates
would decrease the Group’s profit before income tax by approximately $464,000 (30 June 2021: $129,000).
Other Facilities
Overdraft schedule
In thousands of New Zealand dollars
CurrencyInterest rate
2022
Interest rate
2021
Overdraft facility NZD – Westpac NZ750NZD8.75%7.25%
Overdraft facility GBP – Westpac NZ1,617GBP8.75%7.25%
Overdraft facility YEN – Westpac NZ494JPY8.75%7.25%
The balance drawn on each of these at 30 June 2022 is nil (2021: nil).
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
31
25. RECONCILIATION OF THE PROFIT FOR THE PERIOD WITH THE
NET CASH FROM OPERATING ACTIVITIES
In thousands of New Zealand dollars
Note
2022
30 June
2021
30 June
Profit for the period12,7849,479
Adjustments for:
Depreciation8,7078,670
Amortisation 122,0061,679
Share based payments899471
Supplier share scheme – inventory purchase504487
Fair value loss of biological assets 5(48)(17)
Share of loss/(profit) equity accounted investees 16b187(992)
Profit adjusted for non-cash items25,03919,777
Items relating to investing activities:
Interest income(285)(202)
Gain on disposal of property, plant & equipment(110)(222)
Change in trade payables (1,291)(128)
Bad debt written off-50
Movement in working capital items:
Change in inventories(31,149)11,671
Change in trade receivables(4,295)(5,797)
Change in sundry debtors and prepayments(3,095)824
Change in trade and other payables12,781(3,837)
Change in employee benefits3561,986
Change in tax payable277924
Change in deferred tax 1,352602
Change in working capital items from foreign currency translation
reserve
2,027(831)
Other movements:
Movement of deferred tax in equity987328
Foreign investor tax credits109-
Foreign currency reserve127(320)
Net cash from operating activities2,83024,825
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
32
26. EMPLOYEE SHARE SCHEMES
(a) Leader Share Purchase & Loan scheme
On 25 March 2021 Comvita Limited established a Leader Share Purchase & Loan scheme (“LSPLS”) to retain
key employees and materially align the interests of participants with those of shareholders, by making loans
available to eligible employees for the acquisition of fully paid ordinary shares in Comvita.
20222021
Employees in the LSPLS88
Number of shares held738,012738,012
% of share capital1.05%1.04%
(b) Performance Share Rights scheme
Comvita Limited has a Performance Share Rights (PSR’s) Scheme to incentivise Executives. Upon vesting
of the PSR’s, shares will be transferred from treasury stock or new shares will be issued in the capital of the
Company on the terms and conditions described in the Comvita Limited Performance Share Rights Scheme.
Share based payment expenses are recognised over the vesting period of these PSRs.
In thousands
20222021
Number of
entitlements
Number of
entitlements
Entitlements outstanding at beginning of period 147-
Entitlements granted 387147
Entitlements cancelled(23)-
Shares vested(53)-
Entitlements outstanding at end of year458147
A valuation of each PSR tranche is performed at grant date and a share based payment is recognised over
the vesting period of the PSR. The PSR’s currently on issue are valued using either the Monte Carlo model or
the share price at grant date, less the present value of estimated dividend payments during the period.
(c) Executive share scheme
Comvita Limited has an Executive Share Scheme called the Comvita Limited Partly Paid Share Scheme
which is winding down. As at 30 June 2022 there is 363,000 of outstanding entitlements (2021: 618,000).
The remaining 363,000 entitlements have their final opportunity to meet the hurdle rate in October 2022.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
N
O
.
33
27. FINANCIAL INSTRUMENTS
Overview
Exposure to credit, liquidity and market risks arises in the normal course of the Company’s business.
This note presents information about the Group’s exposure to each of the above risks, the Group’s
objectives, policies and processes for measuring and managing risk and the Group’s management of capital.
Further quantitative disclosures are included throughout these financial statements.
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk
management framework. The Audit and Risk Committee is designated to develop and monitor the Group’s
risk management policies. The committee reports regularly to the Board of Directors on its activities.
The Group’s risk management policies are established to identify and analyse the risks faced by the Group,
to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s
activities. The Group through its training and management standards and processes aims to develop
a disciplined and constructive control environment in which all employees understand their roles and
obligations.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers.
As the counterparty of financial instruments is Westpac New Zealand Limited, it is considered there is
minimal credit risk.
The majority of revenue is generated from retailers and consumers and there is some geographical
concentration of credit risk in China. In order to determine which customers are classified as having
payment difficulties, the Group applies a mix of duration and frequency of default. Trade receivables aging
are monitored on a monthly basis and the Company does not require collateral in respect of trade and other
receivables, however Personal Guarantees are obtained where the Company considers it is appropriate.
The Board has approved a credit policy under which new customers are analysed individually for credit
worthiness before the Group’s standard payment terms and conditions are offered. The Group’s review
includes reviewing references. Customers that fail to meet the Group’s benchmark creditworthiness may
transact with the Group only on a prepayment basis.
Where possible, our interest in goods sold are subject to retention of title clauses and a security interest is
registered on the Personal Property Securities Register (PPSR), so that in the event of non-payment the
Group may have a secured claim.
The Group’s policy is to provide financial guarantees only to subsidiaries and equity accounted investees.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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27. FINANCIAL INSTRUMENTS (CONTINUED)
Liquidity risk
Liquidity risk represents the Group’s ability to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure that it will have sufficient liquidity to meet its liabilities when
due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to
the Group’s reputation.
Due to the seasonal nature of raw materials supply the Group has credit lines in place to cover timing
differences to offset the mismatch of receipts and payments. The borrowings are by way of overdraft and
committed credit facilities.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters while optimising return on risk. The Group buys and sells derivatives, and also incurs financial
liabilities in order to manage market risks. All transactions are carried out within the Treasury Policy
guidelines set by the Board of Directors. Generally the Group seeks to apply hedge accounting in order to
manage volatility in the income statement.
Currency risk
The Group is exposed to currency risk on sales that are denominated in a currency other than its functional
currency, the New Zealand Dollar. The currencies in which transactions are primarily denominated are
United States Dollars, Japanese Yen, Australian Dollars, Hong Kong Dollars, British Pounds and Chinese
Yuan.
The Group manages foreign currency risk by hedging net foreign currency receipts. At any point in time the
Group hedges between 40% to 100% of its estimated net foreign currency receipts expected to be received
over the following 12 months, and between 0% to 75% in respect of 12-to-24-month net foreign currency
receipts. The Group uses a mixture of forward exchange contracts, collars and options to hedge its currency
risk.
Derivatives – assets and liabilities (hedged) and designated at fair value through the income statement
The Group’s Level 2 fair values for simple over-the-counter derivative financial instruments are based on
broker quotes. Those quotes are tested for reasonableness by discounting expected future cash flows
using market interest rate for a similar instrument at the measurement date. Fair values reflect the credit
risk of the instrument and include adjustments to take account of the credit risk of the Group entity and
counterparty when appropriate.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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27. FINANCIAL INSTRUMENTS (CONTINUED)
Financial instruments 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
2022
30 June
2021
30 June
Derivatives – liabilities (hedging instrument)(6,519)(1,648)
Total liabilities(6,519)(1,648)
Liquidity risk
The following table sets out the contractual maturities of financial liabilities including interest payments
and derivatives:
In thousands of New Zealand
dollars
Stmt of
financial
position
Contractual
cash flows
6 months or
less
6-12 months1-2 years2-5 years
2022
Non-derivative financial liabilities
Secured bank loans (43,300)(46,582)(819)(819)(44,944)-
Trade and other payables(31,650)(31,650)(31,650)---
Total non-derivative liabilities(74,950)(78,232)(32,469)(819)(44,944)-
Derivatives
Inflow-101,06525,58031,36038,0386,087
Outflow(6,519)(107,764)(27,629)(33,601)(40,233)(6,301)
Total derivatives(6,519)(6,699)(2,049)(2,241)(2,195)(214)
2021
Non-derivative financial liabilities
Secured bank loans (20,850)(21,355)(252)(252)(20,851)-
Trade and other payables(18,869)(18,869)(18,869)---
Total non-derivative liabilities(39,719)(40,224)(19,121)(252)(20,851)-
Derivatives
Inflow-43,73820,70118,5604,46413
Outflow(1,648)(45,537)(21,197)(19,350)(4,753)(237)
Total derivatives(1,648)(1,799)(496)(790)(289)(224)
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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27. FINANCIAL INSTRUMENTS (CONTINUED)
Currency risk
In thousands of New Zealand dollars
Group
2022
RMBAUDGBPHKDUSDOther
Trade receivables12,7423,5205235541,6131,813
Trade and other payables(2,033)(1,913)(425)(1,208)(1,800)(970)
Gross statement of financial position exposure10,7091,60798(654)(187)843
Forward exchange contracts (local currency)184,5007,25091538,15025,875270,000
2021
RMBAUDGBPHKDUSDOther
Trade receivables11,5843,606473 4561,2841,074
Trade and other payables(3,415)(1,512)(675)(721)(1,402)(923)
Gross statement of financial position exposure8,1692,094(202)(265)(118)151
Forward exchange contracts (local currency)66,3002,1501,10022,30012,450269,000
Sensitivity analysis
A 10% strengthening and 10% weakening of the NZD against the following currencies would have changed
the asset or liability values in the statement of financial position at 30 June 2022 through a change in equity
and the income statement by the amounts shown on the next page. This analysis assumes that all other
variables, in particular interest rates, remain constant. .
2022202220212021
EquityIncome statementEquityIncome statement
+10%-10%+10%-10%+10%-10%+10%-10%
AUD710(869)--210(257)--
GBP162(199)--198(242)--
USD
3,671(4,495)--1,623(1,984)--
HKD700(857)--375(458)--
RMB3,950(4,837)--1,285(1,565)--
JPY301(371)--317(387)--
Classification and Fair Values
The carrying amount of all assets and liabilities reflects the fair value. They are classified as follows:
ClassificationAsset or liability
Amortised costTrade and other receivables, cash and cash equivalents, trade and
other payables, loans and borrowings
Fair value through OCIDerivatives
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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28. RELATED PARTIES
Transactions with key management personnel
The key management personnel consists of the Leadership team the Company.
Key management and director compensation comprised:
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Director fees (note 8)592573
Short term employee benefits4,9654,778
KiwiSaver employer contribution154100
Share based payments 686692
Total6,397 6,143
Key management and director loans:
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Loan to CEO 450450
Loan to key management personnel – Leader Share Purchase & Loan
Scheme (note 26a)
2,3282,296
Total2,7782,746
At 30 June 2022 Directors and other key management personnel of the Company control 2.50% (2021: 2.37%)
of the voting shares of the Company.
NOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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28. RELATED PARTIES (CONTINUED)
Subsidiaries
Country of
Incorporation
Ownership
Interest Held
Balance
Date
Principal Activity
Comvita New Zealand LimitedNew Zealand100%30 JuneManufacturing and
marketing
Medibee LimitedNew Zealand100%30 JuneNot trading
Comvita Taiwan LimitedNew Zealand100%30 JuneNot trading
Bee & Herbal New Zealand LimitedNew Zealand100%30 JuneIP ownership
Comvita Landowner Share Scheme
Trustee Limited
New Zealand100%30 JuneApicultural land owner
share scheme
Kyoto Forests of New Zealand LimitedNew Zealand100% 30 JuneNot trading
Comvita Share Scheme Trustee
Limited
New ZealandManagement
control
30 JuneExecutive employee
share scheme
Comvita USA, Inc USA100%30 JuneSelling and distribution
Comvita Japan K.K.Japan100%30 JuneSelling and distribution
Comvita Korea Co Limited Korea100%30 JuneSelling and distribution
Comvita Food (China) LimitedChina100%31 DecemberSelling and distribution
Comvita Food (Hainan) Co. LtdChina100%31 December Selling and distribution
Comvita China LimitedHong Kong100%30 JuneSelling and distribution
Comvita Holdings HK LimitedHong Kong100%30 JuneHolding Company
Greenlife (New Zealand) Product
Limited
Hong Kong100%30 JuneNot trading
Comvita HK LimitedHong Kong100%30 JuneSelling and distribution
Comvita Holdings Pty LimitedAustralia100%30 JuneHolding Company
Comvita Australia Pty Limited Australia100%30 JuneManufacturing, selling &
distribution
Olive Leaf Australia Pty LimitedAustralia100% 30 JuneNot trading
Olive Products Australia Pty Limited Australia100%30 JuneProperty ownership
Comvita IP Pty LimitedAustralia100%30 JuneIP ownership
Comvita Health Pty LimitedAustralia100%30 JuneNot trading
Medihoney Pty LimitedAustralia100%30 JuneNot trading
Medihoney (Europe) LimitedUnited Kingdom100%30 JuneNot trading
Comvita Holdings UK LimitedUnited Kingdom100%30 JuneHolding Company
Comvita UK LimitedUnited Kingdom100%30 JuneSelling and distribution
New Zealand Natural Foods LimitedUnited Kingdom100%30 JuneNot trading
Comvita Europe BVNetherlands100%30 June Selling and distribution
29. SUBSEQUENT EVENTS
Dividends
On 24 August 2022, the Directors approved the payment of a fully imputed final dividend of $2,092,000
(3 cents per share) to be paid on 7 October 2022. As the dividend was declared after balance date it has not
been recognised as a liability in these financial statements.
30. SUPPLEMENTARY NON-GAAP INFORMATION - EBITDA
Earnings before interest, tax, depreciation, and amortisation (EBITDA) is a non-GAAP measure. We monitor
this as a key performance indicator and believe it assists investors in assessing the performance of the core
operations of our business
In thousands of New Zealand dollars
2022
30 June
2021
30 June
Profit before tax17,12513,401
Add back: net finance cost2,2451,995
EBIT19,37015,396
Add back: depreciation and amortisation10,71310,127
EBITDA30,08325,523
NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
COMVITA FINANCIAL STATEMENTS 2022
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4
COMVITA.CO.NZ
Independent Auditor’s
Report
To the shareholders of Comvita Limited
Report on the audit of the consolidated financial statements
Opinion
In our opinion, the consolidated financial statements of
Comvita Limited (the ’C ompany’) and its subsidiaries
(the 'Group') on pages 3 to 38:
— Present fairly in all material respects the Group’s
financial position as at 30 June 2022 and its financial
performance and cash flows for the year ended on
that date; and
— Comply with New Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
We have audited the accompanying consolidated
financial statements which comprise:
— The consolidated statement of financial position as
at 30 June 2022;
— The consolidated income statement, statements of
comprehensive income, changes in equity and cash
flows for the year then ended; and
— Notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’) . We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of Ethics for
Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the New Zealand
Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ International Code
of Ethics for Professional Accountants (including International Independence Standards) (‘IESBA Code’), and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the Auditor’s responsibilities for the audit of the consolidated
financial statements section of our report.
Our firm has also provided other services to the Group in relation to tax services. Subject to certain restrictions, partners
and employees of our firm may also deal with the Group on normal terms within the ordinary course of trading activities of
the business of the Group. These matters have not impaired our independence as auditor of the Group. The firm has no
other relationship with, or interest in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements in the current period. We summarise below those matters and our key audit procedures
to address those matters in order that the shareholders as a body may better understand the process by which we arrived
at our audit opinion. Our procedures were undertaken in the context of and solely for the purpose of our statutory audit
opinion on the consolidated financial statements as a whole and we do not express discrete opinions on separate elements
of the consolidated financial statements.
AUDITORS REPORT
COMVITA FINANCIAL STATEMENTS 2022
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O
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AUDITORS REPORT
Independent Auditor’s
Report
To the shareholders of Comvita Limited
Report on the audit of the consolidated financial statements
Opinion
In our opinion, the consolidated financial statements of
Comvita Limited (the ’Company’) and its subsidiaries
(the 'Group') on pages 3 to 38:
— Present fairly in all material respects the Group’s
financial position as at 30 June 2022 and its financial
performance and cash flows for the year ended on
that date; and
— Comply with New Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
We have audited the accompanying consolidated
financial statements which comprise:
— The consolidated statement of financial position as
at 30 June 2022;
— The consolidated income statement, statements of
comprehensive income, changes in equity and cash
flows for the year then ended; and
— Notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of Ethics for
Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the New Zealand
Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ International Code
of Ethics for Professional Accountants (including International Independence Standards) (‘IESBA Code’), and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the Auditor’s responsibilities for the audit of the consolidated
financial statements section of our report.
Our firm has also provided other services to the Group in relation to tax services. Subject to certain restrictions, partners
and employees of our firm may also deal with the Group on normal terms within the ordinary course of trading activities of
the business of the Group. These matters have not impaired our independence as auditor of the Group. The firm has no
other relationship with, or interest in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements in the current period. We summarise below those matters and our key audit procedures
to address those matters in order that the shareholders as a body may better understand the process by which we arrived
at our audit opinion. Our procedures were undertaken in the context of and solely for the purpose of our statutory audit
opinion on the consolidated financial statements as a whole and we do not express discrete opinions on separate elements
of the consolidated financial statements.
The key audit matter H ow the matter was addressed in our audit
Impairment of Goodwill
Refer to the Notes 3(j)(ii) and 12.
The Group has $26.8m of goodwill
relating to three cash generating units
(CGU’s):
— Greater China;
— Apiaries; and
— Other.
The process of performing an
impairment assessment is inherently
judgemental as it involves the use of
unobservable, forward looking
assumptions and data.
The Group utilises value in use models
to determine the recoverable amount of
each CGU, which are then compared to
the CGU's net assets. In relation to these
models, particular attention was
required of:
⎯ Projected earnings before interest
and tax (EBIT);
⎯ Post tax discount rates;
⎯ Manuka honey yields and grade;
and
⎯ Forecasted hive costs.
As disclosed in Note 12 of the financial
statements, the recoverable amounts of
each CGU have varying level of
sensitivity to the respective assumptions
applied by the Group.
Our audit procedures included the following, amongst others:
⎯ We assessed the Group’s determination of CGU's based on our
understanding of the nature of the Group, their operations and the
internal reporting of the business;
⎯ We assessed the value in use models (VIU) for each CGU considering the
methodology adopted in the discounted cash flow valuation models
against the requirements of the applicable financial reporting standards;
⎯ We considered the consistency of assumptions in individual VIU models
with the overall Group 5 year forecast to ensure appropriate and
consistent cash flows reported. Analysed the future cash flow forecasts
used and determined whether they are reasonable based on the
implementation of the strategic plan and historical achievements;
⎯ We utilised valuation specialists to challenge key judgements, which
included the post tax discount rates applied and terminal growth rates,
through comparison to market data and industry research;
⎯ We performed sensitivity analysis on key cash flow forecast assumptions,
Manuka honey yields and grade, post tax discount rates and terminal
growth, to understand the impact of reasonable possible changes in key
assumptions in various scenarios;
⎯ We performed testing to compare the calculated recoverable values to
the associated carrying amounts, and assessed whether any impairment
expense is to be recognised; and
⎯ We considered and reviewed appropriateness, sufficiency and clarity of
required disclosures included in the Group financial statements.
We did not identify any material misstatements in relation to the impairment
of goodwill or the related disclosure.
Other information
The Directors, on behalf of the Group, are responsible for the other information included in the entity’s Financial
Statements and Annual Report. Other information comprises the information included in the Group’s Financial Statements
and Annual Report, but does not include the consolidated financial statements and our Independent Auditor’s Report
thereon. Our opinion on the consolidated financial statements does not cover any other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
COMVITA FINANCIAL STATEMENTS 2022
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The key audit matter H ow the matter was addressed in our audit
Impairment of Goodwill
Refer to the Notes 3(j)(ii) and 12.
The Group has $26.8m of goodwill
relating to three cash generating units
(CGU’s):
— Greater China;
— Apiaries; and
— Other.
The process of performing an
impairment assessment is inherently
judgemental as it involves the use of
unobservable, forward looking
assumptions and data.
The Group utilises value in use models
to determine the recoverable amount of
each CGU, which are then compared to
the CGU's net assets. In relation to these
models, particular attention was
required of:
⎯ Projected earnings before interest
and tax (EBIT);
⎯ Post tax discount rates;
⎯ Manuka honey yields and grade;
and
⎯ Forecasted hive costs.
As disclosed in Note 12 of the financial
statements, the recoverable amounts of
each CGU have varying level of
sensitivity to the respective assumptions
applied by the Group.
Our audit procedures included the following, amongst others:
⎯ We assessed the Group’s determination of CGU's based on our
understanding of the nature of the Group, their operations and the
internal reporting of the business;
⎯ We assessed the value in use models (VIU) for each CGU considering the
methodology adopted in the discounted cash flow valuation models
against the requirements of the applicable financial reporting standards;
⎯ We considered the consistency of assumptions in individual VIU models
with the overall Group 5 year forecast to ensure appropriate and
consistent cash flows reported. Analysed the future cash flow forecasts
used and determined whether they are reasonable based on the
implementation of the strategic plan and historical achievements;
⎯ We utilised valuation specialists to challenge key judgements, which
included the post tax discount rates applied and terminal growth rates,
through comparison to market data and industry research;
⎯ We performed sensitivity analysis on key cash flow forecast assumptions,
Manuka honey yields and grade, post tax discount rates and terminal
growth, to understand the impact of reasonable possible changes in key
assumptions in various scenarios;
⎯ We performed testing to compare the calculated recoverable values to
the associated carrying amounts, and assessed whether any impairment
expense is to be recognised; and
⎯ We considered and reviewed appropriateness, sufficiency and clarity of
required disclosures included in the Group financial statements.
We did not identify any material misstatements in relation to the impairment
of goodwill or the related disclosure.
Other information
The Directors, on behalf of the Group, are responsible for the other information included in the entity’s Financial
Statements and Annual Report. Other information comprises the information included in the Group’s Financial Statements
and Annual Report, but does not include the consolidated financial statements and our Independent Auditor’s Report
thereon. Our opinion on the consolidated financial statements does not cover any other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been undertaken so
that we might state to the shareholders those matters we are required to state to them in the independent auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the shareholders as a body for our audit work, this independent auditor’s report, or any of the opinions
we have formed.
Responsibilities of the Directors for the consolidated financial
statements
The Directors, on behalf of the Company, are responsible for:
— The preparation and fair presentation of the consolidated financial statements in accordance with generally accepted
accounting practice in New Zealand (being New Zealand Equivalents to International Financial Reporting Standards)
and International Financial Reporting Standards;
— Implementing necessary internal control to enable the preparation of a consolidated set of financial statements that is
fairly presented and free from material misstatement, whether due to fraud or error; and
— Assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless they either intend to liquidate or to cease operations
or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objective is:
— To obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error; and
— To issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs
NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at the
External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor's report is Trevor Newland
For and on behalf of
KPMG
Tauranga
24 August 2022
AUDITORS REPORT
COMVITA FINANCIAL STATEMENTS 2022
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42
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been undertaken so
that we might state to the shareholders those matters we are required to state to them in the independent auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the shareholders as a body for our audit work, this independent auditor’s report, or any of the opinions
we have formed.
Responsibilities of the Directors for the consolidated financial
statements
The Directors, on behalf of the Company, are responsible for:
— The preparation and fair presentation of the consolidated financial statements in accordance with generally accepted
accounting practice in New Zealand (being New Zealand Equivalents to International Financial Reporting Standards)
and International Financial Reporting Standards;
— Implementing necessary internal control to enable the preparation of a consolidated set of financial statements that is
fairly presented and free from material misstatement, whether due to fraud or error; and
— Assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless they either intend to liquidate or to cease operations
or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objective is:
— To obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error; and
— To issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs
NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at the
External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor's report is Trevor Newland
For and on behalf of
KPMG
Tauranga
24 August 2022
AUDITORS REPORT
N
O
.
43
Principal activity
The principal activity of the Company is that of manufacturing and marketing quality natural
health products, apiary ownership and management.
Dividend
On 24 August 2022, the Directors approved the payment of a fully imputed final dividend of
$2,092,000 (3 cents per share) to be paid on 7 October 2022.
Directors’ remuneration for the year ended 30 June 2022
In accordance with the constitution, all directors will continue in office, until the 2022 Annual
Meeting, when two directors will retire by rotation.
In thousands of New Zealand dollars
Base
Fee
Committee
Fee
Total
B.D Hewlett
129-129
L.N.E Bunt
652994
S.J Kennedy
652994
B Major
65974
P Reid (resigned 1 October 2021)
16- 16
C Dayong (resigned 13 September 2021)
16- 16
Z Guangping
65- 65
Y Wu (appointed 13 September 2021)
49- 49
B Coates (appointed 1 October 2021)
49655
D Banfield (appointed 13 September 2021)
-- -
Total
51973592
The maximum total pool of annual Directors’ remuneration is $610,000, as approved by
Shareholders in 2016.
Statutory
INFORMATION
5
COMVITA.CO.NZ
COMVITA FINANCIAL STATEMENTS 2022
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Interests register
Directors have disclosed the following directorships held by them excluding family companies and companies
with no association to their appointment as director of the Company or any companies in the Group:
B MAJOR
L.N.E BUNT
Z GUANGPING*
B COATES
S.J KENNEDY
B.D HEWLETT
Y WU*
D BANFIELD
Director – Comvita Limited
Chairman – Gibb Holdings (Nelson) Ltd
Chairman – High Value Nutrition National
Science Challenge
Chairman – Go Global Avocado Primary
Growth Partnership
Chairman – Armer Group Advisory Board
Deputy Chairman – Hautupua General Partner Ltd
Deputy Chairman – Miro Trading General Partner Ltd
Managing Director and Shareholder – Sinotearoa Ltd
Director – BioVittoria Ltd
Director – BioVittoria Investments Ltd
Director – Dairy Holdings Limited
Committee Member – Oriens Capital Investment Committee
Director – Comvita Limited
Chairman – Heat Treatments Limited
Director – Comvita Limited
Director – Comvita Limited
Chairman - Toitu Tahua:
Centre for Sustainable Finance
Chairman - Fonterra Sustainability - Advisory Panel
Chairman - Real Estate Institute of New Zealand
Chairman - Koi Tu: Centre for Informed Futures /
University of Auckland
Director - Yealands Wine Group Ltd
Director - Northern Rescue Helicopter Trust
Director - American Chamber of Commerce
Director and Trustee - Mindful Money (Charity)
Advisory Board Member - Global from Day One Fund
Director – Comvita Limited
Director – Lifestream International Limited
Director – Lanaco Limited
Director – SJK Consulting Limited
Director – Calocurb Ltd
Director – New Zealand Rural Land Co
Director – Final Mile Holdings Limited
Chairman – Comvita Limited
Director – Quayside Holdings Limited
Director – Quayside Properties Limited
Director - Quayside Securities Limited
Member – University of Waikato Management School
Business Advisory Group
Member - University of Waikato Tauranga Campus
Charitable Trust Academic Panel
Chairman – Comvita Limited
Director - Genesis Care Pty Limited
Director - Oatly Group AB (OTLY.US)
Director - Blossom Key Holdings Ltd
Director - China Resources Verlinvest
Senior Care Services Ltd
Director - Nativus Company Ltd
Director - Shanghai Red Sun Enterprise
Management Co., Ltd
Director - Chongqing Hezhan Eldercare Industry
Development Co., Ltd
Director - Chengdu Buen Chunqiu Senior Care
Services Limited
Managing Director and CEO – Comvita Limited
plus various subsidiaries of Comvita Limited
* Mr Zhu Guangping and Ms Yawen Wu are not considered independent as they are associated with substantial product
holders. Zhu Guangping is associated with Li Wang, the largest shareholder in the Company with a shareholding greater
than 5%. Yawen Wu is associated with China Resources which also has a shareholding greater than 5%.
STATUTORY INFORMATION
COMVITA FINANCIAL STATEMENTS 2022
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DIRECTORS OF GROUP COMPANIES OTHER THAN SHOWN ABOVE
CompaniesDirectors
Apimed Medical Honey Limited**D Banfield*
Bee & Herbal New Zealand LimitedD Banfield *
Comvita Australia Pty LimitedD Banfield*M Tobin
Comvita China LimitedD Banfield*G ZhuA Chen*
Comvita Food (China) LimitedD Banfield*A Chen*G Zhu
Comvita Food (Hainan) Co. LimitedD Banfield*A Chen*T Brown*
Comvita Health Pty LimitedD Banfield*M Tobin
Comvita HK LimitedD Banfield*A Chen*
Comvita Holdings HK LimitedD Banfield*A Chen*
Comvita Holdings Pty LimitedD Banfield*M Tobin
Comvita Holdings UK LimitedD Banfield*
Comvita IP Pty LimitedD Banfield*M Tobin
Comvita Japan K. K.D Banfield*R Shida*
Comvita Korea Co LimitedD Banfield*J Park*
Comvita Landowner Share Scheme Trustee
LimitedD Banfield*
Comvita New Zealand LimitedD Banfield*A Barr*
Comvita Share Scheme Trustee LimitedS KennedyL Bunt
Comvita Taiwan LimitedD Banfield*
Comvita UK LimitedD Banfield*
Comvita USA, IncD Banfield*A Barr*
Green Life (New Zealand) Product LimitedD Banfield*A Chen*
Kyoto Forests of New Zealand LimitedD Banfield*
Medibee LimitedD Banfield*
Medihoney (Europe) LtdD Banfield*
Medihoney Pty LtdD Banfield*M Tobin
New Zealand Natural Foods LimitedD Banfield*
Olive Leaf Australia Pty LimitedD Banfield*M Tobin
Olive Products Australia Pty LimitedD Banfield*M Tobin
Comvita Europe B.VD Banfield*R Bosland*
* denotes an executive of a Group Company
**Apimed Medical Honey Limited amalgamated into Comvita Limited effective 30 June 2022
STATUTORY INFORMATION
COMVITA FINANCIAL STATEMENTS 2022
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DIRECTORS OF GROUP COMPANIES (CONTINUED)
Share Dealings of Directors
Director
Relevant InterestNumber of
Shares
Disposed
Value of
Shares
Disposed
Number of
Shares
Acquired
Value of
Shares
Acquired
S.J KennedyBeneficially owned(57)(196)--
B.D HewlettBeneficially owned--3,00010,200
B MajorBeneficially owned--7,85826,860
B CoatesBeneficially owned--20,00063,000
D BanfieldBeneficially owned--28,162-*
*D Banfield received two allotments of shares during the year at nil value as part of the Performance Share Rights
Scheme.
Directors Shareholding
Directors, or entities associated with directors, held the following ordinary shares in Comvita Limited
at 30 June 2022:
DirectorRelevant Interest30 June 202230 June 2021
S.J KennedyBeneficially owned22,83522,892
L.N.E BuntBeneficially owned70,00070,000
B MajorBeneficially owned35,81027,952
B.D HewlettBeneficially owned400,926397,926
B CoatesBeneficially owned20,000-
D Banfield*Beneficially owned533,392505,230
Total1,082,9631,024,000
* D Banfield also had 94,382 of outstanding Performance Share Rights at 30 June 2022.
STATUTORY INFORMATION
COMVITA FINANCIAL STATEMENTS 2022
N
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Directors Indemnity and Insurance
The Company has insured all its Directors and the Directors of its wholly owned subsidiaries against
liabilities to other parties (except the Company or a related party of the Company) that may arise
from their positions as Directors. The insurance does not cover liabilities arising from criminal actions.
The Company has not been required to indemnify its Directors for any liabilities during the year.
Employees’ remuneration
During the year ended 30 June 2022 the following numbers of employees received remuneration of at
least $100,000.
Number of employees
$100,000 to $110,0007
$110,000 to $120,00010
$120,000 to $130,0006
$130,000 to $140,0005
$140,000 to $150,0005
$150,000 to $160,0006
$160,000 to $170,0005
$170,000 to $180,0003
$190,000 to $200,0003
$200,000 to $210,0004
$210,000 to $220,0002
$240,000 to $250,0002
$250,000 to $260,0002
$260,000 to $270,0001
$280,000 to $290,0001
$340,000 to $350,0002
$370,000 to $380,0001
$390,000 to $400,0001
$420,000 to $430,0001
$460,000 to $470,0001
$500,000 to $510,0001
$730,000 to $740,0001
Note: these bands are New Zealand dollar equivalents and reflect the impact of fluctuations in the foreign exchange
rates for remuneration of overseas based employees. The figures include bonus provisions made during the year which
may have not been paid at year end. It does not include any remuneration or benefit relating to share schemes.
Donations
During the year the Group made cash donations of $279,000 (2021: $5,000). This is in line with our
commitment to donate 1% of our EBITDA each year as set out in our Harmony Plan. The Group also made
donations of products to charitable organisations.
DIRECTORS OF GROUP COMPANIES (CONTINUED)
STATUTORY INFORMATION
COMVITA FINANCIAL STATEMENTS 2022
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SHAREHOLDER ANALYSIS
Analysis of shareholder by size as at 1 August 2022
Category
No of shareholdersShares heldPercentage of
shareholders
Percentage of shares
Up to 1,000 shares1,161592,84037.38%0.85%
1,001 – 5,000 shares1,2133,071,22639.05%4.40%
5,001 – 10,000 shares3442,554,60911.08%3.66%
10,001 – 100,000 shares3407,994,40110.95%11.46%
100,001 shares or more4855,518,3851.54%79.63%
Total3,106*69,731,461100%100%
*This number does not include a number of shareholders within Custodial and Nominee companies
Top 20 shareholders as at 1 August 2022
ShareholderShares heldPercentage of shares
Li Wang 8,552,736 12.27%
Custodial Services Limited4,792,299 6.87%
National Nominees New Zealand Limited4,582,271 6.57%
China Resources Enterprise Limited 4,582,000 6.57%
Kauri NZ Investments Limited 3,558,077 5.10%
Accident Compensation Corporation 2,368,098 3.40%
Alan John Bougen & Lynda Ann Bougen & Graeme William Elvin2,297,550 3.29%
Junxian Li 1,880,304 2.70%
Forsyth Barr Custodians Limited 1,733,878 2.49%
Pt Booster Investments Nominees Limited1,561,1952.24%
Bnp Paribas Nominees NZ Limited Bpss40 1,525,034 2.19%
Li Sun 1,410,000 2.02%
Robert Bertram Tait & Jane Gibbons Tait & Ian James Craig 1,169,553 1.68%
HSBC Nominees (New Zealand) Limited1,083,2641.55%
Maori Investments Limited 1,000,000 1.43%
New Zealand Permanent Trustees Limited1,000,0001.43%
JBWERE (Nz) Nominees Limited 977,986 1.40%
New Zealand Depository Nominee813,898 1.17%
Citibank Nominees (Nz) Ltd773,862 1.11%
Kevin Glen Douglas & Michelle Mckenney Douglas 753,655 1.08%
Masfen Securities Limited 734,010
1.05%
Other22,581,791 32.38%
Total Ordinary Shares*69,731,461100.00%
* does not include 362,500 partly paid redeemable share entitlements as detailed in note 26 to the annual accounts
Substantial security holders as at 1 August 2022
ShareholderShares heldPercentage of shares
Li Wang
8,552,73612.27%
China Resources Ng Fung Limited
4,582,0006.57%
Milford Asset Management Limited
4,579,0216.57%
Kauri NZ Investments Limited
3,558,0775.10%
STATUTORY INFORMATION
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Comvita Board Of Directors
Lucas (Luke) Nicholas Elias Bunt
Sarah Jane Kennedy
Bridget Coates
Brett Donald Hewlett
Robert Malcolm Major
Guangping Zhu
Yawen Wu
David Banfield
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
Westpac Banking Corporation
Level 8
16 Takutai Square
PO Box 934
Auckland 1140
Sharp Tudhope
Level 4
152 Devonport Road
Private Bag TG12021
Tauranga 3110
Simpson Grierson
Level 27
88 Shortland Street
Private Bag 92518
Auckland 1141
KPMG Tauranga
Level 2
247 Cameron Road
PO Box 110
Tauranga 3140
Link Market Services Limited
Level 30, PwC Tower
15 Customs Street West
Auckland 1010
Comvita USA Inc.
506 Chapala Street
Santa Barbara, CA 93101 | USA
Phone +1 855 449 2201
usacustomerservice@comvita.com
Comvita UK Limited
2nd Floor, 47a High Street
Maidenhead, SL61JT
United Kingdom
Phone +44 1628 779 460
info@comvita.co.uk
Comvita Hong Kong Limited
Room 1320 –
1322 Leighton Centre
77 Leighton Road
Causeway Bay | Hong Kong
Phone +852 2562 2335
cs@comvita.com.hk
Comvita Japan K.K.
Sangenjaya Horisho Bld 4F
1-12-39 Taishido, Setagaya-Ku
Tokyo 154-0004 | Japan
Phone +81 3 6805 4780
info@comvita-jpn.com
Comvita Korea Co Limited
18F Gwanghwamun Building,
149 Sejong-daero, Jongno-gu,
Seoul(03186) | Korea
Phone +82 2 2631 0041
service.korea@comvita.com
Comvita Australia Pty Limited
167 Eagle Street
Brisbane
Queensland 4000 | Australia
Freephone 1800 466 392
Customer Service 1300 653 436
info@comvita.com.au
Comvita Food (China) Limited
2501 - 2502, Block A
Xinhao E Du, No 7018
Caitian Road, Futian District
Shenzhen | China
Phone +86 755 8366 1958
comvita@comvita.com.cn
Comvita Europe B.V.
Bakincklaan 7 1183 AT
Amstelveen
Netherlands
Phone +31682065359
info.europe@comvita.com
AUSTRALIA
CHINA
HONG KONG SAR
JAPAN
NORTH AMERICA
UNITED KINGDOM
KOREA
EUROPE
BANKERS
DIRECTORSAUDITORS
SOLICITORS
REGISTERED
OFFICE
SHARE
REGISTRY
6
COMVITA.CO.NZ
Directory
COMVITA FINANCIAL STATEMENTS 2022
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BUILDING A
BETTER BUSINESS
---
I N V E S T O RP R E S E N TAT I O N
F U L LY EA RR E S U LTF Y 22
PRESENTEDBY:
DavidBanfield,CEO
NigelGreenwood,CFO
25AUGUST2022
Notice
I M P O R T A N T
This presentation is given on behalf
of Comvita Limited. Information in
this presentation:
•Should be read in conjunction with, and
is subject to, Comvita’s Annual Reports, Interim
Reports and market releases
on NZX
•Is from the audited Annual results for
the year ended 30 June 2022
•Includes non-GAAP financial measures such as
adjusted EBITDA and net contribution. These
measures do not have a standardised meaning
prescribed by GAAP and therefore may not be
comparable to similar financial information
presented by other entities. They should not be
used in substitution for, or isolation of, Comvita’s
audited financial statements. We monitor these
non-GAAP measures
as key performance indicators, and we believe it
assists investors in assessing
the performance of the core operations
of our business
•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
•Includes statements 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 investment advice
•Is current at the date 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.
2
3
Number one
Gaining market share in key markets and
Extending our global leadership
Five
Consecutive period delivering
double digit earnings growth in
line or ahead of Guidance
Revenue $209M +9%
Record revenue +$17M
vs PCP or +9%
Gross profit (GP) 60.3%
+640 bps
60% GP in line with our 2025
plan and +640 bps vs PCP
Fully imputed final dividend of
3.0 cps
Total dividend for FY22 5.5
+37% vs PCP
$25.5M net debt
+ve operating cashflow
Net debt +$21M vs PCP
due to investment in inventory
Positive cashflow
EBITDA $30.1M
and NPAT $12.8M
EBITDA for FY22 + 18% vs PCP
NPAT + 35% vs PCP
EPS +34% vs PCP
$28.1M brand
investment
Brand Investment increased by $3.8M or
16% to 13.4% of sales
FY22 strong performance
S E C T I O N
Our 2025 focused strategic
plan on track
4
1
Purpose
5
O U R
Working in harmony with bees
and nature in New Zealand
to heal and protect the world.
”
“
6
T O 2 0 2 5
F O C U S S E D
Clarity of focus and progress
7
Targeting
$50M
EBITDA 2025
HEADLINES
•Reported EBITDA $30.1M +18% vs PCP, at top end of
guidance
•Second highest earnings of all time in the history of
Comvita
•$12.8M NPAT +35% vs PCP
•Record revenue $209M +9% +$17M vs PCP
•Record gross profit $126M +22% vs PCP, on track with
2025 plan
•Double digit bottom-line growth:
•North America
•China
•Mānuka honey
•Ecommerce
•$28.1M investment in our brand enabling us to tell our
founding story toconsumers around the world
•Gaining marketshareinkey markets
Plan
8
D E L I V E R I N G O N O U R
$12.8M
REPORTED NPAT
+35% vs PCP
$30.1M
REPORTED EBITDA+$4.6M
+18% vs PCP
18.2EPS
EPS +34% vs PCP
$209M
RECORD REVENUE
+9.0%
60.3%
GROSS PROFIT
+640 BPS
$28.1M
MARKETING
INVESTMENT +16%
( N U M B E R S )
HEADLINES
•Strong margin improvement +640 bps vs PCP to 60.3%
•13.4% marketing investment +80 bps vs PCP
•14.4% EDITDA +110 bps vs PCP
•16% adjusted EBITDA when removing transformation and
one off costs ($3.4M)
•Fully imputed dividend 3.0 cps, FY22 full year dividend
5.5 cps +37%
•40% reduction in TRIFR
•First carbon footprint produced (Scope 1,2,3) showing net
carbon footprint 26.6KT
•Targeting carbon neutral 2025 and net positive 2030
•1% of FY21 EBITDA ($280K) for social and environmental
impact
•Global Comvita team as shareholders and record
investment in projects for social and environmental
impact in line with our purpose
9
D E L I V E R I N G O N O U R
( R A T I O S )
60.3%
GROSS PROFIT
+640 BPS
MARKETING TO
SALES RATIO
EBITDA % OF SALES
16% ADJUSTED EBITDA*
40%
REDUCTION IN TOTAL RECORDABLE
INJURY FREQUENCY RATE (TRIFR)
13.4%
14.4%
26.6K
NET CARBON FOOTPRINT IN tCO
2
e
(S1,2,3)*
Plan
FULLY IMPUTED
DIVIDEND DECLARED
3.0CPS
•S1 = Scope 1 direct GHGH emissions; S2 = Scope 2 Indirect emissions
from imported energy; S3 = Scope 3 Indirect emissions from
transportation, products and other
S E C T I O N
Delivering
environmental and
social impact
10
2
Native Forests & Biodiversity
•1.13 million native trees planted, with 1,017
hectares rewilded*
•Biodiversity studies underway with
University of Auckland funded by Callaghan
Innovation
•Protection in place for three at-risk or
endangered species
•8,730 hectares under predator
management, including 28 kilometers of
kiwi protection traplines
•Herbicide used replaced with sheep grazing,
resulting in 60% reduction in application
11
Climate Action
•Global GHG inventory completed
•Carbon positive S1 & S2 in NZ, science-
aligned targets set for ongoing reduction
•90.8T of waste diverted from landfill
•2T of shrink wrap removed from supply chain
•72T metal drums recycled
•Material Circularity Index developed
•11% improvement in packaging recyclability
to 89%
1
Community Impact
•All employees will have the opportunity to
become shareholders (or equivalent)
•More than 1% of FY21 EBITDA donated to worthy
causes and initiatives
•First Saving The Wild harvest in Kenya, with
proceeds to go to Masai people
•$25k to regional NZ community causes
•3,500 care packs donated to local whānau in
need in Bay of Plenty
•Product worth $10k donated Red Cross in Japan.
Bee Welfare & Advocacy
•More than 12 million bees rescued and
rehomed through muliple campaigns globally
•Dedicated Bee welfare position, with focus on
education and awareness
•$123,000 donated to be rescue operations in
FY22
•1,100 was traps set in the Hawkes Bay region,
covering 1,709 hectares
•Organic varroa management research
underway
2
4
Nature
I N O U R
Comvita Harmony Plan impact is aligned to material
ESG topics from FY22 materiality assessment
3
*Restoring native Mānuka Forests
Comvita
12
E S G A T
Key Focus Areas:
●GHG emissions
●Air and water pollution
●Biodiversity
●Deforestation
●Resource depletion
(pollen and nectar resources)
●Use of chemicals and pesticides
●Water efficiency
●Energy efficiency
●Sustainable packaging and circularity
●Waste management
●Climate change preparedness
Key Focus Areas:
●Product quality and food safety
●Customer satisfaction
●Ethical procurement
●Data protection and privacy
●Human rights
●Child labour and modern slavery
●Health and safety
●Labour standards
(including in our Supply Chain)
●Pay equity (gender and ethnicity)
●Employee diversity and equitable
opportunity
●Employee engagement
●Community investment (1% of EBITDA)
●Community relations,
including Māori Engagement
Key Focus Areas:
●Board composition
(diversity and independence)
●Compliance with regulations
●Anti-bribery and corruption
●Accounting and audit quality
●Global tax strategy
●Business ethics
●Lobbying
●Political contributions
●Speak-up policies and frameworks
●Integrated reporting
OUR
HARMONY PLAN
STRENGTHENING OUR
GLOBAL HIVE
ENVIRONMENTAL
GOVERNANCE
SOCIAL
* ESG definition aligned
with global reporting frameworks
and Comvita Materiality Review
Whānau
13
G L O B A L
A V E R A G E E M P L O Y E E
Y E A R S O F S E R V I C E
G L O B A L L Y
F U L L T I M E E Q U I V A L E N T
R O L E S I N O U R G L O B A L
WHĀNAU
V O C A T I O N A L I N V E S T M E N T
TARGETED TO WOMEN, MĀORI
A N D P A S I F I K A
F Y 2 2 T A R G E T 7 5 %
36%
O F TH E C O M V I T A
B O A R D A R E W O M E N
38%
100%
552
EQ U A L P A Y F O R E Q U A L W O R K
G L O B A L L Y
F Y 2 2 T A R G E T 1 0 0 %
36%
O F G L O B A L E X E C U T I V E R E P O R T I N G
T O C E O A R E W O M E N
F Y 2 2 T A R G E T 4 0 %
100%
L I V I N G W A G E M E T F O R N Z-
B A S E D E M P L O Y E E S
F Y 2 2 T A R G E T 1 0 0 %
68%
5+
75%
O F C O M V I T A E X E C U T I V E S
H A V E I N T E R N A T I O N A L
E X P E R I E N C E
O F O U R G L O B A L T E A M
I S F E M A L E
14
-40% VS. FY21 (5.3)
TRIFR
1.5
3.2
Safety and
wellbeing
P E R F O R M A N C E V S P C P
I N D I V I D UA L W E L L B E I N G C H E C K S
C H I N A & N Z
320
R E P O RTA B L E I N J U R I E S
0.9
LTIFR
•TRIFR = Total Recordable Injuries, per 200,000 hours worked globally (some assumptions apply)
•LTIFR = Lost Time Injuries, per 200,000 hours worked globally (some assumptions apply)
•MVIFR = Motor Vehicles incidents per 200,000 km’s travelled . Correction to MVIFR rate reported for FY21.
1 J U L Y 2 0 2 1 –3 0 J U N E 2 0 2 2
+4%
FY22 TARGET : +10%
N E A R M I S S
R E P O RT I N G
MVIF R
FY22 NEW
-41%
FY22 TARGET : -10%
-37% VS. FY21 (2.4)
-64% VS. FY21 (5.3)
Carbon
15
P R O U D L Y H E A D I N G T O W A R D S O U R
P O S I T I V E G O A L 2 0 3 0
NZ Operations
(S1, S2) Carbon Emissions
961 tCO
2
e
(FY21: 1,004 tCO
2
e)
Global Footprint
(S1, S2, S3) Carbon Position
32,591 tCO
2
e
Global Net Position
(S1, S2, S3)
26,620 tCO
2
e
NZ Net Position
(S1, S2) Net Positive
-5,010 tCO
2
e
(FY21: -2,817 tCO
2
e)
Comvita Mānuka Forests
Carbon Removals*
5,971 tCO
2
(FY21: 3,821 tCO
2
)
•S1 = Scope 1 direct GHGH emissions; S2 = Scope 2 Indirect emissions from imported energy; S3 = Scope 3 Indirect emissions from transportation, products and other
•Mānuka Forests sequestered 6,026 tCO
2
in total. Removal figure includes biofuel combustion
•Removals have been quantified for planted Mānuka forests under operational control and for wild Mānuka on Comvita-owned properties, using the NZ MPI Carbon Look-up Tables for Forestry in the Emissions Trading Scheme
-4%
Baseline
(new)
-78%
Comvita Mānuka Forests
Carbon Removals*
5,971 tCO
2
(FY21: 3,821 tCO
2
)
+56%+56%
Baseline
(new)
16
D IR EC T G H G EMISSIONS NZ OPER AT IONS
(S1, S2)
961CO
2
e
Science based
reductions
P E R F O R M A N C E V S P C P
N Z PA C K A G I N G P U RC H A S E D
I S R E C YC L A B L E
89%
N AT I V E T R E E S
P L A N T E D I N N Z
-2.0T
1 J U L Y 2 0 2 1 –3 0 J U N E 2 0 2 2
90.8T
N Z WA ST E D I V E RT E D F RO M
L A N D F I L L
S H R I N K W R A P R E M OV E D F RO M
S U P P LY C H A I N
+6,000% vs FY21 (+0.4T)
1.13M
FY21: 1.22M+245% VS FY21 (26.3T)
-4% VS FY21
NEW BASELINE
C A R B ON NET POSIT IVENZ OPER AT IONS
(S1, S2)
-5,010CO
2
e
-62% VS FY21
Science and IP
17
F U R T H E R I N V E S T M E N T I N
C O M V I T A L A B O R A T O R I E S E s t . 1 9 7 4
•$5.7M R&D spend qualifying for RDTI: Consumer Health $1.2M, Supply and Process Improvement $4.5M
•5 patents granted (3 in the same patent family) and 12 patents filed (10 in the same patent family)
12
$1.3M
+59%
vs. PCP
Industry Leading in
Clinical Trials
Mānuka honey for Digestive Health
(HVN National Science Challenge grant awarded: $875K)
Greater Investment in
Consumer Health
Skin & Gut Health
Mānuka for Atopic Dermatitis & Digestive Health
Propolis for Immunity
$1.2M
World-Leading
Quality
23 Independent Audits and Certifications
Incl. BRC “AA”, IANZ, MPI Recognised Lab, MPI Transitional Facility
#1
Industry Leading
Lab Testing Standards
392,469 Lab Results in FY22
(FY21: 246,804)
More Scientific Patents
Granted
5 Patents Granted in FY22
To date 12 Patents Filed & 5 Granted
Leading Scientific &
Clinical Expertise
Backed by Expert Global Advisory Board
AU, NZ, USA, UK, CHN
8
Members
18
Value
H O W C O M V I T A C R E A T E SF O R A L L S T A K E H O L D E R S
S E C T I O N
Full year results FY22
19
3
Financial
20
K E Y R E S U L T S
I N C O M E S T A T E M E N T
*EBITDA, sales variable and transformation are non-GAAP measures. We monitor these as key performance indicators
and believe they assist investors in assessing the performance of the core operations of our business.
**One off costs and transformation investment of $3.4m were added back.
For the Year Ended
NZD 000s
30 June
2022
30 June
2021Variance $Variance %
Revenue208,909191,73417,1759.0%
Gross Profit126,000103,42422,57621.8%
Gross Profit %60.3%53.9%6.4%6.4%
Marketing28,06224,216(3,846)(15.9%)
Sales Variable*22,03118,589(3,442)(18.5%)
Transformation*2,3781,172(1,206)(103.0%)
Other Expenses55,32350,484(4,839)(9.6%)
Operating Expenses107,79494,461(13,333)(14.1%)
Operating Profit20,14912,1837,96665.4%
EBITDA*30,08325,5234,56017.9%
Net Profit after Tax12,7849,4793,30534.9%
•Record revenue of $209M +9% vs PCP
•Record gross profit 60.3% +640 bps +21.8% vs PCP
•Record brand investment $28.1M with marketing investment,
13.4% of revenue from 12.6% last year
•Transformation investment +$1.2M +103%
•Other expenses up 9.6% ($4.8M) however, circa 35% of this uplift is
considered non recurring
•Operating profit $20.1M +65% vs PCP
•EBITDA $30.1m +17.9% at the top end of guidance
•14.4% of sales vs 13.3% last year +110 bps
•16% normalised EBITDA**
•NPAT $12.8M +34.9% vs PCP
Profit
G R O S S
+$22.6M
Gross profit improved $22.6M from focus growth markets, Mānuka honey, digital channel and
productivity gains
•Focus growth markets: Strong performance in China and North America
•Strong growth in monofloral Mānuka honey
•Digital channel share growth +15% to 39% of total sales from 34% last year at accretive margins
−Every 10% increase in digital share improves group GP by 100 bps
•Continuing productivity gains in our manufacturing process leading to lower cost of sales
•Our apiary operation had a positive contribution of $2.9M vs a breakeven outcome PCP
GP BRIDGE FY22 V FY21
21
Financial
22
K E Y R E S U L T S
B A L A N C E S H E E T
•Net debt increased by $21.0M
−Investment in JV of $5.1M
−Capital expenditure of $10.3M
−Purchase of treasury stock of $3.0M
−Dividend payments of $4.7M
•Positive operating cashflows $2.8M
−Second half positive operating cash flow of $7.7M
•Significant investment in inventory holdings in both finished
goods and raw material holdings to offset global supply
disruption and forecasted FY23 growth
•Basic EPS increase +34% to 18.2 cps
As at
NZD 000s
30 June
2022
Audited
30 June
2021
AuditedVariance $
Net Debt25,5444,583 20,961
Operating Cashflow2,83024,825(21,995)
Inventory132,157101,00831,149
EPS18.2 cps13.6 cps4.6 cps
Weighted average shares on issue70,08769,640447
Inventory
23
P R O F I L E
•Inventory increased by $31.1M vs 30 June 2021
•Raw materials increased by $19.8M to enable us to
meet forecasted market demand in FY23
•Increased finished goods to mitigate against ongoing
supply chain disruptions –forecasted to continue
through FY23
•Elevated inventory levels to remain to buffer against
supply chain disruption
As at
NZD 000s
30 June
2022
Audited
30 June
2021
Audited
Variance $
Raw materials76,61156,82819,783
Work in progress5,5114,983528
Finished goods50,03539,19710,838
Total Inventory132,157101,00831,149
Capital
24
•Continued investment in our Mānuka forest strategy
−The substantive benefits of our investments in
forests are expected to deliver from FY27 onwards
•Further investment into manufacturing process
improvements to improve productivity and increase
capacity
•Investment in digital channel (D2C) to drive revenue
growth and other IT and brand investments
For the year ended
NZD 000s
30 June
2022
30 June
2021
Mānuka forest development2,0693,849
Manufacturing process improvements1,7542,306
Digital transformation & Wellness Lab3,7102,238
Other2,7702,788
Total PPE additions10,30311,181
E X P E N D I T U R E
Dividend
25
F U L L Y I M P U T E D F I N A L
•Fully imputed final dividend of 3.0 cps
−Record date of 30 September 2022 and payment date of 7 October 2022
•5.5 cps dividends FY22 compared to 4.0 cps last year
•An overall increase of 37%
S E C T I O N
Honey harvest &
forests
26
5
Honey
27
APIARY OPERATIONS PERFORMANCE
▪Comvita’s new harvest model has proven successful again in FY22for the third
consecutive year
▪The total Mānuka harvest was 499K tonnes
▪Yield +41% vs PCP
▪Quality of yield +8% vs PCP
▪Harvest contribution to group profits $2.9M included within cost of sales
H A R V E S T 2 0 2 2
Forests
28
CONTINUED INVESTMENT IN FOREST STRATEGY
•Longer term Mānuka forest hypothesis, targeting:
−40% improvement in yields
−60% improvement in quality of yields
−20% reduction in costs
•Now have circa 7,500 hectares of forests
•NZ’s largest private native forest owner/manager
•Targeting to increase to circa 20,000 hectare over next 7 years
•Ownership of a minimum of 50% of carbon credits on leased land, with 100% on
owned land
•Maturity profile: no harvest years 1 to 3, 25% in year 4, 50% year 5 and 100% year 6
•Forecasting material benefit to COGs in the year 2027 onwards
2022
S E C T I O N
Market segments:
Growing share in focus markets
29
6
Headlines
30
M A R K E T
MARKET HEADLINES
•Record Revenue and Margin
▪Revenue $209M +9%
▪Gross Profit 60.3% +640 bps
•All markets excluding Japan in growth
•Greater China +4% revenue, net contribution $3.1M +15%
•Mainland China sales +9%, net contribution $4.0M +26%
▪Strong digital sales (circa 60% of total)
▪Retail sales -46% March to June due to Covid disruptions
▪Increased market share +2 ppts (greater than 2-10 combined)
•North America revenue +29%, net contribution $3.7M +78%
•Return to top and bottom-line growth in ANZ
•Profitable growth in EMEA though subscale
•Top and bottom-line growth in Rest of Asia
Revenue
31
P E R F O R M A N C E V S P C P
R E P O R T E D C U R R E N C Y
G R E A T E R C H I N A
$96.9M
2021 : $93.1M
+4%
N O R T H A M E R I C A
$31.8M
2021 : $24.7M
+29%
R E S T O F A S I A
$27.3M
2021 : $25.3M
+8%
A U S T R A L I A + N Z
$34.7M
2021 : $32.4M
+7%
E M E A
$5.1M
2021 : $5.1M
0%
$79.4M
M A I N L A N D C H I N A
2021 : $73.2M
+9%
Net contribution
32
P E R F O R M A N C E V S P C P
R E P O R T E D C U R R E N C Y
Net Contribution is a non-GAAP measure. We monitor this as a key performance
indicator and believe it assists investors in assessing the performance of the core
operations of our business. Reported figures using actual translation FX rates in each
period
G R E A T E R C H I N A
$23.0M
2021 : $19.9M
+15%
N O R T H A M E R I C A
$8.4M
2021 : $4.7M
+78%
R E S T O F A S I A
$6.6M
2021 : $6.4M
+3%
A U S T R A L I A + N Z
$11.2M
2021 : $10.2M
+10%
E M E A
$0.1M
2021 : $0.0M
+137%
$19.3M
M A I N L A N D C H I N A
2021 : $15.3M
+26%
Growth markets
F O C U S
C H I N A &
N O R T H A M E R I C A
STRUCTURED LONG-TERM INVESTMENT TO GROW TAM AND MARKET SHARE
CURRENT BUSINESS MODEL:
BALANCED DISTRIBUTION MODEL
FOCUS
33
34
Net Contribution is a non-GAAP measure. We monitor this as a key performance indicator and believe it assists
investors in assessing the performance of the core operations of our business. Reported figures using actual
translation FX rates in each period.
GREATER CHINA
ON A REPORTED CURRENCY BASIS –FOR YEAR ENDED
•Revenue +4% despite material Covid headwinds across the region
−Mainland China +9% revenue growth
−Material CBEC disruption
•Increased market share
•$860k investment in brand to 13.9%
•Net contribution +15% and 300 bps
−Good increase in net contribution Hong Kong SAR
NZD 000s
This Year
Jun-22
Last Year
Jun-21
Vs.
Last Year
Vs.
Last Year %
Sales
96,92493,0763,8484%
Net Contribution
22,95819,9083,05015%
Net Contribution %
24%21%3%
35
MAINLAND CHINA
ON A REPORTED CURRENCY BASIS –FOR YEAR ENDED
•Continued strong performance with revenue +9%
−Strong digital sales +19%
−Retail sales -46% March to June due to Covid disruptions
•Marketing investment +$1.0M to 15.8% of sales
−NPD driving brand visibility and revenue, 217M consumer reach within 48 hours
•Net contribution $19.3M +26% and 300 bps
NZD 000s
This Year
Jun-22
Last Year
Jun-21
Vs.
Last Year
Vs.
Last Year %
Sales
79,40773,1516,2569%
Net Contribution
19,32015,2824,03826%
Net Contribution %
24%21%3%
Net Contribution is a non-GAAP measure. We monitor this as a key performance indicator and believe it assists
investors in assessing the performance of the core operations of our business. Reported figures using actual
translation FX rates in each period.
36
NORTH AMERICA
ON A REPORTED CURRENCY BASIS –FOR YEAR ENDED
•Revenue +29% in the worlds biggest Mānuka honey market
•Good growth across all channels, growing market share
•Ecommerce +12%, retail +47%
•Net contribution +78% and 700 bps
NZD 000s
This Year
Jun-22
Last Year
Jun-21
Vs.
Last Year
Vs.
Last Year %
Sales
31,79324,7357,05829%
Net Contribution
8,4144,7333,68178%
Net Contribution %
26%19%7%
Net Contribution is a non-GAAP measure. We monitor this as a key performance indicator and believe it assists
investors in assessing the performance of the core operations of our business. Reported figures using actual
translation FX rates in each period.
37
REST OF ASIA
ON A REPORTED CURRENCY BASIS –FOR YEAR ENDED
•Revenue +8% to $27.3M
•Strong revenue growth in SEA and Korea offset by challenges in Japan
•Strong leadership in Korea delivering double digit top and bottom-line growth
•Continued investment in team and brand in SEA for long term growth
•Net contribution +3% to $6.6M (Japan -50%)
NZD 000s
This Year
Jun-22
Last Year
Jun-21
Vs.
Last Year
Vs.
Last Year %
Sales
27,33725,3461,9918%
Net Contribution
6,5856,3672183%
Net Contribution %
24%25%-1%
Net Contribution is a non-GAAP measure. We monitor this as a key performance indicator and believe it assists
investors in assessing the performance of the core operations of our business. Reported figures using actual
translation FX rates in each period.
38
AUSTRALIA & NEW ZEALAND
ON A REPORTED CURRENCY BASIS –FOR YEAR ENDED
•Revenue +7% NZ, AU and Asian health
•$0.7M increased investment in brand to 8.2%
•Net contribution +10% and 100 bps
NZD 000s
This Year
Jun-22
Last Year
Jun-21
Vs.
Last Year
Vs.
Last Year %
Sales
34,69632,4442,2527%
Net Contribution
11,21110,21899310%
Net Contribution %
32%31%1%
Net Contribution is a non-GAAP measure. We monitor this as a key performance indicator and believe it assists
investors in assessing the performance of the core operations of our business. Reported figures using actual
translation FX rates in each period.
39
EUROPE, MIDDLE EAST & AFRICA (EMEA)
ON A REPORTED CURRENCY BASIS –FOR YEAR ENDED
•Remains sub scale
•Revenue +1%, strong second half +34%
•Performance without Amazon for whole year (now resolved)
•Excluding Amazon all channels grew
•Self funding profitable growth despite investment in team and European entity
NZD 000s
This Year
Jun-22
Last Year
Jun-21
Vs.
Last Year
Vs.
Last Year %
Sales
5,1245,060641%
Net Contribution
833548137%
Net Contribution %
2%1%1%
Net Contribution is a non-GAAP measure. We monitor this as a key performance indicator and believe it assists
investors in assessing the performance of the core operations of our business. Reported figures using actual
translation FX rates in each period.
S E C T I O N
FY23 guidance
40
7
Guidance
41
F Y 2 3
•Forecasting double digit earnings growth for the year with strong weighting to H2
•Assuming sales in China normalising in Q2
•Profitable top and bottom-line growth in focus growth markets, channels and categories
•Ecommerce share greater than 40%
•Transformation Investment $5.5M
•Guidance range to be issued in Q2
Targeting $50M EBITDA 2025
42
Summary
Summary
•Record revenue of $209M +9.0%
•Record margin of 60.3% +640 bps
•Second best earnings of all time (EBITDA $30.1M) +18%
•NPAT $12.8M +34.5%
•34% EPS growth
•Positive operating cashflow
•FY22 total dividends of 5.5 cps
•Strong performance across all focus areas
Exciting future
•On track to deliver our 2025 plan of $50M EBITDA
•TAM globally forecast to grow by over US$6B (+67%) by 2031
•Mānuka honey household penetration forecast to double
•Average lifetime value +335%
S E C T I O N
Q & A
8
T H A N KYOUC O M V I TA . C O M
---
Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019
Results for announcement to the market
Name of issuer Comvita Limited
Reporting Period 12 months to 30 June 2022
Previous Reporting Period 12 months to 30 June 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$208,909 9%
Total Revenue $208,909 9%
Net profit/(loss) from
continuing operations
$12,784 35%
Total net profit/(loss) $12,784 35%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Board of Directors propose to pay a final dividend of 3 cents
per share.
Imputed amount per Quoted
Equity Security
3 cents per share
Record Date 30 September 2022
Dividend Payment Date 7 October 2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.63 $2.54
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to profit announcement and attachments for
commentary.
Authority for this announcement
Name of person
authorised
to make this announcement
David Banfield, CEO
Contact person for this
announcement
David Banfield, CEO
Contact phone number +64 21 041 5630
Contact email address david.banfield@comvita.com
Date of release through MAP
25 August 2022
Audited financial statements and the investor presentation accompany this announcement.
---
GREENHOUSE GAS INVENTORY REPORT
FOR THE YEAR ENDED 30 JUNE 2022 — COMVITA LIMITED
BLOSSOMING
COMVITA.CO.NZ
2
SECTION
GHG Inventory
Summary 5
1
SECTION
Overview 3
3
SECTION
GHG Inventory
Objectives 9
4
SECTION
Organisational
Boundaries 10
5
SECTION
Reporting Boundaries 11
6
SECTION
Methodology 14
7
SECTION
Reduction Initiatives and
Performance Tracking 20
Appendix 1 Comvita Organisational Structure 22, Appendix 2 Organisational Boundaries 23, Appendix 3 ISO 14064-1 Reporting Index 24
Appendix 4 Deloitte Independent Assurance Report 25
2.1 Total GHG emissions and removals by category 5
2.2 Total GHG emissions by category, activity and facility 6
2.3 Total GHG emissions by greenhouse gas (Category 1 & 2 only) 8
1.1 Introduction to Comvita's GHG inventory 3
1.2 Executive summary 4
3.1 Publication frequency and dissemination of this report 9
3.2 Person or entity responsible for this report 9
3.3 Base year 9
3.4 Base year recalculation 9
3.5 Compliance with standards including ISO 14064-1:2019 9
3.6 Verification of the GHG Inventory 9
4.1 Organisational structure and inventory scope 10
4.2 Consolidation approach 10
4.3 Organisational boundaries 10
4.4 Changes to organisational boundaries and historic
GHG inventory 10
5.1 Operational boundaries 11
5.2 GHG emissions, sinks and removals 11
5.3 Emission source exclusions 11
5.4 Emission source inclusions 12
6.1 GHG information management and monitoring procedures 14
6.2 Quantification methodologies and impact of uncertainty 15
6.3 GHG emission and removal factors and GWP values 19
6.4 Changes to approaches used previously 19
7.1 Reduction initiatives and removal enhancements 20
7.2 Performance indicators 20
7.3 Performance tracking 20
7.4 GHG reservoirs and carbon credits 21
2
GHG INVENTORY REPORT
CONTENTS
Comvita Limited (Comvita), is the global
market leader in M ̄anuka honey and
other related products from the hive. We
are deeply committed to acting in line
with our purpose, of working in harmony
with bees and nature in New Zealand, to
heal and protect the world.
Our sustainability focus at Comvita is guided by
our Harmony Plan – an ecosystem of principles
and objectives, built on Comvita’s founding values
and a determination to contribute to a world
where bees and people can thrive together in
harmony. The Comvita Harmony Plan reflects the
commitment by which we are holding ourselves
to account, and our ultimate view that to be
successful we must deliver positive outcomes for
all Comvita stakeholders. Under the principles of
treading lightly, embracing the science of nature
and strengthening our global hive, we have pledged
to provide ongoing and progressive leadership in
three critical ways:
1. Caring for bees and our environment:
2. Reinvesting in our team: and
3. Positive social impact.
A key commitment of the Harmony Plan is for
Comvita to be Carbon Neutral by 2025. We are
domiciled in New Zealand, registered under the
Companies Act 1993 and listed on the New Zealand
Stock Exchange. But our fully integrated business
model is global. This enables end-to-end supply
certainty and visibility across our principal activities
of Mānuka reforestation, apiary ownership,
manufacturing and marketing of quality natural
health products.
This is the first time that Comvita has published
a global greenhouse gas (GHG) inventory, setting
out the greenhouse gas emissions and removals
for Comvita Limited and all its subsidiaries. Our
report covers Comvita’s financial year 1 July 2021
to 30 June 2022. The results published for this year
will become the base year for future measurement,
and driving our GHG reduction action.
We plan to set science-based targets for this, and
accordingly have included an assessment of the
split of emissions that are considered to arise from
the Forestry, Land and Agriculture (FLAG) sector
and all other sources (non-FLAG). The boundary for
FLAG emissions includes the Plantations, Apiaries
and Olive Farm operations up to the farm gate.
Separate targets will be set for FLAG and non-
FLAG emissions, in line with the Science Based
Targets initiative (SBTi) methodology.
As we navigate our way to a bright future, we are
proud to publish the progress we have made so far.
ISO 14064-1: 9.2 a), f); 9.3.1 a), c); 9.3.2 a), d)
INTRODUCTION TO COMVITA’S GREENHOUSE GAS INVENTORY
3
INTRODUCTION
COMVITA.CO.NZ
1
Climate action, and taking a leadership stance
with respect to Greenhouse Gas emissions, is a
material focus for us at Comvita. Our 2025
Strategic Plan, shared in 2020, set out our aim to
be carbon neutral by 2025, and carbon positive by
2030. We are delighted with the progress we are
making.
Twelve months ago, we committed to calculating a
global GHG inventory, and we are pleased to be able
to report on both our results and progress we have
made over the last 12 months.
Our net global carbon position for Scope 1, 2 and
3 emissions for the year ended 30 June 2022 was
26,620 tCO2e. Concurrent with completing this
assessment, we have achieved a 4% reduction
in Scope 1 and 2 emissions across New Zealand
compared to the previous financial year, and
confirmed our operations in New Zealand are
again carbon net positive for Scope 1 and 2.
As the largest native forest manager in
New Zealand, our re-wilding programme goes
a long way to restoring vital balance in the
environment as a key mitigation strategy against
climate change. Baseline sequestration benefits
from our Mānuka forests for the year ended
30 June 2022 were 5,971 tCO2.
Our forward projections take into
account canopy maturity, and indicate
this will improve year on year at a rate of
approximately 50% per annum.
We have partnered with leading experts,
thinkstep-anz, to develop a clear Comvita
GHG inventory baseline, from which we
can now drive our science-based carbon
reduction strategy. We do see a lot of
opportunity and room for improvement,
and will now turn our focus to doubling
down on reducing absolute emissions and
emissions intensity, as well as capturing
increased removals over time.
We are pleased to confirm we now have a
clear line of sight to our goal of becoming
carbon neutral globally by 2025, and net
carbon positive by 2030.
GHG INVENTORY REPORT APPROVED BY:
BRETT HEWLETT
COMVITA MĀNUKA FOREST
CARBON REMOVALS
*
5,971 tCO
2
(FY21:3,821 tCO
2
)
COMVITA MĀNUKA FOREST
CARBON REMOVALS
*
5,971 tCO
2
(FY21:3,821 tCO
2
)
NZ POSITION
(S1, S2) NET POSITIVE
-5,010 tCO
2
e
(FY21:-2,817 tCO
2
e)
NZ OPERATIONS
(S1, S2) CARBON EMISSIONS
961 tCO
2
e
(FY21:1,004 tCO
2
e)
GLOBAL FOOTPRINT
(S1, S2, S3)
CARBON POSITION
32,591 tCO
2
e
GLOBAL NET POSITION
(S1, S2, S3)
26,620 tCO
2
e
Notes:
• S1 = Scope 1 direct GHGH emissions; S2 = Scope 2 Indirect emissions from imported energy;
S3 = Scope 3 Indirect emissions from transportation, products and other.
• Mānuka Forests sequestered 6,026 tCO2 in total. Removal figure includes biofuel combustion.
• Removals have been quantified for planted Mānuka forests under operational control and for wild Mānuka on Comvita-owned properties,
using the New Zealand Ministry for Primary Industries, Carbon Look-up Tables for Forestry in the Emissions Trading Scheme.
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
-4%
+56%
-78%
+56%
BASELINE
NEW
BASELINE
NEW
4
GHG INVENTORY REPORT
GHG INVENTORY SUMMARY
2.1 TOTAL GHG EMISSIONS AND REMOVALS BY CATEGORY
ISO 14064-1: 9.3.1 f), g), h), j); 9.3.2 f)
ISO CATEGORY & SUB-CATEGORY
GHG
PROTOCOL
SCOPE/
CATEGORY
GHG EMISSIONS tCO
2
e
COMVITA
LIMITED
NON-FLAGFLAG
1
CATEGORY
AS %
OF TOTAL
EMISSIONS
2
1
CATEGORY 1: DIRECT GHG EMISSIONS
1,0221798433%
1.1Mechanical sourcesS11,0071798283%
1.2Non-mechanical sourcesS115n/a150%
2
CATEGORY 2: INDIRECT GHG
EMISSIONS FROM IMPORTED ENERGY
4292082211%
2.1Electricity consumptionS24292082211%
3
CATEGORY 3: INDIRECT GHG EMISSIONS
FROM TRANSPORTATION
3,4013,266
13511%
3.1Upstream transport and distributionS3C42,1582,094647%
3.2Downstream transport and distributionS3C9662662n/a2%
3.3Business travelS3C6121121n/a0%
3.4Employee commutingS3C7460389712%
4
CATEGORY 4: INDIRECT GHG
EMISSIONS FROM PRODUCTS
USED BY ORGANISATION
26,82519,011
7,81482%
4.1Purchased goods & servicesS3C124,42317,1267,29775%
4.2Capital goodsS3C22,0081,7522566%
4.3Fuel-and energy-related activitiesS3C3332832491%
4.4WasteS3C53826120%
4.5Upstream leased assetsS3C82424n/a0%
5
CATEGORY 5: INDIRECT GHG EMISSIONS
ASSOCIATED WITH THE USE OF
PRODUCTS FROM THE ORGANISATION
866866
N/A
3%
5.1Processing of sold productsS3C1033n/a0%
5.3End of life of sold productsS3C12863863n/a3%
6
CATEGORY 6: INDIRECT GHG
EMISSIONS FROM OTHER SOURCES
48
48
N/A
0%
6.3InvestmentsS3C154848n/a0%
1
Emissions arising from activities in the Forestry, Land, and Agriculture sector. Companies with significant FLAG
emissions must set separate science-based targets for FLAG and Non-FLAG emissions.
2
% of total emissions excluding Optional and Biogenic.
3
Total applies a negative value to removals.
4
Optional reporting must not be included in science-based targets, so is separated from the main categories.
B
BIOGENIC EMISSIONS AND REMOVALS
3
(5,971)N/A(5,971)
B.2C sequestration due to land use changeBiogenic
Removals
(6,026)n/a(6,026)
B.3Biofuel combustionBiogenic
Emissions
55n/a55
O
OPTIONAL REPORTING
4
1089513
O.1Business travel - hotel staysS3C61515n/a
O.2Employee commuting
- working from home
S3C7
93
80
13
TOTAL GHG EMISSIONS
(EXCLUDING OPTIONAL AND BIOGENIC)
NET GHG EMISSIONS (EXCLUDING OPTIONAL)
32,59123,5789,013
26,62023,5783,042
COMVITA.CO.NZ
5
GHG INVENTORY SUMMARY
2
1
CATEGORY 1: DIRECT GHG
EMISSIONS
805
217
N/A
N/A
N/A
N/A
1,022
1.1Mechanical
sources
S1
790
217
n/a
n/a
n/a
n/a
1,007
1.1.1 Stationary
combustion
S1
97
96
n/a
n/a
n/a
n/a
193
1.1.2Mobile
combustion
S1
669
121
n/a
n/a
n/a
n/a
790
1.1.4Fugitive
emissions
S1
24
n/a
n/a
n/a
n/a
n/a
24
1.2Non-mechanical
sources
S1
15
0
n/a
n/a
n/a
n/a
15
1.2.2Soil N
2
O emissions
S1
15
0
n/a
n/a
n/a
n/a
15
1.2.4Soil CO
2
emissions
- liming
S1
0
0
n/a
n/a
n/a
n/a
0
2
CATEGORY 2: INDIRECT GHG
EMISSIONS FROM IMPORTED
ENERGY (LOCATION BASED)
156
209
64
N/A
N/A
N/A
429
2.1Electricity
consumption
S2
156
209
64
n/a
n/a
n/a
429
2.1.1Electricity
consumption
(location based)
S2
156
209
64
n/a
n/a
n/a
429
2.1.2Electricity
consumption
(market based)
S2
158
241
64
n/a
n/a
n/a
463
3
CATEGORY 3: INDIRECT
GHG EMISSIONS FROM
TRANSPORTATION
1,711
213
986
60
431
N/A
3,401
3.1Upstream
transport and
distribution
S3C4
1,324
110
593
7
124
n/a
2,158
3.1.1Inbound - external
S3C4
33
2
1
n/a
0
n/a
36
3.1.2Inbound - Comvita
S3C4
61
6
n/a
n/a
n/a
n/a
67
3.1.3Outbound -
Comvita
S3C4
1,226
72
187
3
96
n/a
1,584
3.1.4Warehouse -
Comvita
S3C4
4
30
405
4
28
n/a
471
3.2Downstream
transport and
distribution
S3C9
128
72
133
28
301
n/a
662
3.2.1Transport -
external
S3C9
128
67
45
25
104
n/a
369
3.2.2Warehouse -
external
S3C9
n/a
n/a
3
n/a
n/a
n/a
3
3.2.3Repackaging -
external
S3C9
0
5
85
3
197
n/a
290
3.3Business travelS3C635170105n/a121
3.4Employee
commuting
S3C7
224
30
190
15
1
n/a
460
ISO CATEGORY
& SUB-CATEGORY
GHG
PROTOCOL
SCOPE/
CATEGORY
GHG EMISSIONS tCO
2
e
NEW
ZEALAND
AUSTRALIAASIAEMEA
NORTH
AMERICA
INVESTMENTS
COMVITA
LIMITED
2.2 TOTAL GHG EMISSIONS BY CATEGORY, ACTIVITY AND FACILITY
ISO 14064-1: 9.3.2 e), f)
6
GHG INVENTORY REPORT
INVENTORY SUMMARY
4
CATEGORY 4: INDIRECT GHG
EMISSIONS FROM PRODUCTS
USED BY ORGANISATION
14,8961,5528,867536
974
N/A
26,825
4.1Purchased
goods &
services
S3C1
13,057
1,255
8,608
532
971
n/a
24,423
4.1.1Raw materialsS3C1-m6,079502n/an/an/an/a6,581
4.1.2PackagingS3C1-p1,1407377n/a3n/a1,293
4.1.3Contract
manufacturing
S3C1-cm
1,141
10
n/a
n/a
n/a
n/a
1,151
4.1.4Production-
related
S3C1-pr
114
2
n/a
n/a
n/a
n/a
116
4.1.5Non-production
related
S3C1-np
4,223
523
8,447
532
968
n/a
14,693
4.1.6Repairs &
maintenance
S3C1-r&m
360
145
84
n/a
n/a
n/a
589
4.2Capital goodsS3C21,59318722512n/a2,008
4.3Fuel- and
energy-related
activities
S3C3
211
106
15
n/a
n/a
n/a
332
4.4WasteS3C5334n/a1n/an/a38
4.5Upstream
leased assets
S3C8
2
0
19
2
1
n/a
24
5
CATEGORY 5: INDIRECT GHG
EMISSIONS ASSOCIATED WITH
THE USE OF PRODUCTS FROM
THE ORGANISATION
67
46
520
10
223
N/A
866
5.1Processing of
sold products
S3C10
n/a
n/a
0
n/a
3
n/a
3
5.3End of life of
sold products
S3C12
67
46
520
10
220
n/a
863
6
CATEGORY 6: INDIRECT
GHG EMISSIONS FROM
OTHER SOURCES
N/A
N/A
N/A
N/A
N/A
48
48
6.3InvestmentsS3C15n/an/an/an/an/a4848
TOTAL GHG EMISSIONS
17,6352,23710,4376061,6284832,591
ISO CATEGORY
& SUB-CATEGORY
GHG
PROTOCOL
SCOPE/
CATEGORY
GHG EMISSIONS tCO
2
e
NEW
ZEALAND
AUSTRALIAASIAEMEA
NORTH
AMERICA
INVESTMENTS
COMVITA
LIMITED
2.2 TOTAL GHG EMISSIONS BY CATEGORY, ACTIVITY AND FACILITY (CONT.)
ISO14064-1: 9.3.2 e), f)
INVENTORY SUMMARY
GHG INVENTORY REPORT
7
PERCENTAGE OF GHG EMISSIONS BY FACILITY
7%
54%
5%
2%
32%
New Zealand
Australia
Asia
EMEA
North America
BREAKDOWN OF TOTAL GHG
EMISSIONS BY CATEGORY
11%
1%
3%
0%
0%
3%
82%
Category 1 Direct GHG Emissions
Category 2 Indirect GHG emissions
from imported energy
Category 3 Indirect GHG emissions
from transportation
Category 4 Indirect GHG emissions
from products used by organisation
Category 5 Indirect GHG emissions
associated with the use of products
from the organisation
Category 6 Indirect GHG emissions
from other sources
CO
2
CH
4
N
2
OHFCSF
6
PFCNF
3
TOTAL
CO
2
e
1
CATEGORY 1: DIRECT GHG
EMISSIONS
96762524N/A
N/A
N/A
1,022
1.1Mechanical Sources96261524n/an/an/a1,007
1.1.1Stationary Combustion18841n/an/an/an/a193
1.1.2Mobile Combustion774214n/an/an/an/a790
1.1.4Fugitive Emissions0n/an/a24n/an/an/a24
1.2Non-Mechanical Sources5n/a10n/an/an/an/a15
1.2.2Soil N
2
O Emissions5n/a10n/an/an/an/a15
1.2.4Soil CO
2
Emissions - Liming0n/an/an/an/an/an/a0
2
CATEGORY 2: INDIRECT
GHG EMISSIONS FROM
IMPORTED ENERGY
417
11
1
N/A
N/A
N/A
N/A
429
2.1Electricity consumption4171110000429
ISO CATEGORY & SUB-CATEGORYGHG EMISSIONS tCO
2
e
Investments
GHG INVENTORY REPORT
8
2.3 TOTAL GHG EMISSIONS BY GREENHOUSE GAS (CATEGORY 1 & 2 ONLY)
ISO 14064-1: 9.3.1 f)
INVENTORY SUMMARY
3
COMVITA.CO.NZ
9
GHG INVENTORY OBJECTIVES
INVENTORY OBJECTIVES
3.1 PUBLICATION FREQUENCY AND
DISSEMINATION OF THIS REPORT
ISO 14064-1: 9.2 b), d), g)
This GHG inventory report will be published
annually moving forward as part of Comvita’s
annual reporting process. It will be made
available publicly through Comvita’s website.
This GHG inventory report has been compiled
to communicate to investors, staff, and other
stakeholders, Comvita’s baseline GHG inventory
and progress towards improvement targets.
It has also been created to align with the
requirements of the proposed climate-related
disclosure standards.
3.2 PERSON OR ENTITY RESPONSIBLE
FOR THIS REPORT
ISO 14064-1: 9.2 c); 9..3.1 b)
This GHG inventory report is ultimately the
responsibility of the Audit and Risk Committee
of the Comvita Board of Directors. The person
responsible for this GHG inventory report is
Nigel Greenwood, Chief Financial Officer.
Erin Swanson, Sustainability Programmes
Lead, has led the development of this GHG
Inventory Report with support from the
Comvita Sustainability and Finance teams, and
numerous other Comvita staff throughout the
global business.
3.3 BASE YEAR
ISO 14064-1: 9.3.1 k)
The base year for the GHG Inventory Report will
be set as Comvita’s financial year 1 July 2021 to
30 June 2022 (current reporting year). This is the
first year that Comvita has published a global
GHG inventory, and it will be used as the base
year for setting GHG targets in the future.
3.4 BASE YEAR RECALCULATION
ISO 14064-1: 9.3.1 l)
Not applicable for this GHG Inventory Report
given current reporting year is the base year.
The Comvita GHG Procedures require that the
base year shall be recalculated and restated in
the event of significant changes (>±5% of the
total inventory).
3.5 COMPLIANCE WITH STANDARDS
INCLUDING ISO 14064-1:2018
ISO 14064-1: 9.3.1 r)
This GHG Inventory Report has been prepared in
accordance with:
• ISO 14064-1:2018: Greenhouse gases –
Part 1: Specification with guidance at the
organization level for quantification and
reporting of greenhouse gas emissions and
removals, 2019.
• Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard, 2004.
• Greenhouse Gas Protocol: Corporate Value
Chain (Scope 3) Accounting and Reporting
Standard, 2011.
The following guidance documents have also
been used in the preparation of this GHG
Inventory Report:
• Greenhouse Gas Protocol: Agricultural
Guidance Interpreting the Corporate
Accounting and Reporting Standard for the
agricultural sector, 2014.
• Greenhouse Gas Protocol: Scope 2 Guidance,
2015 .
• Greenhouse Gas Protocol: Technical Guidance
for Calculating Scope 3 Emissions, 2013.
Comvita’s activities include emissions and
removals from the Land Sector and plan to align
reporting with the expected Greenhouse Gas
Protocol Land Sector and Removals Guidance,
once it is available (expected end 2022).
A reporting index in alignment with ISO 14064-1
is provided in Appendix 3.
3.6 VERIFICATION OF THE GHG INVENTORY
ISO 14064-1: 9.3.1 s)
This GHG Inventory Report has been audited by
Deloitte, a third-party independent assurance
provider. A limited level of assurance has been
given over the assertions and quantification
included in this report.
ORGANISATIONAL BOUNDARIES
4.1 ORGANISATIONAL STRUCTURE
AND INVENTORY SCOPE
ISO 14064-1: 9.3.1 d)
This GHG inventory is for Comvita Limited, the
parent company with its registered office in
New Zealand, and all its subsidiaries.
Organisational boundaries were set with
reference to the methodology described in the
GHG Protocol and ISO14064-1:2018 standards.
4.2 CONSOLIDATION APPROACH
ISO 14064-1: 9.3.1 d)
Comvita takes an operational control approach.
This means that 100% of the GHG emissions
from operations over which Comvita has control
in the relevant financial year are included.
4.3 ORGANISATIONAL BOUNDARIES
ISO 14064-1: 9.3.1 d)
The Organisational Boundaries, and exclusions,
for Comvita's FY22 GHG inventory are defined
in the Appendix 2. All entities have been
included, subsidiaries, associates, joint ventures
and investments, as at 30 June 2022.
Comvita has defined facilities generally as
being at a region level, apart from Australia and
New Zealand where Comvita has production
facilities, which are each reported on at a
country level. All entities outside Comvita's
operational control are grouped into a single
‘Investments’ facility, covering Comvita's
equity share of emissions and removals. The
New Zealand facility includes emissions arising
from Comvita’s core activities associated
with the production of Mānuka honey and
manufacturing of honey and bee-related
products, as well as market support and New
Zealand sales and distribution. The Australia
facility includes emissions arising from the
production and manufacturing of Olive Leaf
products, as well as local distribution. Comvita’s
activities in all other regions are sales and
distribution only. Data is captured at a more
granular level for internal use. Comvita’s
organisational structure is included in
Appendix 1 and shows how the entities are
grouped into facilities.
4.4 CHANGES TO ORGANISATIONAL
BOUNDARIES AND HISTORIC
GHG INVENTORY
ISO 14064: 9.3.1 l)
For the year ended 30 June 2021, Comvita
reported on its GHG inventory for NZ only
scope 1, scope 2 and limited scope 3 emissions.
This GHG Inventory Report covers the GHG
inventory for the whole of Comvita and so will
be used as the base year going forward.
The biogenic removals related to Comvita’s
Mānuka plantations were stated as 4,085 tCO
2
in the year ended 30 June 2021. Following an
update to Comvita’s plantations data, this
figure has been restated
to 3,821 tCO
2
.
COMVITA.CO.NZ
10
ORGANISATIONAL BOUNDARIES
5
REPORTING BOUNDARIES
GHG INVENTORY REPORT
COMVITA.CO.NZ
11
REPORTING BOUNDARIES
5.1 OPERATIONAL BOUNDARIES
ISO 14064-1: 9.3.1 e)
A review of the operations and activities of all
Comvita’s entities, subsidiaries, associates, joint
ventures, and investments was conducted using
the GHG Protocol Scopes and Categories to
identify the emissions and removals relevant for
each area. This review of sources and sinks will
be conducted on an annual basis going forward.
Activity contributing to all relevant seven Kyoto
gases was considered for the Comvita GHG
inventory: carbon dioxide (CO
2
), methane (CH
4
),
nitrous oxide (N
2
O), hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs), sulphur hexafluoride
(SF
6
), and nitrogen trifluoride (NF
3
), of which
only the first four gases are relevant for
Comvita.
A materiality (or significance) threshold of 1%
of total emissions per Scope was applied to
identify each of the emission sources, Scopes
and Categories. If emissions from a particular
Scope or Category exceeds this threshold,
it is classified as ‘material’ in the context of
each Scope. Sources or Categories below this
threshold are classified as immaterial. No
emission sources have been deliberately excluded
from the inventory, irrelevant of materiality,
rather the materiality threshold has been used
to determine the level of detail required, with
more effort expended to improve the accuracy
and certainty of more material sources.
5.2 GHG EMISSIONS, SINKS AND REMOVALS
ISO 14064-1: 9.3.1 g)
Comvita has reviewed its land use arrangements
to identify its biogenic CO
2
removals and GHG
sinks from existing Mānuka and native bush,
Mānuka plantings, and from olive plantings, that
are within its operational control.
• Comvita owned land – 100% of removals
from pre-existing Mānuka and native bush are
within Comvita’s operational control and are
reported in Comvita’s GHG inventory.
• Comvita operated plantings – 100% of
removals from Comvita operated plantings
of Mānuka are within Comvita’s operational
control and are reported in Comvita’s
GHG inventory.
• Joint venture (JV) planting Makino Station
– Comvita does not have operational control
of this joint venture and direct removals are
out of scope for Comvita’s GHG inventory.
Comvita's share of removals, along with
Comvita's overall removals when including
the JV, are reported separately in section 7.4.
• Comvita owned olive plantings – 100% of
any removals from Comvita’s olive plantings
will be within Comvita’s operational
control. Comvita’s olive tree planting are
not expected to result in significant above-
ground sequestration due to the nature of
the operations (harvesting of the leaf and
pruning). Comvita is currently investigating the
sequestration of carbon in the roots and soil.
Removals have not currently been included due
to the lack of data and certainty.
5.3 EMISSION SOURCE EXCLUSIONS
ISO 14064-1: 9.3.1 i)
Sequestration from Comvita olive plantings
have not been included in Comvita’s GHG
inventory for this year due to the lack of data
and certainty.
The emissions from external warehousing have
been excluded in most cases due to being
de minimis.
ISO 14064-1: 9.3.1 e)
ISO CATEGORY
& SUB-CATEGORY
GHG
PROTOCOL
SCOPE/
CATEGORY
RELEVANCE TO COMVITA FACILITIES
NEW
ZEALAND
AUSTRALIAASIAEMEA
NORTH
AMERICA
INVESTMENTS
1CATEGORY 1: DIRECT GHG EMISSIONS
1.1Mechanical
sources
S1RelevantRelevantn/an/an/an/a
1.1.1Stationary
combustion
S1RelevantRelevantn/an/an/an/a
1.1.2Mobile combustionS1RelevantRelevantn/an/an/an/a
1.1.3Process emissionsS1n/an/an/an/an/an/a
1.1.4Fugitive emissionsS1Relevantn/an/an/an/an/a
1.2Non-mechanical
sources
S1RelevantRelevantn/an/an/an/a
1.2.1Enteric fermentationS1n/an/an/an/an/an/a
1.2.2Soil N
2
O emissionsS1RelevantRelevantn/an/an/an/a
1.2.3Manure
management
S1
n/an/an/an/an/an/a
1.2.4Liming - soil CO
2
emissions
S1
RelevantRelevantn/an/an/an/a
1.3CO2 emissions
from land use
change
S1n/an/an/an/an/an/a
2
CATEGORY 2: INDIRECT GHG EMISSIONS FROM IMPORTED ENERGY
2.1ElectricityS2RelevantRelevantRelevantn/an/an/a
3
CATEGORY 3: INDIRECT GHG EMISSIONS FROM TRANSPORTATION
3.1Upstream
transport and
distribution
S3C4RelevantRelevantRelevantRelevantRelevantn/a
3.1.1Inbound - external
S3C4RelevantRelevantRelevantn/a
De
Minimis
n/a
3.1.2Inbound - ComvitaS3C4RelevantRelevantn/an/an/an/a
3.1.3Outbound - ComvitaS3C4RelevantRelevantRelevantRelevantRelevantn/a
3.1.4WarehousingS3C4RelevantRelevantRelevantRelevantRelevantn/a
3.2Downstream
transport and
distribution
S3C9RelevantRelevantRelevantRelevantRelevantn/a
3.2.1Transport - externalS3C9RelevantRelevantRelevantRelevantRelevantn/a
3.2.2Warehouse - external
S3C9
De
Minimis
De
Minimis
De
Minimis
De
Minimis
De
Minimis
n/a
3.2.3Repackaging -
external
S3C9RelevantRelevantRelevantRelevantRelevantn/a
3.3Business travelS3C6RelevantRelevantRelevantRelevantRelevantn/a
3.4Employee
commuting
S3C7RelevantRelevantRelevantRelevantRelevantn/a
4
CATEGORY 4: INDIRECT GHG EMISSIONS FROM PRODUCTS USED BY ORGANISATION
4.1Purchased goods
& services
S3C1RelevantRelevantRelevantRelevantRelevantn/a
4.1.1Raw materialsS3C1-mRelevantRelevantn/an/an/an/a
4.1.2PackagingS3C1-pRelevantRelevantn/aRelevantn/an/a
4.1.3Contract
manufacturing
S3C1-cm
Relevant
Relevant
n/a
n/a
n/a
n/a
4.1.4Production-relatedS3C1-prRelevantRelevantn/an/an/an/a
GHG INVENTORY REPORT
12
5.4 EMISSION SOURCE INCLUSIONS
ISO 14064-1: 9.3.1 e)
REPORTING BOUNDARIES
4.1.5Non-production
related
S3C1-np
Relevant
Relevant
Relevant
Relevant
Relevant
n/a
4.1.6Repairs &
maintenance
S3C1-r&m
RelevantRelevantRelevantn/an/an/a
4.2Capital goodsS3C2RelevantRelevantRelevantRelevantRelevantn/a
4.3Fuel- and energy-
related activities
S3C3
Relevant
Relevant
Relevant
n/a
n/a
n/a
4.4WasteS3C5RelevantRelevantn/aRelevantn/an/a
4.5Upstream
leased assets
S3C8RelevantRelevantRelevantn/an/an/a
5
CATEGORY 5: INDIRECT GHG EMISSIONS ASSOCIATED WITH THE USE OF PRODUCTS FROM THE ORGANISATION
5.1Processing of sold
products
S3C10
n/a
n/a
Relevant
n/a
Relevant
n/a
5.2Use of sold
products
S3C11n/an/an/an/an/an/a
5.3End of life of sold
products
S3C12RelevantRelevantRelevantRelevantRelevantn/a
6
CATEGORY 6: INDIRECT GHG EMISSIONS FROM OTHER SOURCES
6.1Downstream
leased assets
S3C13
n/a
n/a
n/a
n/a
n/a
n/a
6.2FranchisesS3C14n/an/an/an/an/an/a
6.3Investments
S3C15n/an/an/an/an/aRelevant
B
BIOGENIC EMISSIONS AND REMOVALS
B.1Land use
management
Biogenic
CO2 Fluxes
n/an/an/an/an/an/a
B.2C sequestration
due to land use
change
Biogenic
CO2
Removals
RelevantExcludedn/an/an/an/a
B.3Biofuel
combustion
Biogenic
CO2
Emissions
Relevantn/an/an/an/an/a
O
OPTIONAL REPORTING
O.1Business travel -
hotel stays
S3C6RelevantRelevantRelevantRelevantRelevantn/a
O.2Employee
commuting -
working from
home
S3C7RelevantRelevantRelevantRelevantRelevantn/a
ISO CATEGORY
& SUB-CATEGORY
GHG
PROTOCOL
SCOPE/
CATEGORY
RELEVANCE TO COMVITA FACILITIES
NEW
ZEALAND
AUSTRALIAASIAEMEA
NORTH
AMERICA
INVESTMENTS
GHG INVENTORY REPORT
13
5.4 EMISSION SOURCE INCLUSIONS (CONT.)
ISO 14064-1: 9.3.1 e)
REPORTING BOUNDARIES
METHODOLOGY
——
COMVITA.CO.NZ
14
6.1 GHG INFORMATION MANAGEMENT
AND MONITORING PROCEDURES
ISO 14064-1: 9.3.2 i)
This GHG Inventory Report has been prepared
in accordance with Comvita’s Greenhouse
Gas Inventory Management and Monitoring
Procedures (“Comvita GHG Procedures”). These
Comvita GHG Procedures have been developed
to meet the requirements of ISO 14064-1:2018 –
Greenhouse Gases Part 1 section 8.1.
The Comvita GHG Procedures contain:
• applicable standards and guidance;
• consolidation approach;
• process for reviewing organisational and
operational boundaries, and sources and sinks;
• included emission types;
• materiality threshold applied;
• data collection and information storage
approach;
• details of calculation approaches; and
• internal quality assurance processes.
The Comvita GHG Procedures will be subject
to review annually, considering improvement
opportunities, and recommendations from the
formal assurance processes. Any changes to
this document will be approved by the Chief
Financial Officer and any material changes in
assumptions will be communicated to Comvita’s
Audit and Risk Committee.
6
METHODOLOGY
METHODOLOGY
1
CATEGORY 1: DIRECT GHG EMISSIONS
1.1Mechanical Sources3%Fuel-based100%n/a3.91Fuel use data in owned and leased
vehicles is collected from fuel card
and farm fuel tank records. Some
minor usage estimated from staff
expense claims using FY21 average
fuel price. LPG use data is from
invoices. Refrigerant top-up data is
provided by maintenance supplier
records. The quantity of wood burned
on apiary sites is estimated based
on the number of hive boxes. Overall
uncertainty is very low.
1.2Non-mechanical
sources
0.%IPCC Tier 1100%n/a2.96Quantities of nitrogen are calculated
from fertiliser use data from site
records and stated composition.
Quantities of AgLime and Dolomite
are taken from purchasing records,
plus estimation of limestone content
of fertiliser (conservatively assumed
to be remainder after stated
composition). Soil emission factors
are taken from MfE, based on IPCC
Tier 1. The accuracy of the method is
considered to be adequate, given the
relatively small emissions from this
sub-category.
2
CATEGORY 2: INDIRECT GHG EMISSIONS FROM IMPORTED ENERGY
2.1Electricity
consumption
1%Location-based
approach
100%n/a3.97Usage data predominantly captured
from electricity invoicing, with some
minor sources calculated from spend.
Inventory is calculated using location
based methodology. Market based
emissions have also been calculated,
using location based grid mix emission
factors where residual grid mix factors
were not available.
3
CATEGORY 3: INDIRECT GHG EMISSIONS FROM TRANSPORTATION
3.1Upstream Transport
and Distribution
7%Supplier-
specific
Distance-based
Site-specific
Spend-based
41%
39%
19%
1%
97%3.02Mainfreight reports provide supplier-
specific emissions for majority of
Comvita-commissioned T&D, while
other freight companies provide tonne.
km data. The most significant inbound
material is honey from various apiaries,
for which Comvita commissions
the freight. Sugar syrup is also a
significant inbound material, and
tonne.km data has been calculated
from supplier locations. The transport
of other raw materials and packaging
has been calculated using estimated
distances. Overall uncertainty is low.
3.2Downstream
Transport and
Distribution
2%Distance-based
Average-data
56%
44%
0.1%1.00T&D data was not available from
downstream partners, so have been
conservatively estimated for each
market. Emissions are also estimated
for repackaging of products for digital
sales and some customer-specific
repackaging. Overall uncertainty is very
high, although calculated emissions are
relatively small, and the approach is
considered adequate to the materiality
of the category.
ISO CATEGORY &
SUB-CATEGORY
% OF COMVITA’S
TOTAL GHG EMISSIONSGHG PROTOCOL CALCULATION METHOD
% OF EMISSIONS BY
METHOD FOR EACH SUB-CATEGOR
% EMISSIONS
BASED ON DATA PROVIDED BY SUPPLIERS/VALUE CHAIN PARTNERS
5
ACTIVITY DATA CERTAINTY - CALCULATED
(4=HIGH, 1=LOW)
6
DESCRIPTION OF METHODOLOGY
AND UNCERTAINTY
5
Data provided by suppliers/value chain partners refers to supplier-specific emissions, emission factors or distance data which is specific to
suppliers' activities.
6
Activity data certainty is based on a Certainty Score (1-4) for each activity data used for calculations. Score 4 (high)= Measured e.g. invoices,
Score 3 (medium-high)=Calculated, Score 2 (medium-low)=Literature, Score 1 (Low)=Estimate. The score is weighted by emissions.
GHG INVENTORY REPORT
15
6.2 QUANTIFICATION METHODOLOGIES AND IMPACT OF UNCERTAINTY
ISO 14064-1: 9.3.1 m), p), q)
METHODOLOGY
3.3Business travel0%Distance-based
Spend-based
99%
1%
78%3.66Majority of travel data for New
Zealand and China is provided by travel
agency reports, supplemented with
internal records for other markets.
Additional distances are estimated
from expense claims. Uncertainty is
low and adequate to the materiality of
the category.
3.4Employee
commuting
2%Distance-based100%0%1.00Employee commuting survey carried
out for each region and used to
estimate overall commuting habits,
modes and distances. Response rate
of 48% across the business. High
uncertainty, but low impact due to
materiality of the category.
4
CATEGORY 4: INDIRECT GHG EMISSIONS FROM PRODUCTS USED BY ORGANISATION
4.1Purchased goods
& services
75%Spend-based
Average-data
Hybrid
Supplier-
specific
62%
32%
5%
1%
1.7%1.94Very high overall uncertainty for this
most significant category. Additional
detail is provided for each sub-
category.
It should be noted that the EIO-
LCA emission factors used for the
spend-based method are based on
top-down analysis and tend to result
in higher calculated emissions than
other methods, and so emissions for
this category would be expected to
decrease with improved data such as
supplier-specific emissions factors.
This conservative approach also results
in spend-based emissions appearing
to be more dominant in the inventory
overall, and does not necessarily imply
that these emissions are the most
significant or important to Comvita.
4.1.1Raw materials20%Average-data100%0%3.98Raw honey is the most significant
raw material purchased, with mass
measured in produciton records. Other
significant raw materials include
sugar feed and glycerine for olive leaf
extract, with data collected from
supplier reports. Mass of other minor
raw materials, chemicals and fertiliser
are tracked through internal records.
Low uncertainty for sub-category,
with improvements possible through
supplier-specific emission factors for
key raw materials.
4.1.2Packaging4%Average-data100%0%2.91Mass data calculated from purchasing
data system (with known mass
per item) for purchased packaging.
Medium-low uncertainty for sub-
category, with improvements possible
for supplier-specific emission factors
for key packaging materials.
4.1.3Contract
manufacturing
4%Hybrid100%34%1.59Supplier data collected for contract
manufacturing and contractor
activities, covering direct and indirect
energy consumption, and quantities
of packaging and and raw materials.
Where supplier data was unable to be
collected, internal records have been
used to estimate quantities. Medium
uncertainty, with improvements
possible through supplier-specific
emission factors for materials.
5
Data provided by suppliers/value chain partners refers to supplier-specific emissions, emission factors
or distance data which is specific to suppliers' activities.
6
Activity data certainty is based on a Certainty Score (1-4) for each activity data used for calculations.
Score 4 (high)= Measured e.g. invoices, Score 3 (medium-high)=Calculated, Score 2 (medium-
low)=Literature, Score 1 (Low)=Estimate. The score is weighted by emissions.
ISO CATEGORY &
SUB-CATEGORY
% OF COMVITA’S
TOTAL GHG EMISSIONSGHG PROTOCOL CALCULATION METHOD
% OF EMISSIONS BY
METHOD FOR EACH SUB-CATEGOR
% EMISSIONS
BASED ON DATA PROVIDED BY SUPPLIERS/VALUE CHAIN PARTNERS
5
DESCRIPTION OF METHODOLOGY
AND UNCERTAINTYACTIVITY DATA CERTAINTY - CALCULATED
(4=HIGH, 1=LOW)
6
GHG INVENTORY REPORT
16
6.2 QUANTIFICATION METHODOLOGIES AND IMPACT OF UNCERTAINTY (CONT.)
ISO 14064-1: 9.3.1 m), p), q)
METHODOLOGY
4.1.4Production related0%Spend-based100%0%1.00Generic EIO-LCA emission factors
applied to production related activities
where contractor specific data was
not available. High uncertainty, but
very low materiality for sub-category.
4.1.5Non-production
related
45%Supplier-
specific
Spend-based
1%
99%
0%1.01Supplier-specific spend-based emission
factors used where available. Generic
EIO-LCA emission factors applied to all
other non-production related spend.
Region-specific EIO-LCA factors have
been used for significant markets, with
the exception that China factors have
been used as a proxy for Hong Kong,
Korea, and Japan, while New Zealand
factors have been used as a proxy for
the UK and Europe. This approach was
taken due to the relatively small spend
in these markets.
The China EIO-LCA emission factors
have limited categories suitable to
the services used by Comvita, further
increasing the uncertainty of emissions
calculations for these markets.
Very high uncertainty for this
significant sub-category.
4.1.6Repairs &
maintenance
2%Spend-based100%0%1.00Generic EIO-LCA emission factors
applied to R&M spend. Very high
uncertainty but relatively low
materiality.
4.2Capital goods6%Spend-based
Average-data
Supplier-
specific
74%
25%
1%
1%1.00Supplier-specific emission factors
applied to IT equipment and software.
Material mass data collected for
significant capital projects where
possible, with emission factors sourced
from region-specific Environmental
Product Declarations. Generic EIO-LCA
emission factors applied to all other
capital spend. Very high uncertainty
but relatively low materiality.
4.3Fuel- and energy-
related activities
1%Average-data100%0%3.93Data collected as per Category 1 and
2. Very low uncertainty and materiality.
4.4Waste0%Waste-type-
specific
100%0%3.59Waste type and quantity data collated
from supplier reports. Uncertainty is
low and adequate to the materiality of
the category.
4.5Upstream leased
assets
0%Average-data100%0%3.83Area of retail and office space
collected from lease records. Emissions
calculated based on average
energy intensity for retail and office
space in Australia, with country-
specific electricity emission factors.
Uncertainty is medium-high, but
considered adequate to the materiality
of the category.
ISO CATEGORY &
SUB-CATEGORY
% OF COMVITA’S
TOTAL GHG EMISSIONSGHG PROTOCOL CALCULATION METHOD
% OF EMISSIONS BY
METHOD FOR EACH SUB-CATEGOR
% EMISSIONS
BASED ON DATA PROVIDED BY SUPPLIERS/VALUE CHAIN PARTNERS
5
DESCRIPTION OF METHODOLOGY
AND UNCERTAINTY
6.2 QUANTIFICATION METHODOLOGIES AND IMPACT OF UNCERTAINTY (CONT.)
ISO 14064-1: 9.3.1 m), p), q)
METHODOLOGY
ACTIVITY DATA CERTAINTY - CALCULATED
(4=HIGH, 1=LOW)
6
5
Data provided by suppliers/value chain partners refers to supplier-specific emissions, emission factors or distance data which is specific to
suppliers' activities.
6
Activity data certainty is based on a Certainty Score (1-4) for each activity data used for calculations. Score 4 (high)= Measured e.g. invoices,
Score 3 (medium-high)=Calculated, Score 2 (medium-low)=Literature, Score 1 (Low)=Estimate. The score is weighted by emissions.
GHG INVENTORY REPORT
17
5
CATEGORY 5: INDIRECT GHG EMISSIONS ASSOCIATED WITH THE USE OF PRODUCTS FROM THE ORGANISATION
5.1Processing of sold
products
0%Average-data100%0%1.00Quantities of product sold for further
processing collated from sales data.
Emissions are estimated based on
supplier-specific energy data collected
for contract manufacturing, used
as proxies based on the intended
manufacturing process. Uncertainty is
medium, and considered adequate to
the materiality of the category.
5.3End of life of sold
products
3%Waste-type-
specific
100%0%1.00Packaging mass data collated from
purchased packaging and packaging
used in contract manufacturing
(both assigned by market based
on proportion of total sales), and
estimates of repackaging used
in downstream transport and
distribution (assigned to distribution
market). Recovery rates for each
packaging type in each market
were sourced from a recent study
undertaken for Comvita's packaging,
with conservative assumptions applied
where data was not available. Very
high uncertainty, but relatively low
materiality.
6
CATEGORY 6: INDIRECT GHG EMISSIONS FROM OTHER SOURCES
6.3Investments0%Investment-
specific
100%100%3.00Equity share of Category 1 and 2
emissions provided by each entity.
Uncertainty is medium-low and
adequate to the materiality of the
category.
B
BIOGENIC EMISSIONS AND REMOVALS
B.2C sequestration due
to land use change
n/aIPCC Tier 2100%n/a2.00Data collected for area and planting
year for each Mānuka plantation
zone, plus area and estimated
establishment year for wild forests on
Comvita-owned land. Medium-high
uncertainty. No removals calculated for
olive farms due to high uncertainty of
methodology.
B.3Biofuel combustionn/aFuel-based100%n/a1.00Data collected as per Category 1. Very
low uncertainty and materiality.
O
OPTIONAL REPORTING
O.1Business travel -
hotel stays
n/aDistance-based
Spend-based
99%
1%
66%3.09Data collected as per Business Travel.
Uncertainty is medium-low and
adequate to the materiality of the
category.
O.2Employee
commuting -
working from home
n/aDistance-based100%0%1.00Data collected as per Employee
Commuting. Uncertainty is high but
adequate to the materiality of the
category.
ISO CATEGORY &
SUB-CATEGORY
% OF COMVITA’S
TOTAL GHG EMISSIONSGHG PROTOCOL CALCULATION METHOD
% OF EMISSIONS BY
METHOD FOR EACH SUB-CATEGOR
% EMISSIONS
BASED ON DATA PROVIDED BY SUPPLIERS/VALUE CHAIN PARTNERS
5
DESCRIPTION OF METHODOLOGY
AND UNCERTAINTY
6.2 QUANTIFICATION METHODOLOGIES AND IMPACT OF UNCERTAINTY (CONT.)
ISO 14064-1: 9.3.1 m), p), q)
METHODOLOGY
ACTIVITY DATA CERTAINTY - CALCULATED
(4=HIGH, 1=LOW)
6
5
Data provided by suppliers/value chain partners refers to supplier-specific emissions, emission factors or distance data which is specific to
suppliers' activities.
6
Activity data certainty is based on a Certainty Score (1-4) for each activity data used for calculations. Score 4 (high)= Measured e.g. invoices,
Score 3 (medium-high)=Calculated, Score 2 (medium-low)=Literature, Score 1 (Low)=Estimate. The score is weighted by emissions.
GHG INVENTORY REPORT
18
EMISSIONS FACTORS
PROVIDED BY
SOURCE SOURCE - YEAR
GLOBAL
WARMING
POTENTIAL 100
(GWP 100)
New Zealand Ministry
for the Environment
Measuring emissions: a guide for organisations:
2022 summary of Emission factors
2022
IPCC AR4
New Zealand Energy
Certificate System
NZECS Residual Supply Mix for
Electricity Certification
2022
IPCC AR4
New Zealand Ministry
for Primary Industries
Carbon Look-up Tables for Forestry in the
Emissions Trading Scheme
2017
Australian Department of
Industry Science and Resources
National Greenhouse Accounts Factors2021IPCC AR5
UK GovernmentUK Government GHG Conversion Factors
for Company Reporting - 2022
2022
IPCC AR4
UK GtovernmentUK Government GHG Conversion Factors
for Company Reporting - 2018
2018
IPCC AR4
SpheraGaBi LCA Database - Service pack 2021.22021IPCC AR5
Worldmrio - EoraEora licence - Scope 3 multipliers
7
2017IPCC AR4
Carbon FootprintCountry specific electricity grid greenhouse
gas emission factors
2022
n/a
Other publicly available reports MultipleMultipleIPCC AR4
Comvita's suppliersMultipleMultipleUnknown
7
Eora 2017 emission factors inflated to 2021 for China and USA and to Quarter 2 2021 for NZ and Australia
by applying relevant country inflation rates.
Sequestration rates for Mānuka have been
calculated using the Ministry for Primary
Industries’ (MPI) Carbon Look-up Table 2
(MPI: Carbon Look-up Tables for Forestry
in the Emissions Trading Scheme, 2017).
Anthropogenic biogenic CO2 emissions
and removals are quantified separately in
tonnes of CO2e.
Anthropogenic biogenic emissions of other
GHGs (e.g. CH4 and N2O from combustion
of biofuels) have been quantified and reported
with the other direct emissions in Category 1.
6.4 CHANGES TO APPROACHES USED
PREVIOUSLY
ISO 14064-1: 9.3.1 n)
Not applicable for this GHG Inventory Report
given current reporting year is the first year
Comvita has produced a global GHG inventory.
GHG INVENTORY REPORT
19
6.3 GHG EMISSION AND REMOVAL FACTORS AND GWP VALUES
ISO 14064-1: 9.3.1 o), t)
METHODOLOGY
1,200
1,000
800
600
400
200
0
FY21FY22
tCO
2
e
Scope 1Scope 2
COMPARISON OF COMVITA NZ
SCOPE 1 AND 2 EMISSIONS
7.1 REDUCTION INITIATIVES AND
REMOVAL ENHANCEMENTS
ISO 14064-1: 9.3.2 b)
Comvita has set a goal to be carbon neutral
by 2025.
Comvita has defined carbon neutral as 100%
offsetting all its scope 1, 2 and 3 GHG emissions
as calculated within its global GHG inventory.
This will be achieved through:
• the removals (“insets”) from existing native
and Mānuka on Comvita owned land, from
Mānuka forest plantings, and from Comvita
owned olive plantings; and
• the reductions of its global GHG emissions.
Comvita supports scientific, verified and
transparent approaches to setting carbon
reduction goals, as required by the Science
Based Targets initiative (SBTi).
These reduction targets and action plans, along
with the carbon removals, will support Comvita’s
goal to achieve carbon neutrality by 2025.
7.2 PERFORMANCE INDICATORS
ISO 14064-1: 9.3.2 g)
Comvita will report on its progress towards its
carbon neutral target, publishing annually its
gross GHG emissions, carbon removals, and net
GHG emissions after removals each year.
Comvita has already committed to reduce its
absolute NZ Scope 1 and 2 Greenhouse Gas
(GHG) emissions 50% by 2030 from the 2021
levels reported in the previous inventory. With
the move to a consistent base year of 2022 for
the global Comvita GHG inventory, any future
targets will incorporate and be consistent with
this initial target and aligned with SBTi.
Once Comvita has its total global Comvita GHG
inventory, it will extend the reduction targets
and strategy beyond its New Zealand Scope 1
and 2 emissions and set science-based targets
for its total Comvita GHG inventory.
In future years Comvita will track GHG emissions
intensity metrics (for example, per dollar of
revenue) compared to base year.
7.3 PERFORMANCE TRACKING
ISO 14064-1: 9.3.2 h), j), k)
Comvita’s intent is to report on emissions and
removals compared to the previous reporting
period, and performance against the above
performance indicators, annually moving
forward.
The performance tracking for this year is
limited to a comparison of Comvita’s NZ GHG
Scope 1 and 2 emissions from the previous
reporting year.
COMVITA.CO.NZ
GHG INVENTORY REPORT
20
7
REDUCTION INITIATIVES AND PERFORMANCE TRACKING
REDUCTION INITIATIVES AND
PERFORMANCE TRACKING
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2017
2018
2019202020212022
tCO
2
e
Comvita Inventory50%Makino (JV)
COMVITA CARBON STOCKS
REDUCTION INITIATIVES AND
PERFORMANCE TRACKING
7.4 GHG RESERVOIRS
AND CARBON CREDITS
ISO 14064-1: 9.3.2 c); 9.3.3
Comvita’s total carbon stocks since
establishment of each Mānuka planting, and
the cumulative stocks for the years ended 2017
through 2022 are shown below. The total stocks
at FY22 are 37,094 tCO
2
(including 50% of
Makino, of which Comvita owns 1,254 tCO
2
).
CARBON STOCKS SINCE ESTABLISHMENT (tCO
2
e)
Total planted area104,489
Comvita Inventory35,840
50% of Makino JV1,254
Total Comvita owned37,094
GHG INVENTORY REPORT
21
Included in NZ Facility
Included in Australia Facility
Included in Asia Facility
Included in EMEA Facility
Included in North America Facility
Included in Investments Facility
Holding Co.
Non-trading
Comvita
New Zealand
(NZ)
Comvita
Taiwan Ltd.
Comvita
Share Scheme
Trustee Ltd.
Bee & Herbal
New Zealand Ltd.
Kyoto Forests of
New Zealand Ltd.
Comvita
Landowner Share
Scheme Trustee Ltd.
Medilee Ltd.
Makino Station
Ltd. (50%)
Betta Bees
Research Ltd.
(6.06%)
Comvita USA, Inc.
(USA)
Gan Supply
JV Ltd.
(33%)
Comvita
Holdings HK Ltd.
(Hong Kong)
Comvita
Food (China) Ltd.
(China)
Comvita
Japan KK
(Japan)
Comvita China Ltd.
(HK JV -
CBEC entity)
Comvita Korea
Co Ltd.
(Korea)
Comvita Food
(Hainan) Co. Ltd
(Hainan - China)
Green Life
(New Zealand)
Product Ltd.
Comvita HK Ltd.
Comvita Limited
Comvita Holdings
UK Ltd.
(UK)
New Zealand
Natural Foods Ltd.
Comvita
Europe BV
(Netherlands)
Comvita
UK Ltd.
Apiter S.A. (20%)
(Uruguay)
Quemidur S.A.
(Argentina)
Caravan Honey
Company (50%)
(USA)
Comvita IP
Pty Ltd.
(IP)
Comvita Health
Pty Ltd.
(Australia)
Olive Products
Australia Pty Ltd.
(Land)
Comvita Australia
Pty Ltd.
Medhoney
Pty Ltd.
Medhoney
(Europe) Ltd.
(UK)
Olive Leaf
Australia Pty Ltd.
Medibee Apiaries
Pty Ltd. (50%)
Comvita Holdings
Pty Ltd.
(Australia)
22
GHG INVENTORY REPORT
APPENDIX 1 COMVITA ORGANISATIONAL STRUCTURE
ENTITY NAMELOCATIONOWNERSHIP
OPERATIONAL
CONTROL
EMISSIONS SOURCE/
SINK?
Comvita LimitedNZ100%YesYes
Comvita New Zealand Limited NZ100%YesYes
Medibee Limited NZ100%YesNo (non-trading entity)
Comvita Taiwan Limited NZ100%YesNo (non-trading entity)
Bee and Herbal New Zealand LimitedNZ100%YesNo (non-trading entity)
Comvita Landowner Share Scheme
Trustee Limited
NZ100%YesNo (non-trading entity)
Kyoto Forests of New Zealand LimitedNZ100%YesNo (non-trading entity)
Medihoney Pty LimitedAustralia100%YesNo (non-trading entity)
Comvita Australia Pty LimitedAustralia100%YesYes
Comvita Holdings Pty LimitedAustralia100%YesNo (holding company)
Comvita Health PTY LimitedAustralia100%YesNo (non-trading entity)
Olive Products Australia Pty LimitedAustralia100%YesYes
Olive Leaf Australia Pty LimitedAustralia100%YesNo (non-trading entity)
Comvita IP Pty LimitedAustralia100%YesNo (holding company)
Comvita Food (China) Limited China100%YesYes
Comvita Food (Hainan) Company LimitedChina100%YesNo (non-trading in FY22)
Comvita Holdings HK Limited Hong Kong100%YesNo (holding company)
Comvita HK Limited Hong Kong100%YesYes
Green Life (New Zealand) Product LimitedHong Kong100%YesNo (non-trading entity)
Comvita China LimitedHong Kong100%YesYes
Comvita Japan K.K. Japan100%YesYes
Comvita Korea Co Limited Korea100%YesYes
Comvita Holdings UK Limited UK100%YesNo (holding company)
Comvita UK LimitedUK100%YesYes
New Zealand Natural Foods LimitedUK100%YesNo (non-trading entity)
Medihoney (Europe) LimitedUK100%YesNo (non-trading entity)
Comvita Europe BV Netherlands100%YesYes
Comvita USA Inc.USA100%YesYes
Share-Related
Comvita Share Scheme Trustee Limited NZ100%YesNo (holding company)
Comvita Employee Share Scheme Trust NZ100%YesNo (not operational)
Joint Ventures / Associates
Makino Station Limited NZ50%NoNo (all activities
sub-contracted; removals
are declared separately)
Apiter S.A.Uruguay20%NoYes
Quemidar S.A.Argentina20% (100%
owned by Apiter)
NoYes
Medibee Apiaries Pty LimitedAustralia50%NoYes
Caravan Honey CompanyUSA50%NoNo (no scope 1 or 2
emissions in FY22)
Betta Bees Research LimitedNZ6%NoNo (all activities
sub-contracted)
Gan Supply JV LimitedNZ33%NoNo (non-trading entity)
GHG INVENTORY REPORT
23
APPENDIX 2 ORGANISATIONAL BOUNDARIES
ISO REPORTING
SECTION
NUMBER
SECTION HEADINGPAGE
9.3.1 a)1.1Introduction to Comvita’s GHG Inventory3
9.3.1 b)3.2Person or Entity Responsible for this Report9
9.3.1 c)1.1Introduction to Comvita’s GHG Inventory3
9.3.1 d)4Organisational Boundaries10
9.3.1 e)5Reporting Boundaries11
9.3.1 f)2.3Total GHG Emissions by Greenhouse Gas8
9.3.1 g)5.2GHG Emissions, Sinks and Removals11
9.3.1 h)2.1Total GHG Emissions and Removals by Category5
9.3.1 i)5.3Emission Source Exclusions11
9.3.1 j)2.1Total GHG Emissions and Removals by Category5
9.3.1 k)3.3Base Year9
9.3.1 l)3.4Base Year Recalculation9
9.3.1 m)6.2Quantification Methodologies and Impact of Uncertainty15
9.3.1 n)6.4Changes to Approaches used Previously19
9.3.1 o)6.3GHG Emission and Removal Factors and GWP Values19
9.3.1 p)6.2Quantification Methodologies and Impact of Uncertainty15
9.3.1 q)6.2Quantification Methodologies and Impact of Uncertainty15
9.3.1 r)3.5Compliance with Standards Including ISO 14064-1:20189
9.3.1 s)3.6Verification of the GHG Inventory9
9.3.1 t)6.3GHG Emission and Removal Factors and GWP Values19
9.3.2 a)1.1Introduction to Comvita's GHG Inventory3
9.3.2 b)7.1Reduction Initiatives and Removal Enhancements20
9.3.2 c)7.4GHG Reservoirs and Carbon Credits21
9.3.2 d)1.1Introduction to Comvita’s GHG Inventory3
9.3.2 e)2.2Total GHG Emissions by Category, Activity and Facility6
9.3.2 f)2.1Total GHG Emissions and Removals by Category5
9.3.2 g)7.2Performance Indicators20
9.3.2 h)7.3Performance Tracking
20
9.3.2 i)6.1
GHG Information Management and Monitoring Procedures14
9.3.2 j)7.3Performance Tracking20
9.3.2 k)7.3Performance Tracking20
9.3.37.4GHG Reservoirs and Carbon Credits21
GHG INVENTORY REPORT
24
APPENDIX 3 REPORTING INDEX
ISO 14064-1
INDEPENDENT ASSURANCE REPORT ON COMVITA LIMITED’S
GREENHOUSE GAS INVENTORY REPORT
TO THE BOARD OF DIRECTORS OF COMVITA LIMITED
Report on Greenhouse Gas Inventory Report
We have undertaken a limited assurance engagement relating to the Greenhouse Gas Inventory Report (the
‘inventory report’) of Comvita Limited (the “Company”) and its subsidiaries (the “Group”) for the year ended 30
June 2022, comprising the emissions inventory and the explanatory notes set out on pages 3 to 24.
The inventory report provides information about the greenhouse gas emissions of the Group for the year ended 30
June 2022 and is based on historical information. This information is stated in accordance with the requirements of
International Standard ISO 14064-1 Greenhouse gases – Part 1: Specification with guidance at the organisation level
for quantification and reporting of greenhouse gas emissions and removals (‘ISO 14064-1:2018’), the Greenhouse
Gas Protocol: A Corporate Accounting and Reporting Standard (2004) (‘the GHG Protocol’), and the Corporate Value
Chain (Scope 3) Accounting and Reporting Standard (2011) (‘the Corporate Value Chain Standard’).
Board of Directors’ Responsibility
The Board of Directors are responsible for the preparation of the inventory report, in accordance with ISO 14064-
1:2018, the GHG Protocol and the Corporate Value Chain Standard. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation of an inventory report that is free
from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express a limited assurance conclusion on the inventory report based on the procedures we
have performed and the evidence we have obtained. We conducted our limited assurance engagement in
accordance with International Standard on Assurance Engagements (New Zealand) 3410: Assurance Engagements
on Greenhouse Gas Statements (‘ISAE (NZ) 3410’), issued by the New Zealand Auditing and Assurance Standards
Board. That standard requires that we plan and perform this engagement to obtain limited assurance about
whether the inventory report is free from material misstatement.
We did not evaluate the security and controls over the electronic publication of the inventory report.
A limited assurance engagement undertaken in accordance with ISAE (NZ) 3410 involves assessing the suitability in
the circumstances of the Group’s use of ISO 14064-1:2018, the GHG Protocol and the Corporate Value Chain
Standard as the basis for the preparation of the inventory report, assessing the risks of material misstatement of
the inventory report whether due to fraud or error, responding to the assessed risks as necessary in the
circumstances, and evaluating the overall presentation of the inventory report. A limited assurance engagement is
substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment
procedures, including an understanding of internal control, and the procedures performed in response to the
assessed risks.
The procedures we performed were based on our professional judgement and included enquiries, observations of
processes performed, inspection of documents, analytical procedures, evaluating the appropriateness of
quantification methods and reporting policies, and agreeing or reconciling with underlying records.
Given the circumstances of the engagement, in performing the procedures listed above we:
• Through enquiries, obtained an understanding of the Group’s control environment and information systems
relevant to emissions quantification and reporting, but did not evaluate the design of particular control
activities, obtain evidence about their implementation or test their operating effectiveness.
• Evaluated whether the Group’s methods for developing estimates are appropriate and had been consistently
applied. However, our procedures did not include testing the data on which the estimates are based or
separately developing our own estimates against which to evaluate the Group’s estimates.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had we performed
a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about
whether Group’s inventory report has been prepared, in all material respects, in accordance with ISO 14064-
1:2018, the GHG Protocol and the Corporate Value Chain Standard.
Inherent Limitations
GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to
determine emissions factors and the values needed to combine emissions of different gases.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) (‘PES-1’) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.
Our firm carries out other assignments for the Group in the areas of integrated reporting advisory, financial
advisory services, and transaction support services. These services have not impaired our independence for the
purposes of this engagement. Other than these engagements, we have no relationship with, or interests in, the
Group.
The firm applies Professional and Ethical Standard 3 (Amended): Quality Control for Firms that Perform Audits and
Reviews of Financial Statements, and Other Assurance Engagements issued by the New Zealand Auditing and
Assurance Standards Board, and accordingly maintains a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Use of Report
This report is provided solely for your exclusive use and solely for the purpose of the terms of our engagement. Our
report is not to be used for any other purpose, recited or referred to in any document, copied or made available (in
whole or in part) to any other person without our prior written express consent. We accept or assume no duty,
responsibility or liability to any other party in connection with the report or this engagement, including without
limitation, liability for negligence in relation to the opinion expressed in this report.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the Group’s inventory report for the year ended 30 June 2022 is not
prepared, in all material respects, in accordance with the requirements of ISO 14064-1:2018, the GHG Protocol and
the Corporate Value Chain Standard.
Chartered Accountants
Auckland, New Zealand
24 August 2022
This limited assurance report relates to the Greenhouse Gas Inventory Report (the ‘inventory report’) of Comvita
Limited (‘Comvita’) for the year ended 30 June 2022 included on Comvita’s website. Comvita’s Board of Directors are
responsible for the maintenance and integrity of the Comvita’s website. We have not been engaged to report on the
GHG INVENTORY REPORT
25
INDEPENDENT ASSURANCE REPORT
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had we performed
a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about
whether Group’s inventory report has been prepared, in all material respects, in accordance with ISO 14064-
1:2018, the GHG Protocol and the Corporate Value Chain Standard.
Inherent Limitations
GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to
determine emissions factors and the values needed to combine emissions of different gases.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) (‘PES-1’) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.
Our firm carries out other assignments for the Group in the areas of integrated reporting advisory, financial
advisory services, and transaction support services. These services have not impaired our independence for the
purposes of this engagement. Other than these engagements, we have no relationship with, or interests in, the
Group.
The firm applies Professional and Ethical Standard 3 (Amended): Quality Control for Firms that Perform Audits and
Reviews of Financial Statements, and Other Assurance Engagements issued by the New Zealand Auditing and
Assurance Standards Board, and accordingly maintains a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Use of Report
This report is provided solely for your exclusive use and solely for the purpose of the terms of our engagement. Our
report is not to be used for any other purpose, recited or referred to in any document, copied or made available (in
whole or in part) to any other person without our prior written express consent. We accept or assume no duty,
responsibility or liability to any other party in connection with the report or this engagement, including without
limitation, liability for negligence in relation to the opinion expressed in this report.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the Group’s inventory report for the year ended 30 June 2022 is not
prepared, in all material respects, in accordance with the requirements of ISO 14064-1:2018, the GHG Protocol and
the Corporate Value Chain Standard.
Chartered Accountants
Auckland, New Zealand
24 August 2022
This limited assurance report relates to the Greenhouse Gas Inventory Report (the ‘inventory report’) of Comvita
Limited (‘Comvita’) for the year ended 30 June 2022 included on Comvita’s website. Comvita’s Board of Directors are
responsible for the maintenance and integrity of the Comvita’s website. We have not been engaged to report on the
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had we performed
a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about
whether Group’s inventory report has been prepared, in all material respects, in accordance with ISO 14064-
1:2018, the GHG Protocol and the Corporate Value Chain Standard.
Inherent Limitations
GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to
determine emissions factors and the values needed to combine emissions of different gases.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) (‘PES-1’) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.
Our firm carries out other assignments for the Group in the areas of integrated reporting advisory, financial
advisory services, and transaction support services. These services have not impaired our independence for the
purposes of this engagement. Other than these engagements, we have no relationship with, or interests in, the
Group.
The firm applies Professional and Ethical Standard 3 (Amended): Quality Control for Firms that Perform Audits and
Reviews of Financial Statements, and Other Assurance Engagements issued by the New Zealand Auditing and
Assurance Standards Board, and accordingly maintains a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Use of Report
This report is provided solely for your exclusive use and solely for the purpose of the terms of our engagement. Our
report is not to be used for any other purpose, recited or referred to in any document, copied or made available (in
whole or in part) to any other person without our prior written express consent. We accept or assume no duty,
responsibility or liability to any other party in connection with the report or this engagement, including without
limitation, liability for negligence in relation to the opinion expressed in this report.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the Group’s inventory report for the year ended 30 June 2022 is not
prepared, in all material respects, in accordance with the requirements of ISO 14064-1:2018, the GHG Protocol and
the Corporate Value Chain Standard.
Chartered Accountants
Auckland, New Zealand
24 August 2022
This limited assurance report relates to the Greenhouse Gas Inventory Report (the ‘inventory report’) of Comvita
Limited (‘Comvita’) for the year ended 30 June 2022 included on Comvita’s website. Comvita’s Board of Directors are
responsible for the maintenance and integrity of the Comvita’s website. We have not been engaged to report on the
INDEPENDENT ASSURANCE REPORT ON COMVITA LIMITED’S
GREENHOUSE GAS INVENTORY REPORT
TO THE BOARD OF DIRECTORS OF COMVITA LIMITED
Report on Greenhouse Gas Inventory Report
We have undertaken a limited assurance engagement relating to the Greenhouse Gas Inventory Report (the
‘inventory report’) of Comvita Limited (the “Company”) and its subsidiaries (the “Group”) for the year ended 30
June 2022, comprising the emissions inventory and the explanatory notes set out on pages 3 to 24.
The inventory report provides information about the greenhouse gas emissions of the Group for the year ended 30
June 2022 and is based on historical information. This information is stated in accordance with the requirements of
International Standard ISO 14064-1 Greenhouse gases – Part 1: Specification with guidance at the organisation level
for quantification and reporting of greenhouse gas emissions and removals (‘ISO 14064-1:2018’), the Greenhouse
Gas Protocol: A Corporate Accounting and Reporting Standard (2004) (‘the GHG Protocol’), and the Corporate Value
Chain (Scope 3) Accounting and Reporting Standard (2011) (‘the Corporate Value Chain Standard’).
Board of Directors’ Responsibility
The Board of Directors are responsible for the preparation of the inventory report, in accordance with ISO 14064-
1:2018, the GHG Protocol and the Corporate Value Chain Standard. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation of an inventory report that is free
from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express a limited assurance conclusion on the inventory report based on the procedures we
have performed and the evidence we have obtained. We conducted our limited assurance engagement in
accordance with International Standard on Assurance Engagements (New Zealand) 3410: Assurance Engagements
on Greenhouse Gas Statements (‘ISAE (NZ) 3410’), issued by the New Zealand Auditing and Assurance Standards
Board. That standard requires that we plan and perform this engagement to obtain limited assurance about
whether the inventory report is free from material misstatement.
We did not evaluate the security and controls over the electronic publication of the inventory report.
A limited assurance engagement undertaken in accordance with ISAE (NZ) 3410 involves assessing the suitability in
the circumstances of the Group’s use of ISO 14064-1:2018, the GHG Protocol and the Corporate Value Chain
Standard as the basis for the preparation of the inventory report, assessing the risks of material misstatement of
the inventory report whether due to fraud or error, responding to the assessed risks as necessary in the
circumstances, and evaluating the overall presentation of the inventory report. A limited assurance engagement is
substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment
procedures, including an understanding of internal control, and the procedures performed in response to the
assessed risks.
The procedures we performed were based on our professional judgement and included enquiries, observations of
processes performed, inspection of documents, analytical procedures, evaluating the appropriateness of
quantification methods and reporting policies, and agreeing or reconciling with underlying records.
Given the circumstances of the engagement, in performing the procedures listed above we:
• Through enquiries, obtained an understanding of the Group’s control environment and information systems
relevant to emissions quantification and reporting, but did not evaluate the design of particular control
activities, obtain evidence about their implementation or test their operating effectiveness.
• Evaluated whether the Group’s methods for developing estimates are appropriate and had been consistently
applied. However, our procedures did not include testing the data on which the estimates are based or
separately developing our own estimates against which to evaluate the Group’s estimates.
GHG INVENTORY REPORT
26
INDEPENDENT ASSURANCE REPORT
integrity of the Comvita’s website. We accept no responsibility for any changes that may have occurred to the
inventory report since they were initially presented on the website. The limited assurance report refers only to the
inventory report named above. It does not provide an opinion on any other information which may have been
hyperlinked to/from the inventory report. If readers of this report are concerned with the inherent risks arising from
electronic data communication, they should refer to the published hard copy of the inventory report and related
limited assurance report dated date to confirm the information included in the inventory report presented on this
website.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had we performed
a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about
whether Group’s inventory report has been prepared, in all material respects, in accordance with ISO 14064-
1:2018, the GHG Protocol and the Corporate Value Chain Standard.
Inherent Limitations
GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to
determine emissions factors and the values needed to combine emissions of different gases.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) (‘PES-1’) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.
Our firm carries out other assignments for the Group in the areas of integrated reporting advisory, financial
advisory services, and transaction support services. These services have not impaired our independence for the
purposes of this engagement. Other than these engagements, we have no relationship with, or interests in, the
Group.
The firm applies Professional and Ethical Standard 3 (Amended): Quality Control for Firms that Perform Audits and
Reviews of Financial Statements, and Other Assurance Engagements issued by the New Zealand Auditing and
Assurance Standards Board, and accordingly maintains a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Use of Report
This report is provided solely for your exclusive use and solely for the purpose of the terms of our engagement. Our
report is not to be used for any other purpose, recited or referred to in any document, copied or made available (in
whole or in part) to any other person without our prior written express consent. We accept or assume no duty,
responsibility or liability to any other party in connection with the report or this engagement, including without
limitation, liability for negligence in relation to the opinion expressed in this report.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the Group’s inventory report for the year ended 30 June 2022 is not
prepared, in all material respects, in accordance with the requirements of ISO 14064-1:2018, the GHG Protocol and
the Corporate Value Chain Standard.
Chartered Accountants
Auckland, New Zealand
24 August 2022
This limited assurance report relates to the Greenhouse Gas Inventory Report (the ‘inventory report’) of Comvita
Limited (‘Comvita’) for the year ended 30 June 2022 included on Comvita’s website. Comvita’s Board of Directors are
responsible for the maintenance and integrity of the Comvita’s website. We have not been engaged to report on the
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had we performed
a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about
whether Group’s inventory report has been prepared, in all material respects, in accordance with ISO 14064-
1:2018, the GHG Protocol and the Corporate Value Chain Standard.
Inherent Limitations
GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to
determine emissions factors and the values needed to combine emissions of different gases.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) (‘PES-1’) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.
Our firm carries out other assignments for the Group in the areas of integrated reporting advisory, financial
advisory services, and transaction support services. These services have not impaired our independence for the
purposes of this engagement. Other than these engagements, we have no relationship with, or interests in, the
Group.
The firm applies Professional and Ethical Standard 3 (Amended): Quality Control for Firms that Perform Audits and
Reviews of Financial Statements, and Other Assurance Engagements issued by the New Zealand Auditing and
Assurance Standards Board, and accordingly maintains a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Use of Report
This report is provided solely for your exclusive use and solely for the purpose of the terms of our engagement. Our
report is not to be used for any other purpose, recited or referred to in any document, copied or made available (in
whole or in part) to any other person without our prior written express consent. We accept or assume no duty,
responsibility or liability to any other party in connection with the report or this engagement, including without
limitation, liability for negligence in relation to the opinion expressed in this report.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the Group’s inventory report for the year ended 30 June 2022 is not
prepared, in all material respects, in accordance with the requirements of ISO 14064-1:2018, the GHG Protocol and
the Corporate Value Chain Standard.
Chartered Accountants
Auckland, New Zealand
24 August 2022
This limited assurance report relates to the Greenhouse Gas Inventory Report (the ‘inventory report’) of Comvita
Limited (‘Comvita’) for the year ended 30 June 2022 included on Comvita’s website. Comvita’s Board of Directors are
responsible for the maintenance and integrity of the Comvita’s website. We have not been engaged to report on the
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had we performed
a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about
whether Group’s inventory report has been prepared, in all material respects, in accordance with ISO 14064-
1:2018, the GHG Protocol and the Corporate Value Chain Standard.
Inherent Limitations
GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to
determine emissions factors and the values needed to combine emissions of different gases.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) (‘PES-1’) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.
Our firm carries out other assignments for the Group in the areas of integrated reporting advisory, financial
advisory services, and transaction support services. These services have not impaired our independence for the
purposes of this engagement. Other than these engagements, we have no relationship with, or interests in, the
Group.
The firm applies Professional and Ethical Standard 3 (Amended): Quality Control for Firms that Perform Audits and
Reviews of Financial Statements, and Other Assurance Engagements issued by the New Zealand Auditing and
Assurance Standards Board, and accordingly maintains a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Use of Report
This report is provided solely for your exclusive use and solely for the purpose of the terms of our engagement. Our
report is not to be used for any other purpose, recited or referred to in any document, copied or made available (in
whole or in part) to any other person without our prior written express consent. We accept or assume no duty,
responsibility or liability to any other party in connection with the report or this engagement, including without
limitation, liability for negligence in relation to the opinion expressed in this report.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the Group’s inventory report for the year ended 30 June 2022 is not
prepared, in all material respects, in accordance with the requirements of ISO 14064-1:2018, the GHG Protocol and
the Corporate Value Chain Standard.
Chartered Accountants
Auckland, New Zealand
24 August 2022
This limited assurance report relates to the Greenhouse Gas Inventory Report (the ‘inventory report’) of Comvita
Limited (‘Comvita’) for the year ended 30 June 2022 included on Comvita’s website. Comvita’s Board of Directors are
responsible for the maintenance and integrity of the Comvita’s website. We have not been engaged to report on the
GHG INVENTORY REPORT
27
INDEPENDENT ASSURANCE REPORTINDEPENDENT ASSURANCE REPORT
---
Template
Distribution Notice
Updated as at 18 December 2019
Please note: all cash amounts in this form should be provided to 8 decimal places
Section 1: Issuer information
Name of issuer Comvita Limited
Financial product name/description ORDINARY SHARES
NZX ticker code CVT
ISIN (If unknown, check on NZX
website)
NZCVTE0001S7
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 30/09/2022
Ex-Date (one business day before the
Record Date)
29/09/2022
Payment date (and allotment date for
DRP)
07/10/2022
Total monies associated with the
distribution
1
$ 2,092,000
Source of distribution (for example,
retained earnings)
RETAINED EARNINGS
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.04166667
Gross taxable amount
3
$0.04166667
Total cash distribution
4
$0.03000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.00529412
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed Fully imputed - YES
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
If fully or partially imputed, please
state imputation rate as % applied
6
28%
Imputation tax credits per financial
product
$0.01166667
Resident Withholding Tax per
financial product
$0.00208333
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
Date strike price to be announced (if
not available at this time)
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
DRP strike price per financial product
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Nigel Greenwood
Contact person for this
announcement
Nigel Greenwood
Contact phone number 027 238 9522
Contact email address Nigel.greenwood@comvita.com
Date of release through MAP
25/08/2022
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.