Record Sales at Comvita

22 August 2023

Record sales at Comvita

Headlines
 Record revenue $234M +12.1% vs PCP
• +$25M and +12.1% vs PCP
• H2 revenue +17.4% vs PCP
• All market segments showed double digit revenue growth
• Greater China revenue over $100M for the first time
• Ecommerce share of revenue 41.7% +19.1% vs PCP
 Gross profit 58.0%, normalised 59.5%* in line with plan
 Operating profit $24M +18.7% vs PCP
 $33.5M EBITDA after ERP +11.4% vs PCP
 NPAT after ERP $13.1M +2.8% vs PCP
 Record investment in our brand $30.5M supporting strong revenue growth
 Net debt $53.4M in line with forecast
• Inventory $136M +3% vs PCP
 Positive operating cashflow of $8M, $29M H2
 Fully imputed final dividend of 3.0 cps declared
• Full year FY23 dividends of 5.5 cps in line with PCP

FINANCIAL RESULTS FOR THE YEAR ENDED

30 JUNE 2023
NZ $M
30 JUNE 2022
NZ $M
VARIANCE
%
Revenue 234.2 208.9 +12.1%
Gross Profit 135.8 126.0 +7.7%
Marketing Investment 30.5 28.1 +8.7%
Operating Profit 23.9 20.1 +18.7%
Operating Profit after ERP** 26.8 20.1 +33.0%
EBITDA*** after ERP 33.5 30.1 +11.4%
Net Profit after tax after ERP 13.1 12.8 +2.8%
Net Debt 53.4 25.5 +$27.8m
Fully Imputed Dividend 5.5 cps 5.5 cps -
*Normalised gross profit excluding the stock write off from Cyclone Gabrielle.
** ERP investment of $2.884M
*** EBITDA earnings before interest, tax, depreciation, and amortization


Comvita (NZX:CVT) today announced record revenue of $234M for the year ending 30 June 2023.
Revenue increased by $25M vs the prior comparative period (PCP) or 12% as all market segments
reported double digit revenue growth. The Greater China segment was particularly impressive with
revenue exceeding $100M for the first time and Comvita continuing to show market share growth.
Half two (H2) revenue increased by 17% vs PCP as momentum continued through the markets.
Operating profit increased by nearly 19% to $24M as Comvita again delivered strong gross margins
in line with its plan.

Page 2 of 5


As previously updated, for both FY23 and FY24 Comvita will invest in re-implementing its ERP system
to deliver organisational efficiency. As this is no longer able to be capitalised (SaaS), Comvita’s key
metric will be operating profit and EBITDA after ERP. Operating profit after ERP grew to $27M, an
improvement of 33% vs PCP and EBITDA after ERP improved by 11% in line with its plan. Comvita
once again increased investment in its brand with total investment increasing to $30.5M or +$2.4M
vs PCP as its business model again proved successful.

Net debt finished the year at $53M, again in line with plan and a reduction of $10M from its interim
result. The Directors were pleased to declare a fully imputed final dividend of 3.0 cps bringing the
total dividends for the year to 5.5 cps in line with PCP.

Commenting on the performance, Comvita Chairman, Brett Hewlett, said “We are absolutely
delighted to be able to report record revenue performance and earnings in line with our plan in FY23.
Despite material disruptions to the operating environment outside our direct control most notably
Covid in half one (H1) causing delays to recovery in China, material movements in forex (FX) rates,
and the terrible weather events throughout the summer affecting the contribution from our Apiary
division, we again showed true resilience in delivering this result. The Directors and I are pleased to
declare a fully imputed final dividend of 3.0 cps bringing total dividends to 5.5 cps for the full year. I
want to thank David and the team for showing such fortitude and dedication to deliver another solid
year of growth for Comvita’s shareholders, while at the same time staying focused on delivering to
our purpose and founding principles through the approved Harmony Plan. Our recent B Corp
certification is testament to the professionalism of their work.”

Group CEO and Managing Director, David Banfield, added “I am incredibly proud of the teams
performance and want to thank the whole team for their absolute focus on performance, connection
and creating their own legacy at Comvita. In addition to delivering record revenue and earnings in
line with our plan, we also completed the acquisition of HoneyWorld™, became B Corp certified,
reduced our carbon footprint, increased long-term investment in our brand and in our team and
started work to map out our 2030 plan. We remain on track to deliver our FY25 plan of c$50M
EBITDA (20%) and are excited by the many growth initiatives we are working on across the group,
though we still recognise that we have plenty of opportunity to improve further. Finally, I want to
thank discerning consumers across the world who increasingly choose Comvita as their choice for
natural wellness solutions to boost immunity and wellbeing.”

Record group revenue – strong momentum in H2
Comvita reported strong growth in FY23 with revenue increasing by $25M or 12% to $234M vs PCP.
Revenue in its market segments was particularly strong in H2 with revenue increased by 17% vs PCP.
Comvita was particularly pleased to report that all market segments reported double digit revenue
growth vs PCP, as its business model again proved successful. Ecommerce sales increased by 19% to
42% of the company’s total revenue – a new milestone for the group.

Greater China segment breaks through $100M level
Of particular note was the top and bottom line performance in the Greater China segment where
Comvita reported revenue of $109M, growth of 12% on PCP and a very strong H2 with revenue
improved by 15%. Revenue growth also converted to bottom line growth with net contribution
improved by 17% vs PCP to $26.8M.

Page 3 of 5

Gross profit in line with plan
In line with its plan Comvita delivered strong gross profit delivery with a reported GP of 58% though
a normalised GP of 59.5%, when writing back inventory that was lost in Cyclone Gabrielle. In the last
year Comvita has added further automation in its manufacturing facility to further increase
utilisation, capacity and overhead recovery.

Record investment in our brand
The Comvita long-term business model 60.15.20 forecasts GP of at least 60%, a marketing
investment to sales of 15% and an EBITDA margin of 20%. In this financial year, Comvita increased
brand Investment by $2.4M or 8.7% to $30.5M. This equates to around 13% of sales. This brand
investment is helping Comvita grow share in key markets and also tell its compelling founding story
to discerning consumers around the world.

Clinical trials and the discovery of Lepteridine™
This year Comvita announced breakthrough research on Lepteridine™, a unique natural compound
found only in Mānuka honey, for digestive health. Comvita has a strong proprietary position with
Lepteridine™ with 3 patents already granted and a further 22 patents pending to protect its research
investment. Comvita's comprehensive clinical trial programme spans digestive, skin, immunity and
metabolic health, aiming to deliver robust scientific evidence of the health benefits of our Mānuka
honey and Propolis.

Investment in ERP system to increase efficiency and performance
In FY23 Comvita launched its plan to re-implement its existing ERP system with the latest release,
refresh master data, redefine processes and create an automated scalable internal system. Due to
changes in accounting standards (SaaS) it’s not possible to capitalise these systems and process
changes, hence Comvita will expense the cost of the implementation over the next year. In FY23
Comvita invested a total of $2.9M in its ERP system and will invest a further $7M in FY24. As at the
end of FY23 Comvita remain on track to deliver the project in line with their plan and remain
confident that the project will be closed out in FY24. This project is designed to materially increase
organisational efficiency and accelerate performance as it automates todays manual tasks and is
designed to save Comvita at least 20,000 hours per year.

Double digit earnings growth after ERP
In 2020 Comvita set out to build long-term resilience and growth in the business and are encouraged
that this resilience can be evidenced in this result. Comvita was delighted to report that it delivered
an 11% improvement in EBITDA after taking into account investment in its ERP system ($2.9M) in
the year and a 33% improvement in operating profit after ERP to $26.8M.

Material year-on-year movements
The FY23 result was impacted by a number of material year-on-year movements. These included a
positive EBITDA gain of $4.5M due to insurance recoveries associated with Cyclone Gabrielle’s
impact on its Hawkes Bay facility. The company was negatively impacted year-on-year by FX
movements ($4.1M) and the extreme weather that accompanied Cyclone Gabrielle resulted in a
breakeven performance (zero contribution to group profits) from the Apiary division vs $2.9M
contribution in FY22. In addition, Comvita invested $2.9M in its ERP system as noted above.

Page 4 of 5

HoneyWorld™ acquisition
On the 5 July Comvita reported that it had completed the debt funded acquisition of HoneyWorld™
in Singapore for a consideration of S$8.5M (NZ$10M). This represents a strategic deployment of
capital in a long-term growth market in order to accelerate its revenue and earnings growth. This
addition to the Comvita group is immediately earnings accretive based on current forecasts and
helps build Comvita’s share of the market in Singapore to around 50%.

B Corp certified
Comvita has achieved B Corp certification marking a significant milestone in their commitment to
responsible and sustainable business practices and joining a global community where business is a force
for good. Comvita became the first listed business in NZ to change its constitution reflecting its
commitment to consider all stakeholders in its decision making when its shareholders voted
overwhelmingly in favour of the resolution at its 2022 Annual Shareholder Meeting (ASM). High quality
retailers globally are demanding evidence of brand integrity, especially around ESG performance claims
and B Corp provides that evidence and will open up new distribution opportunities globally. This
achievement reflects Comvita’s determination to leave the world in a better place as captured in its
market leading Harmony Plan. Certified B Corporations are leaders in the global movement for an
inclusive, equitable, and regenerative economy. Comvita joins a global community of like-minded
companies that strive to balance profit with purpose, seeking to use business as a force for good.

Net debt, inventory, cashflow and dividends
Net debt reduced by $10M since Comvita reported interim results in February 2023 and finished at
$53.4M in line with plan. The two primary causes of their temporary net debt increase were
inventory (due to global supply chain volatility) and timing of creditor payments due to a strong H2.
Net debt is currently above the Directors long-term goal, and with the addition of the debt funded
acquisition of HoneyWorld™ management and the board are reviewing opportunities to accelerate
debt reduction. Comvita are forecasting to deliver positive cashflow each half between now and the
end of FY25. In FY23 The company delivered an $8M positive cashflow with H2 especially strong at
$29M. The Directors were pleased to confirm a fully imputed final dividend of 3.0 cps bringing the
total to 5.5cps in line with PCP.

FY24 guidance
Comvita is forecasting double digit EBITDA growth in FY24 including investing $7M in ERP and $3.5M
in ongoing transformation. ERP and transformation investment is forecast to finish by June 2024.
Comvita expects to deliver strong operating cashflows and a double digit reduction in inventory.

Looking forward – premium natural health and wellness brand
Comvita are making strong progress on delivery of its focus 2025 plan that is targeted to deliver a
20% EBITDA margin of c$50M by the end of FY25. The addition of HoneyWorld™ to the Comvita
group will accelerate growth and strengthen its brand share across the APAC region, further building
on the retail capability gained from running their own stores in Hong Kong SAR and Korea. Comvita
is also excited by brand partnerships they are undertaking with other high profile global brands who
share the same discerning, quality focused consumer base.

“When we first shared our three-part plan back in 2020, we stated that we would:
1. Stabilise performance
2. Transform the organisation and;
3. Build long-term resilience and growth

Page 5 of 5

I am absolutely delighted with the progress we are making in so many areas. In particular, to deliver
record revenue of $234M, double digit growth in all market segments and an operating profit growth
of 18.7%, despite material impacts outside our direct control, gives me real confidence in our future
prospects. We continue to invest in long-term brand building activity alongside investing in our team
to enable even better performance. We still have lots of room for improvement to deliver the true
potential of Comvita, the team and I remain committed to payback the support and trust we have
received from all stakeholders and move forward in to FY24 and beyond with real excitement. Once
again, I would like to close by thanking the team for the massive effort and commitment to deliver
this strong result” concluded 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 600+ 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.

---

2023
ANNUAL REPORT
COMVITA.CO.NZ
FOR TAKE-OFF
Poised

Three years ago,
we set out our strategic plan
to stabilise performance,
transform the organisation and
achieve long-term resilience
and growth. The end of a
volatile year sees us on track
and poised for take-off.
BZU
IZN
G
1
ANNUAL REPORT
COMVITA.CO.NZ
2023

OUR STRATEGY
Pleased with Progress
Exciting things under way
on a number of fronts
04.
REPORTING
A Sweet Future
Resilient in the face
of a tough year
10.
FOCUS ON OUR MARKETS
Continuing to Win
Geographic top-line
summary
32.
OUR HARMONY PLAN
Our Commitment to Care
Sustainability, ESG, TFCD
52.
LEADERSHIP AND
GOVERNANCE
Keeping us Focused
82.
DIRECTORY
More details
Our offices
108.

Many of the goals we set for ourselves back
in 2020 are ticked off – in particular, the crucial
middle stage of our transformation programme.
This year, revenue growth was strong and earnings
were in line with our guidance and our plan. Net debt
reduced in our second half, and we delivered positive
operating cashflow for the year. Our second-half
operating cashflow was $29M. Net debt is above
our long term target and we are accelerating plans
to reduce debt over FY24. We are excited to be
undertaking clinical trials on Mānuka honey for
gut health and see this as an important stage
for the company.
Strong business performance in our key growth
market of China was matched by the continuing
rise of our ecommerce channel. It’s been exciting
to watch our customers embrace Comvita as a
premium natural health and wellness brand,
enabling us to carefully target range expansion
and product premiumisation and grow market
share as a result.
At the same time, we have continued to invest in
our forest strategy and to push towards our goal
of being carbon neutral by 2025 and net positive
by 2030.
Performance
CONTENTS
23
ANNUAL REPORT
COMVITA.CO.NZ
2023

FY23FY22FY21FY20FY19
37%49%54%60%60%
*
FY23FY22FY21FY20FY19
1116242831
FY23FY22FY21FY20FY19
4263034
Progress
PLEASED WITH
01
STRATEGY
02
STRATEGY
03
STRATEGY
Building long-term
resilience and growth
OFocus on fundamentals
ORelentless simplification
OWinning in Australia and Aotearoa
New Zealand
OPositive cashflow paying down debt
OInventory management
OUnderperforming assets
OCustomer focus
OReconnection with our cause
ONew proven harvest model
OFlat organisation structure
O$15M transformation plan
OAgile focused team
OAligned five-year plan
OUnited States and China the
engine for sustainable top-line
and bottom-line growth
OReducing breakeven point per
month from $16.2M to $13.5M
OSimplified organisation
OReduced debt <1 EBITDA
Stabilising the
organisation
Transformed
organisation
DELIVERING IS BELIEVING
——
FY23FY22FY21FY20FY19
132113101132136
Inventory ($M)
2025 target $85M**
FY23FY22FY21FY20FY19
79778997109
Greater China
revenue ($M)
Marketing investment ($M)
2025 target 15%
Ecommerce sales
2025 target 50%
FY23FY22FY21FY20FY19
23%32%34%39%42%
Revenue ($M)
FY23FY22FY21FY20FY19
196171192209234
EBITDA after ERP ($M)
2025 target c$50M
Gross profit
2025 target minimum 60%
* Gross profit excluding
stock write off from
Cyclone Gabrielle.
** Excluding HoneyWorld™
or any other acquisitions.
45
ANNUAL REPORT
COMVITA.CO.NZ
2023
OUR STRATEGY / TE RAUTAKI Ō MĀTOU

FORWARD
LOOKINGCONTINUE TO

The end of this financial year sees us on track
to deliver our 2025 EBITDA target of c$50M (20%)
that we first shared back in 2020. We are delighted
with  the progress we are making, and our confidence
is growing from meeting guidance for the last seven
consecutive reporting periods. We foresee continued
success in our ecommerce channels to the point where
they are forecast to be around 50% of sales. We are
also forecasting strong growth in China, though North
America is expected to be flat year on year. All other
segments are forecasting good top-line and bottom-
line growth.
Our 2025 business model forecasts a minimum of
60% gross profit, 15% marketing to sales and a
20% EBITDA margin. We are also forecasting positive
operating cashflow every half from now until year end
FY25. Having successfully stabilised our organisation,
our plans are to deliver careful and considered strategic
investments designed to amplify our brand strength
in our key markets.
TARGETS
EVOLVE

Successfully marketing our products into
larger markets depends on us continuing to evolve our
offering. Our target consumers are clear: well-
educated, environmentally conscious women who
believe in natural products and live in big cities across
the world. They are looking to maximise their life and
energy by living in a healthy modern way, and they are
seeking out authentic brands that reflect their values
and priorities to help them achieve that.
Our approach focuses on delivering Mānuka honey and
Propolis in convenient formats. This will enable us
to create new usage occasions for existing consumers
and to reach new consumer groups by combining our
products with other wellness solutions. The second
aspect is highlighting Comvita as a premium natural
health and wellness brand at major events and
partnering with like-minded organisations.
LIFESTYLE
67
COMVITA.CO.NZ
2023
ANNUAL REPORT
OUR STRATEGY / TE RAUTAKI Ō MĀTOU

COMVITA CLINICAL TRIALS
TO LEAD
COMMITTED

In September 2022, Comvita became the
first NZX listed organisation to change its constitution
to reflect the importance of all stakeholders when
making investment and strategic decisions. We also
shared our aim to become B Corp registered on a
international basis.
We are delighted to become B Corp certified. B Corp
Certification is an internationally recognised
designation that a business is meeting high
standards of verified performance, accountability,
and transparency on a broad number of ESG
(Environment, Social and Governance) factors.
We undertook this comprehensive exercise for our
Aotearoa New Zealand and international operations
and have now received our certification status.
High quality retailers globally are demanding evidence
of brand integrity, especially around ESG performance
claims and B Corp provides that evidence and will open
up new distribution opportunities globally.
B Corp is a natural amplification of our founding
principles, our Harmony Plan and our purpose.
We are proud to have achieved this recognition.
B CORP
READY
TO HEAL

Our clinical trial programmes are focused
on four key areas: 
• DIGESTIVE HEALTH – We are testing a proprietary
Lepteridine™ Mānuka honey treatment in a $1.4M
trial over two years in collaboration with High-
Value Nutrition (HVN). We have specific patents
already granted to protect Comvita discoveries.
• HEART AND METABOLIC HEALTH – We are part
of an HVN $4M programme looking at the health
benefits of eating a nutritious diet.
• SKIN HEALTH – We are investigating the benefits
of Mānuka honey for eczema and other
inflammatory skin conditions.
• IMMUNITY – We are examining how propolis
products support enhanced immunity.
We have created a Scientific Advisory Board of
world-leading gastroenterologists, immunity and
inflammation researchers.
89
ANNUAL REPORT
2023
OUR STRATEGY / TE RAUTAKI Ō MĀTOU
COMVITA.CO.NZ
89

$234M
RECORD GROUP REVENUE
5.5CPS
FY23 TOTAL DIVIDEND FULLY
IMPUTED IN LINE WITH PCP
$26.8M
OPERATING PROFIT AFTER ERP
+33.0% VS PCP
$234.2M
TOTAL REVENUE
+12.1% (+$25.3M) VS PCP
$30.5M
MARKETING INVESTMENT
+8.7% (+$2.4M) VS PCP
$28.8M
OPERATING CASHFLOW
HALF 2
+12%
CHINA REVENUE GROWTH
+12%
MĀNUKA HONEY REVENUE GROWTH
+27%
PROPOLIS REVENUE GROWTH
$13.1M
NPAT AFTER ERP
+2 .8% VS PCP
$33.5M
EBITDA AFTER ERP
+11.4% VS PCP
INCOME STATEMENT
For the year endedFY23
NZ$000
FY22
NZ$000
Variance
NZ$000
Variance
%
Revenue234,195208,90925,28612.1%
Gross profit135,760126,0009,7607.7%
Gross profit %*58.0%60.3%(2.3%)
Marketing30,50928,0622,4478.7%
ERP 2,88402,884
Transformation2,5302,3781526.4%
Operating profit23,92020,1493,77118.7%
Operating profit after ERP26,80420,1496,65533.0%
EBITDA after ERP33,50730,0833,42411.4%
Net profit after tax (NPAT) after ERP13,13912,7843552.8%
BALANCE SHEET
As at 30 June 2023
NZ$000
30 June 2022
NZ$000
Variance
NZ$000
Variance
%
Net debt53,38625,54427,842109.0%
Operating cashflow8,0835,360(1,008)(18.8%)
Inventory136,088132,1573,9313.0%
EPS (NZ cents)15.818.2(2.4)(13.2%)
Weighted average shares on issue69,84770,087(240)(0.3%)
* Gross profit excluding Cyclone Gabrielle stock write-off (insured event) at 59.5%.
POISED FOR TAKE-OFF
LOOKING GOOD
Results
AT A GLANCE
1011
ANNUAL REPORT
COMVITA.CO.NZ
2023
REPORTING / NGĀ PŪRONGO

You must be pleased with
the performance of the
team over the last three
years. What has worked for
you in that time, and where
have the challenges been?
BRETT: We remain on course
to deliver to our strategic plan
for FY25. It has not been easy,
but the team has demonstrated
an amazing ability to remain
focused despite a barrage of
both anticipated and unexpected
challenges. This resilience under
pressure and the commitment
to deliver has been the most
impressive aspect of the
leadership team’s performance
in the past few years. There
exists a strong can-do attitude,
even when asked to achieve the
seemingly impossible. Passion
for Comvita runs deep, not just
within the team but with so
many of our key stakeholders.
Comvita has been able to
increase market share and
grow top and bottom lines in
markets where many companies
are going backwards or even
failing altogether. I put a lot of
that down to the agility of our
in-market teams representing
around 65% of all our people
and their responses to the often
extreme changes in our global
trading. Those pressures have
We remain on track
to deliver our 2025 strategic plan.”
OUR CHAIR AND CEO
SHARE THEIR VIEWS OF OUR PROGRESS 
THIS YEAR.
BRETT HEWLETT — CHAIR
DAVID BANFIELD — CEO
included Covid restrictions,
the closure of retail stores,
a shift to ecommerce and home
delivery, disruption to supply
chains, inflationary pressure
on consumer purchasing power,
heightened geo-political risks
and the response to the climate-
related crisis – to name just
a few.
On the supply side, we
have made big advances in
operational capability and
reducing costs while, around
us, the industry is experiencing
over-capacity and, for many,
challenges to meet market-
compliant quality standards.
We’ve excelled in developing
a highly sustainable Mānuka
honey and Propolis supply chain,
built on more than 48 years of
experience and learning.
DAVID: Overall, we are
delighted with the progress
we are making in line with our
purpose and remain on track
to deliver our 2025 plan of
c$50M EBITDA (20%) (earnings
before interest, tax, depreciation
and amortisation).
When we first came together
as a team in 2020, we set out
a three-part plan to stabilise
performance, transform the
organisation and build long-
term resilience and growth.
We also said we would focus
on core categories (Mānuka
and Propolis) and core markets
(China and North America). A
significant difference between
Comvita and any competitors
is the high quality of our team
on the ground. Our operating
model reflects the primacy of
market, and we do all we can to
enable local market know-how
to guide our focus and actions to
win. This focus has enabled us to
align resources to ensure we are
closer to consumer needs, closer
to customers, faster to act and
a better partner. This is reflected
in our market share growth.
We are seeing real momentum
in our business performance
and are delighted to have now
met or exceeded guidance and
CHAIR + CEO
AN INTERVIEW
Sweet
FUTURE
A
1213
ANNUAL REPORT
COMVITA.CO.NZ
2023
REPORTING / NGĀ PŪRONGO

our plan on seven successive
occasions. We are focused on our
business model and attracting
and retaining talented people
within the organisation. This is
a key component of our success.
Naturally, the biggest challenges
for the majority of the last three
and a half years have been Covid
restrictions that have limited
our physical time together and
caused supply chain disruptions.
You’ve described this year as
one where you are poised for
take-off. What do you mean
by t hat?
BRETT: When David joined us
back in 2020, as he said earlier,
he set in place a strategy to
stabilise, transform and grow
the business. A key element of
that strategy has been to invest
in brand and building in-market
executional capability – in short,
a focus on driving demand. The
Board has remained supportive
of that strategy and, most
importantly, the commitment to
double down on our investment
in marketing (circa $30M in FY23)
even as we were confronted with
challenges and obstacles. There
is clear momentum across our
top and bottom lines, and on
that basis, the Board believes
the business is in an extremely
good position to take advantage
of further growth opportunities.
DAVID: Over the last three
and a half years, we have put
in place many improvements
to the business, our operating
model, our team capability and
our understanding of consumer
needs. We believe that FY23
was a pivotal year in setting us
up for FY24 and beyond. We’ve
seen continued market share
growth in our existing markets
through the benefit of regional
new product development. For
FY24 we look forward to the
acquisition of HoneyWorld™, the
launch of our skincare range with
Caravan and, most importantly,
new clinical trials in Aotearoa
New Zealand that, if conclusive,
will enable us to pursue unique
and protected digestive health
claims for Mānuka honey.
around the world. All of this
is underpinned by our unique
Harmony Plan, which expresses
our determination to leave the
world in a better place.
There are widespread
reports that the industry is
in trouble with a significant
number of apiary operators
leaving the industry. How is
Comvita bucking the trend?
DAVID: Hive numbers in
Aotearoa New Zealand peaked
at just under a million in 2019.
This number has now reduced
to somewhere between
500,000 and 600,000. We see
this reduction as being in the
long-term best interest of the
industry because it will enable a
focus on quality of products and
on bee welfare to come to the
fore. We pride ourselves on our
quality standards and introduced
our own bee welfare code in the
last year to ensure we are doing
everything possible to protect
our friends, the bees. In line with
our markets, the more successful
we are, the more likely it is that
more talented people (in this
case, beekeepers) will come to
develop their art with Comvita,
thus producing a virtuous circle
of commercial success and
better outcomes for bees.
How have you continued
to evolve the Board to
keep pace with the many
changes happening within
and beyond the business?
Are you satisfied that you
have the diversity of skills
and experience needed
to prudently oversee
what the business has
planned ahead?
BRETT: I am comfortable
with how the Board has been
evolving. We have in place
a process of annual review
of Board performance and
succession planning. Board
and management meet twice
per year to review long-term
strategic plans, and as part of
this process, we review the skills
Our revenue growth
this year would be
the equivalent of
a top 10 Ma−nuka
honey brand’s annual
revenue. We are
gaining market share
in key markets.”
needed by Directors to support
the company’s future ambitions.
This is always forward looking
and takes into consideration
changes both within and outside
the business.
In March this year, we farewelled
Sarah Kennedy after eight years.
We have also announced that
Luke Bunt will retire from the
Board effective 30 September
2023 after nine years. I would
like to thank both Sarah and
Luke for their outstanding
dedication to the company
through thick and thin. I will
be taking the opportunity to
thank both Sarah and Luke
more fully at this year’s Annual
Shareholders’ Meeting.
In March, we had Julia Hoare join
us as an independent Director
and member of the Audit and
Risk Committee. Julia has
pedigree experience in Aotearoa
New Zealand and Australian
governance circles. Perhaps
most relevant to Comvita
has been her almost 10 years
with a2 Milk. She will stand for
election at this year’s Annual
Shareholders’ Meeting. We are
currently working on recruiting a
new Director, and we expect this
appointment to be made by the
end of this calendar year.
DAVID: At the start of 2020, we
agreed to start transformation
within the business with the
leadership team. Then, once
that was complete, we said we
would extend transformation to
include the Board skills needed
to enable Comvita to deliver its
These achievements, alongside
the capability we have within
the organisation, create an ideal
platform for growth. We see no
structural reason why we can’t
deliver a continued gross margin
of greater than 60%, and this
margin will allow us to invest
in brand activity and continue
to tell our amazing story to
discerning consumers around
the world.
What are your forecasts for
the honey category globally
between now and 2030?
DAVID: The global honey
category is valued at
approximately US$9B today.
It’s forecast to grow to US$15B
by 2031* as consumers turn to
natural health and wellness
products generally and to
honey specifically as a natural
sweetener. While 67% forecast
growth for the core honey
category is encouraging,
we actually see additional
opportunity given the unique
properties of Mānuka honey for
medical and topical use. We are
excited by the clinical research
we have under way currently
that will further support
additional growth opportunities.
In your recent update at
the stakeholder day, you
highlighted market share
growth across a number of
key markets. What’s the key
driver for that growth?
DAVID: We are proud to be
growing our market share in
key markets around the world.
In the last three years, we have
grown our share in Mainland
China, Hong Kong SAR, Korea,
Rest of Asia, ANZ (Australia and
Aotearoa New Zealand) and
North America.
Our business model is to invest
15% of sales in marketing
activity to tell our amazing
founding story and our focus
on industry-leading quality, bee
health and scientific discovery
to discerning consumers
2030 plan and beyond. As part
of the Board, I’m pleased with
the progress we are making
and remain convinced of the
opportunity to deliver long-
term profitable growth and
shareholder value at Comvita.
Coming back to your recent
update to investors, on
your three-point plan, you
highlighted the progress
on all areas of the plan
with one red flag in your
long-term resilience and
growth. Can you give some
context please? What do you
think are the most critical
elements to enable you to
deliver your 2025 plan?
DAVID: Our growth ambition
is structured in stages of
organisational development
(crawl, walk, run). We have
also highlighted the need to
modernise our technology
infrastructure and our access
to data to enable us to iterate
at speed.
Globally, the Mānuka honey
category has less than 1%
household penetration – but
we know in our most successful
market we have achieved
nearly 4%. In order to reach
this level around the world, we
are designing specific regional
products and services to meet
local consumer needs while
staying true to our focus on
Mānuka, Propolis and products
of the hive.
* Data source Grandview Research.
Brett
Hewlett,
Chair.
1415
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2023
REPORTING / NGĀ PŪRONGO

We see experiential Comvita
stores as a crucial ingredient for
sharing the power of natural
health and wellness with
consumers around the world.
When we launched our Wellness
Lab in Auckland in March 2021,
our original intention was to roll
out our store concept globally.
However, because of Covid,
it hasn’t happened yet.
Margin improvement
has been impressive but
how sustainable is this?
How much more room
for improvement do you
see? What is the impact of
production automation on
the cost of your goods?
DAVID: Consumers globally
will only pay more for the
highest possible quality. This
demand for highest quality plays
perfectly to Comvita’s strengths.
Not only do we develop our own
Mānuka cultivars in our own
forests with our own bees, with
our own extraction, with our
own IANZ-certified laboratory
in Aotearoa New Zealand,
we then pass our carefully
crafted product to our own
team in market, who ensure it
gets to consumers in the best
possible condition. We see
further opportunity for margin
expansion as we continue to
modernise our manufacturing
capability and produce highly
relevant new products for
consumers in local markets. Our
high-margin, high-reinvestment
model is designed to help us
fund long-term research into the
clinical benefits of Mānuka honey
to heal and protect consumers
around the world.
Our transformative investment
in manufacturing capability
has delivered a 110% increase
in productivity on our site in
Paengaroa. It’s also allowed
us to move the team from
repetitive low-value work to
more-skilled value-creating
work, benefiting each team
member and the organisation
and keeping headcount
relatively flat.
to meet in-market demand,
and we expect to see a further
material reduction in inventory
by December 2023. This has a
knock-on benefit to operating
cashflow, which will see material
improvement in the first half of
FY24. Every half going forward
is forecast to deliver a positive
operating cashflow. Our target
remains to report a double
digit reduction in inventory
by June 2024. Comvita retains
its aim to deliver inventory
of c$85M by FY25 excluding
HoneyWorld™ Inventory or
any other acquisitions.
You recently announced
that you had concluded an
acquisition of HoneyWorld
™

in Singapore. Can you
share how this helps create
shareholder value and your
strategic rationale?
BRETT: It was a relatively
easy decision to support this
acquisition. Management ran
a very robust due diligence
process, and we are delighted
with the strategic fit of
HoneyWorld™ with the bonus
of retaining top talent in the
form of the vendor and founder,
Pearline Goh. This acquisition is
strongly earnings-accretive to
shareholders, with positive rate
of return on invested capital.
Demand-side acquisitions
such as this are in line with our
strategic focus to build on our
premium natural health and
wellness brand positioning.
DAVID: The acquisition of
HoneyWorld™ represents a
strategic deployment of capital
in one of the world’s most
premium, vibrant and connected
marketplaces. HoneyWorld™ is a
specialist honey retailer and, as
the market leader in Singapore,
has established significant brand
equity and leadership in the
market since 1997.
We see Singapore as a unique
market connecting Asia with
the world and the world with
Asia. With the addition of
HoneyWorld™, our market
share in Singapore will increase
to around 50%. This will further
strengthen our online and
offline presence across the
whole of Asia and connect
consumers from China and
Hong Kong SAR, which in turn
will appreciate the strength
of Comvita globally. The
acquisition will be immediately
accretive to Comvita, and
post-integration, it is expected
to deliver a 22% increase in
earnings per share (EPS).
Given your stated intention
to deliver positive operating
cashflow each half from here
to the end of 2025, do you
see further merger and
acquisition potential?
BRETT: The Board endorses
management’s position on
generating cashflow with an
‘earn before you spend’ attitude.
We are also encouraged by the
rate of organic growth of core
business, so we are not pressing
to find new acquisitions. We
remain optimistic on outlook
but cautious when it comes
to risk appetite, especially in
regards to net debt. Having said
that, we are increasingly aware
that strategically significant
and accretive acquisitions are
presenting themselves. We need
to stay alert to any strategic
opportunities during this period
of significant change.
DAVID: As we reduce inventory
to our $85M target (excluding
HoneyWorld™) in FY25, we
are forecasting to generate
significant positive operating
cashflow. This will enable us
to pay down debt but also to
consider further merger and
acquisition activity in our focus
markets and/or categories
around the world. It is important
to stress that we believe our
business model should enable
high margin, high reinvestment,
low debt and positive operating
cashflow going forward.
Let’s talk about your two
key markets. What are
the key learnings from
ongoing growth in the
China market? How far
do you think you can go in
China? Are you concerned
by the importance of China
given macro-economic and
geo-political risks? Has
North America got the same
potential as China? How do
you intend to realise that
potential? What are the key
risks and opportunities in
North A merica?
DAVID: We have been active in
the China market for over 20
years and are the strong market
leader. We have over 200 people
in our China team and consider
ourselves fully integrated in
the China market. Consumers
recognise Comvita’s quality and
continue to choose our premium
quality over anyone else.
Our revenue performance in
the Greater China segment
of $109M was 13% up on
the previous year despite
material disruption to offline
retail during the first half
and a softer than expected
The global honey
category is valued at
approximately US$9B
today. It’s forecast
to grow to US$15B
by 2031.”
return to normal sales once
the market opened up, again
highlighting our opportunity
in the future. We converted
this revenue growth to a 16%
net contribution growth, again
proving consumers are choosing
premium Comvita Mānuka honey
over everyone else.
While this is extremely
encouraging, what is even more
encouraging is the fact that we
grew revenue in Hong Kong SAR
(a market where we have the
highest household penetration)
by 20% compared to the year
before, again showing the
long-term potential to grow
household penetration around
the world.
While China is our biggest single
market, we are only scratching
the surface in terms of the
potential. Indeed, if we were
to deliver the same household
penetration (as we have in
Hong Kong SAR) in China, we
would quadruple our current
business. I remain extremely
positive about China and our
opportunities in the China
market supported by the fact
that Chinese consumers have
used honey as a medicine for
thousands of years. Our clinical
trial will enable us to prove
efficacy and further extend our
leadership. Having just returned
from the Trade Mission to China,
I was delighted to experience
first hand the warmth of the
reception and the respect for
Aotearoa New Zealand as a
country with aligned values
and high-quality products.
For North America, we do
see significant opportunities
for growth, but currently we
are under-indexing versus
the potential that we see.
In late FY23, we launched
our United States growth
plan to systematically grow
our share of sales and local
products in the United States
market. We do see some short-
term headwinds but remain
convinced of the long-term
opportunity, especially given
the fact that currently we only
have around 25 SKUs available
in this market.
While you have reduced
net debt and inventory
over the second half, the
levels remain elevated.
How do you intend to
bring down inventory
towards your 2025 target
of around $85M?
BRETT: I will let David explain the
how, but let me make the point
that, while we are in agreement
that current levels of inventory
are higher than we would like,
it has not been something that
has given rise to any great
level of concern. Carrying extra
inventory in market was in fact a
mitigation against supply chain
disruptions that plagued us all
through the majority of last year.
As demand continues to grow,
we see a clear path to reducing
inventory and therefore reducing
net debt. We are committed to
right-sizing our level of inventory
in line with demand, and our
long-term strategic goal of
delivering sustainable positive
operating cashflows remains
on track, as demonstrated by
the stronger net operating
cashflows in the second half
of FY23. You can expect to see
this positive trend continuing
through FY24 and FY25. We are
playing the long game here. Our
sustainable and quality focused
supply chain for Mānuka honey
is evolving very nicely and places
Comvita several steps ahead of
anyone else in the industry.
DAVID: In 2021, we started the
process to exit long-term supply
contracts that were not linked
to consumer demand in market.
We finally exited the last of
these contracts at the end of
2022. Up until that point, we
were contractually bound to
accept product regardless of
changes in demand. As a result,
at the end of December 2022,
our inventory peaked at $146M.
Over the course of the second
half, we have reduced this to
$136M, including the inventory
from our own Apiary operation.
Inventory profile is good and
aligns to forecast sales. For the
first half of FY24, our purchases
are limited to product we need
1617
ANNUAL REPORT
COMVITA.CO.NZ
2023
REPORTING / NGĀ PŪRONGO

You are partnering with
a number of high-profile
brands around the world.
How do these partnerships
benefit Comvita?
DAVID: We are extremely proud
that high-quality, premium
brands are increasingly
approaching us to partner with
them because of our reputation,
the quality of our products
and the power of our brand.
These partners range from
world-leading hotel chains and
restaurants to beverage and
fashion. Working with these
brands offers new uses for
our products and makes new
audiences aware of who we are
and what we offer. For example,
we have been partnering with
actress and renowned foodie
Janice Wong in Singapore.
Our partnership gives Janice
the opportunity to use the
highest quality Mānuka honey
as a key ingredient in what she
is creating, consolidates our
standing as a brand in Singapore
and key Asian markets and
offers our existing consumers
a new way to think about how
they use Comvita.
The growth of your
ecommerce strategy
continues to bolster
your omni-channel (online/
offline) approach. How do
you see that playing out?
What’s the ideal channel
balance for you?
DAVID: We forecast that the
future of retail is experiential
and that our Wellness Lab
encapsulates the multi-sensorial
experience unique to Comvita,
literally connecting consumers
to bees and the healing power
of nature. This also needs to
seamlessly integrate with our
online capability to maximise
consumer preference for
ecommerce fulfilment. While
we have stated our forecast
that our ecommerce channel will
represent 50% of our revenue by
2025, ultimately, the optimal mix
will be determined by consumers.
Our goal is to ensure that we
have the right balance between
offline, online and omni-channel
to enable consumers to shop
Comvita with ease. In addition,
we will continue to explore
emerging channels such as TikTok,
Web 3.0 and social commerce to
keep meeting consumer needs.
to be a B Corp organisation,
I have aspired to be part of a
business that recognises the
importance of all stakeholder
groups. High-quality retailers
globally are demanding evidence
of brand integrity, and B Corp
provides that evidence and
will open up new distribution
opportunities. I also believe
that B Corp principles are
enshrined in our Harmony Plan
launched in 2021 and therefore
it is only natural that we would
apply for and receive B Corp
accreditation. In September
2022, we became the first
listed business in Aotearoa
New Zealand to change our
company constitution to
reflect our multi-stakeholder
priorities. I was delighted
when our shareholders voted
overwhelmingly in favour of
this change.
Cyclone Gabrielle has
affected your operations
in Hawke’s Bay. Does the
business remain vulnerable
to extreme weather events?
How are you mitigating
that risk?
DAVID: Firstly, it’s important
to recognise the impact that
Cyclone Gabrielle has had, and
continues to have, on people in
the Hawke’s Bay region. I visited
the team a few days after the
cyclone and can only describe it
as apocalyptic. We were relieved
that all our team were safe and
well but saddened by the loss of
life and the extensive damage
that occurred.
Given the extreme nature of
the weather this year, we are
pleased that our Apiary division
again showed that the Apiary
model that we launched in
2020 delivered for the fourth
consecutive period. Naturally,
given extreme weather
events and in line with our
climate disclosure reporting
requirements, we are looking
very closely at the impact of
extreme weather events on any
new Mānuka forests that we
plant in order to help mitigate
these weather impacts.
In particular, your forestry
strategy and approach to
honey supply seem to have
remained resilient. What is
it about these strategies that
have made the difference?
DAVID: Our Mānuka forests
have so far proven to deliver
a 40% uplift in yield, 60%
increase in quality of yield and
20% reduction in cost per hive.
Due to their size, they also allow
us to have beekeepers on site
and to respond to weather or
other needs bees may have. We
are targeting to deliver 20,000
hectares of forests by 2030
from 7,500 hectares today.
Not only do our forests ensure
quality of supply for Comvita,
they also create an environment
that protects native flora and
fauna, including kiwi, long-tailed
bats and whio (blue duck).
We’ve recently completed our
first biodiversity study, which
also shows improvement in water
quality and insect populations
and provides a thriving habitat
for birds and native bats in the
first five years versus pasture.
You’ve said that you’re
targeting material financial
and environmental gains in
terms of your longer-term
Ma
-
nuka forest investment.
How will that investment
specifically benefit investors?
BRETT: What sets us apart from
anyone else in the industry has
been the sustained commitment
to and investment in our end-
to-end business model. That
starts with our in-market
capability to develop consumer
demand and then our capability
back in Aotearoa New Zealand
to evolve our supply model to
match that demand both in
quality and volume terms. I am
especially proud of the way
that our forestry and Mānuka
honey supply models have
evolved, with a balanced focus
on economic, environmental and
social sustainable best practice.
In this way, significant long-term
value is being created for all
Comvita’s stakeholders.
DAVID: As I shared earlier,
our forests deliver 40%
improvement in yield, 60%
in quality of yield and 20%
reduction in cost per hive.
These efficiencies will enable us
to continue to deliver highest-
quality product with the lowest
cost for the quality delivered.
This quality is a key foundation
for our consumer loyalty and
brand leadership. Investors will
benefit as we retain consumers
and ultimately deliver our
targeted 20% EBITDA margin.
In addition, our Mānuka forests
will be eligible for carbon credits
through their sequestration of
carbon dioxide. We will initially
use carbon credits to offset our
carbon footprint, but in the not-
too-distant future, we will have
excess credits that we are able to
use. At the moment, we are not
able to allocate any value to these
credits, but this is an evolving
regulatory process. Itʻs also
important to recognise that our
Mānuka forests involve planting
an indigenous species and
associated companion planting
for nectar diversity rather than
exotic overseas varietals.
In terms of your longer-
term climate-positive and
net-zero strategy, what
are the timeframes for
decarbonisation, circularity
and waste reduction? What
will those changes cost the
business, and what positive
impacts will they achieve?
DAVID: We will reach our
carbon-neutral and climate-
positive goals through a
combination of carbon
reduction every year in line with
verified science-based targets,
supported by sequestration from
our forests and other nature-
positive impacts. Currently, 92%
of our packaging is recyclable.
Our target for next year is
95%, and we are developing a
pathway to achieve 100% in
the near future. We are already
seeing our major customers
requiring carbon neutral and
science-based reduction
Why is B Corp status
so important to you?
What difference do you
see it making?
BRETT: Our B Corp accreditation
is a major milestone in Comvita’s
journey towards becoming
recognised as a world-class
organisation. The criteria set
by B Corp for larger, more
complex, global companies such
as Comvita are very high. It
provides significant credibility
for us as a global corporate
entity and as a consumer brand.
In fact, I believe that Aotearoa
New Zealand-based entities
that do not have a sustainability
accreditation such as B Corp
will find it increasingly difficult
to gain access to discerning
European and Asian markets.
Global capital markets are
also placing a value premium
on entities that carry a B Corp
accreditation. Congratulations
to all the team on this very
significant achievement.
Great work.
DAVID: I first heard about
B Corp back in 2007 at the
time when triple bottom line
reporting was best practice.
Ever since I read what it means
David
Banfield,
CEO.
1819
ANNUAL REPORT
COMVITA.CO.NZ
2023
REPORTING / NGĀ PŪRONGO

commitments, and we believe
that consumers will increasingly
choose brands based on their
longer-term commitment to the
environment and sustainability
more generally. We’ve captured
our commitments in our
Harmony Plan. At the same
time, we know that quality and
perceived value for money must
be inherent in our products.
Ambitious plans can only
be realised by strong leaders
and talented teams. Do you
have the people you need to
achieve the take-off you’re
poised for? Where are you
short right now, and what
plans have you put in place
to make Comvita the home
of top-tier talent?
BRETT: The Board is critically
aware that one of the great
challenges of this decade for
all organisations has been the
attraction and retention of
top talent. We are extremely
supportive of management’s
multiple initiatives to stay ahead
of the game in the competitive
world of ‘talent’ and our
shareholders should feel very
comforted by the line-up of
leaders and talented teams that
we have at Comvita.
DAVID: As Nike would say, our
constant is change and we are
continually assessing capability
within the Group to enable us to
continue to grow. We have some
incredibly talented people and
will continue to invest to retain
and develop our team. We’re also
on the lookout for new talent
that can help us win. Ultimately,
I believe the greater the talent
we attract and retain within
Comvita, the more successful
we will become – as long as
we create an environment
that gives our talented team
the opportunity to show their
true potential and impact.
We’ve made good progress but
still have a way to go to live
our principle of freedom and
accountability. This will further
differentiate Comvita as the
employer of choice.
Over the last three years,
we have also invested
significantly in the benefits
that we offer the team, including
over 91% of our team becoming
shareholders. We’ve also added
market-leading benefits such
as extending family support
policies, long-service recognition
and life and health insurance.
Our ambition remains to be
recognised as the best employer
in Aotearoa New Zealand and
around the world as voted by
our team.
What benefits do you expect
to flow through from your
core information systems
upgrade? How will they
enable you to do business
in ways that you can’t right
now? How do the objectives
align with your plans
for 2025?
DAVID: We don’t really consider
it to be an update, more of
a reimplementation of our
existing enterprise resource
planning (ERP) system with the
latest release. This significantly
derisks the project, as the team
are already familiar with the
functionality of the system.
Nevertheless, there are benefits
to come through re-engineering
processes, refreshing master
data and having integrated
and automated data flows.
Availability of timely information
will enable us to increase
pace within the organisation,
increase service to our markets
and customers and ultimately
become a major platform for
acceleration through FY24 and
beyond. Crucial for us will be
finishing implementation by
the end of FY24 to allow benefits
to flow through (without costs)
in FY25.
The push towards
positioning Comvita as a
premium natural health
and wellness brand seems
to be gathering pace,
particularly in Asia, and
yet investors continue to
fear of getting burnt or fear
of missing out. I believe we’ve
done enough over recent years
to demonstrate that investors
need not be fearful of Comvita’s
ability to perform and meet
guidance, even during uncertain
and turbulent times. Provided
that we continue to grow and
drive positive performance, it
is my firm belief that we will
see a correction by the market.
As confidence in the capital
markets and business in general
is restored, I believe that market
perception towards Comvita will
be more of a fear of missing out.
DAVID: My sole focus is on
delivery of our FY24 and FY25
budgets. That will, in turn,
result in us delivering our FY25
strategic plan of c$50M EBITDA
(20%) EBITDA, and the results
of this will be reflected in our
share price at that time.
The announcement of
Comvita Lepteridine
™

could represent a
significant development
for investors because of the
new markets that it opens
up. How did you identify
those markets and what
is the potential here in
your minds? How long will
clinical trials take – and
from there, what is the
time to market?
DAVID: Over a number of years,
we have sought to protect our
scientific discovery through
patents. The discovery of
Lepteridine™ has the potential
to prove the efficacy of unique
Comvita products for improved
gut health. Our clinical trials
are currently under way, in
Aotearoa New Zealand, and
we expect results around
December 2023. This will be
the start of an international
clinical trial programme that
could ultimately mean we
are able to make quantifiable
health claims for specific
Comvita products. These
products would be protected as
Comvita’s intellectual property.
Where are you with
guidance, and what will
be the key elements this
year to show you are
indeed taking off?
DAVID: We are forecasting
double-digit EBITDA growth in
FY24 with a weighting towards
H2. We are forecasting positive
operating cashflow and double
digit inventory reduction. Key
components will be top-line
revenue growth, gross profit of
around 59% and market share
growth through Asia-Pacific.
Performance in North America
will be strongly weighted to H2
due to a strong H1 FY23.
BRETT HEWLETT — CHAIR
DAVID BANFIELD — CEO
We have a global panel of
gastrointestinal experts
who share our excitement about
the discoveries we are making
in gut health and our potential
ability to help ameliorate
conditions that are currently
untreatable with conventional
medicine alone.
In a year where others have
chosen not to pay a dividend
citing future investment
needs, you have continued
to do so. How do you intend
to manage the capital
needs of the business
with investors’ hopes for
sustained yields?
BRETT: This year, the Board
was pleased to declare a
final dividend of 3.0 cents per
share (cps), bringing the full-
year payout to 5.5cps in line
with PCP. Investors should
see this as a reflection of our
confidence in our business
model and the underlying
performance of the business.
We are forecasting positive
operating cashflows, net of
planned capital expenditure
and dividends, that will
allow us to pay down debt.
If that outlook should change
we will review our dividend
policy at that time. We are
in the process of developing
a dividend reinvestment
programme for shareholders,
who share our excitement
about the opportunities
ahead for Comvita.
DAVID: Over the next few
years, we will become more
focused on where we deploy
capital to get the best return
for all our stakeholders. Our
focused capital model gives
us the potential to invest
in long-term value creation
but also reward and thank
shareholders (including our
team) for their support.
In particular, our forecast
positive operating cashflow
gives us more confidence to
recognise our shareholders
and continue to invest in the
right things.
pigeon-hole you in the
agri-business space. You’ve
talked for some time about
shifting that perception.
Are you seeing that market
perception shift yet – and
if not, what do you think
it will take to convince the
markets that they need to
see you in a new light?
DAVID: Around 90% of our
current earnings come from
consumers in markets. Our
consumers see us as a premium
natural health and wellness
brand. Many of our brand
partners in markets also
recognise our premium quality
and strong environmental,
social and governance (ESG)
credentials and are joining
with us to create a coalition
of the willing. In Aotearoa
New Zealand, ultimately the
only thing that will enable the
agri multiples to be replaced
with typical premium FMCG
multiples will be time. We
need to continue to prove our
resilience to weather events
and provide evidence that our
premium quality is demanded
by consumers and proven by us
continuing to drive market share
in premium segments and new
adjacent categories. This will be
the best evidence that we are
indeed a premium natural health
and wellness brand.
Are you concerned about
your current share price
and the inherent risk of
an offer to purchase that
undervalues the company?
BRETT: As Chair of the Board
and given that there was a
hostile takeover bid a few years
back, I would be lying if I did
not admit to some jitters about
the prevailing share price. The
Board holds the view that there
remains significant potential for
value creation in the medium to
long term and that such value
is not currently reflected in the
market trading price.
You will be aware of the adage
that fear drives capital markets:
2021
ANNUAL REPORT
COMVITA.CO.NZ
2023
REPORTING / NGĀ PŪRONGO

C O M V I T A
2025
Targeting
c$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
1. Stabilise performance2. Transform organisation
3. Long-term resilience
and growth
STRATEGIC PILLARS / OUR UNRELENTING FOCUS
Comvita as a
premium natural
health and
wellness brand
World-
class digital
engagement

and experience
Data as a
competitive
advantage
Science
and
quality
Organisational
simpli-cation
and effciency
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
Working in harmony
with bees and nature in
Aotearoa New Zealand to
heal and protect the world.
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.
OUR MISSION TO 2025PURPOSE
We all lead —— Connected —— We Love to Learn —— Kaitiakitanga
VALUES
PLAN ON A
PAGE TO 2025
60 : 15 : 20
Minimum 60% GP
15% Marketing to sales ratio
20% EBITDA target
COMVITA 50: 2025
2023
REPORTING / NGĀ PŪRONGO
COMVITA.CO.NZ
2322
ANNUAL REPORT

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
Top talent globally, with international FMCG expertise and empowered
teams in market to drive innovation and consumer relevance
—
Leading apiculturists and beekeepers from around the world with
a deep affinity for their craft and calling
—
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
Science, nature and quality at the heart of the Comvita difference. Highest
frequency and range of testing in industry and Aotearoa New Zealand’s only
private honey laboratory to be government accredited
—
Development of unique cultivars and patents. Nearly 50 years of scientific
discovery, embracing and evidencing the healing power of nature
—
Doing business for good. 1% reinvested for social and environmental impact
Our role as kaitiaki
(guardians) for 1.6 billion
bees and 6.8 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 circa
400 people in markets
outside Aotearoa
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
World-leading products
See pages 32-51
Committed to climate action,
rewilding and biodiversity
as Aotearoa New Zealand’s
largest private native forest
owner/manager
See pages 66-72, 74-75
Carbon neutrality
and circularity
See pages 68-71
Leading and progressive
employee value proposition,
enabling Comvita to
attract talent from
anywhere in the world
See pages 52-59, 74-76
Safe, engaged and
empowered team
See pages 52-65, 74-76
Revenue growth and
financial returns
See pages 10-11, 28-31, 32-51
Reduced emissions and waste
See pages 68-71
Driving a brighter future
for our industry
See pages 26-27, 52-55,
66-67, 72-76
Industry leadership
and investment in
our community
See pages 26-27, 52-55,
66-67, 72-76
PROUD TO BE PART
OF THE SOLUTION THROUGH THE
VALUE WE CREATE
OUR UNIQUE OUTPUTS
UNDERPINNED BY KAITIAKITANGA
(GUARDIANSHIP)
Improved health and wellbeing
for millions of consumers
See pages 26-27, 32-33, 50-51
Restoring native forests
and biodiversity balance
See pages 26-27, 68-72
Personalised consumer
and customer experience
See pages 34-51
Va lue
HOW WE CREATE
RIGHT
PRODUCTS
ROUTE TO
MARKET
RISK REDUCTION
INVESTMENT IN BRAND,
IP AND SCIENCE
CONSUMER
Working in harmony with bees and nature in Aotearoa
New Zealand to heal and protect the world
VERTICAL INTEGRATION
IMPROVED QUALITY
RIGHT MARKETS
SUBSIDIARIES
2425
ANNUAL REPORT
COMVITA.CO.NZ
2023
REPORTING / NGĀ PŪRONGO

Science
AND QUALITY LEADERSHIP
—— —— We have long been recognised as the
industry leader in Mānuka honey science. FY23
has been a watershed year as we announced
breakthrough research on Comvita Lepteridine™,
had further patents granted to protect our
research investment and completed our Comvita
Laboratories transformation programme.
There has never been a more exciting time to
be in natural health science because the need
for bold and innovative solutions to the world’s
health challenges has never been greater.
Delivering the highest-quality product at scale
backed by science provides us with a strong
science-based platform to develop the Mānuka
honey category into the future.
UNLOCKING THE POWER OF THE HIVE
TO HEAL – ADVANCING OUR PIPELINE
In FY23, we invested $5.2M in research and
development. Our pipeline of health research
programmes includes clinical trials that will
advance the delivery of robust scientific evidence
in areas where new effective treatments are
much needed.
INTELLECTUAL PROPERTY
Underpinning our industry-leading science
programme is our comprehensive intellectual
property and commercialisation strategy, securing
proprietary positioning to deliver long-term
returns. This year saw two new patents granted
and 11 new patents filed in multiple markets to
support commercialisation of our health research
programmes. In total, we now have 42 granted
patents with a further 23 pending.
STRONG PROPRIETARY POSITION
FY23 TOTAL
New patents granted242
New patents filed/pending 1123
COMPREHENSIVE CONSUMER HEALTH
SCIENCE PROGRAMME
Our clinical trial programmes are focused on
four key areas. 
Digestive health – we are testing a proprietary
Lepteridine™ Mānuka honey treatment in a
$1.4M trial over two years in collaboration
with the High-Value Nutrition Ko Ngā Kai Whai
Painga National Science Challenge (HVN) and
the University of Otago. Comvita Lepteridine™
is a unique natural compound found only in
Mānuka nectar and honey. We have patented
a specific form of the compound and are
currently testing compositions and applications
for a range of inflammatory conditions.
Heart and metabolic health – we are part of
an HVN $4M programme looking at the health
benefits of eating a nutritious diet.
Skin health – we are investigating the benefits of
Mānuka honey for eczema and other inflammatory
skin conditions.
Immunity – we are examining how propolis
products support enhanced immunity.
Our teams for these projects include a globally-
based Scientific Advisory Board made up of world-
leading gastroenterologists and expert immunity
and inflammation researchers from United States,
China, United Kingdom, Aotearoa New Zealand
and Australia.
BREAKTHROUGH DIGESTIVE
HEALTH RESEARCH
This year, we announced our breakthrough
research on Comvita Lepteridine™ for digestive
health. Discovered in collaboration with the
University of Auckland, Lepteridine™ is a
natural compound found only in Mānuka honey.
New research shows that Lepteridine™ inhibits
a key biological pathway implicated in the
formation of gastric ulcers and inflammatory
gastrointestinal disorders.
We hold a strong proprietary position with
Lepteridine™ to protect our discovery. We have
three patents already granted and a further
22 patents pending across our global markets.
Comvita has developed novel, proprietary
Lepteridine™ Mānuka honey formulations that
are currently undergoing clinical testing in the
SOOTHE clinical trial, a $1.4M multi-centre,
randomised, double-blind placebo controlled
clinical trial in collaboration with HVN and the
University of Otago. We expect to report initial
results from the trial in the second half of FY24.
Our digestive health research programme is
supported by our global Scientific Advisory Board.
COMVITA LABORATORIES
Comvita Laboratories is the most advanced
in-house Mānuka honey testing laboratory
in the world. We report over 400,000 test
results each year and are independently
accredited by International Accreditation
New Zealand (IANZ) and recognised by the
Ministry for Primary Industries (MPI). We are
the only company in our industry certified to
raise official government export documentation
using our own lab test results. IANZ is a globally
recognised laboratory standard, giving our
customers and consumers confidence that
our capability is world class.
In FY23, we invested more than $500,000 in
new automation to improve our quality further
and lift capacity. We have also developed a non-
destructive testing methodology utilising near
infrared technology that enables us to assess
the quality of our Mānuka honey in real time
and at a lower cost than traditional methods.
HIGHEST QUALITY IN THE INDUSTRY
At Comvita we pride ourselves on delivering
the highest quality natural products for our
consumers. This year, we successfully completed
an inspection by the United States Food and Drug
Administration, arguably the world’s most stringent
and widely recognised food safety authority.
OUR FOCUS ON QUALITY COMVITA
FY22 FY23
Independent certifications2324
External audits2321
Customer complaints
per 1,000 units sold0.0410.024
Non-compliance with
regulations resulting
in a fine or penalty 0 0
PROVIDING LEADERSHIP TO THE AOTEAROA
NEW ZEALAND APICULTURE INDUSTRY
We are committed to supporting the process to
secure intellectual property protection for Mānuka
honey around the world. The Legal Advisory
Committee includes David Banfield (Managing
Director and Chief Executive Officer) and Tony
Wright (Head of Industry and Regulatory Affairs).
Tony Wright continues to be a Director of Unique
Mānuka Factor Honey Association (UMFHA),
Apiculture New Zealand and Te Pitau Limited
(part of Mānuka Charitable Trust) and chairs
the Apiculture New Zealand Standards Focus
Group – the main forum for engaging with MPI
on regulatory developments.
Trevor Clarke (National Head of Apiaries) is a
member of the Apiculture New Zealand Training
and Skills Focus Group.
2627
ANNUAL REPORT
COMVITA.CO.NZ
2023
REPORTING / NGĀ PŪRONGO

Performance growth has been strong again in fy23,
with our third successive year of double-digit ebitda
growth (after erp costs
*
) despite the extreme weather
events that hit Aotearoa New Zealand this year.
Strong demand from the markets has ensured that
sales continue to grow at an encouraging pace.
Financial
REVIEW
—— —— EBITDA (after ERP costs) of $33.5M
or 14.3% of sales reflects a 11.4% improvement
over FY22 EBITDA of $30.1M. Operating profit
at $23.9M is up 18.7% over FY22, and NPAT
(after ERP costs) at $13.1M is up 2.8% over FY22.
FINANCIAL PERFORMANCE
Reported revenue for the period increased to
$234.2M, up $25.3M or 12.1% on the prior period.
This strong growth was from a number of markets,
with the Greater China region revenue up $12.1M,
North America up $3.8M and ANZ up $6.1M.
The reported gross profit percentage of 58.0% has
declined in the current year by 234bps compared
to the prior year. The decline is largely due to
inventory write-offs associated with Cyclone
Gabrielle totalling $3.7M. If the gross profit
percentage is normalised for this one-off impact,
it would be 59.5%.
Digital sales have increased by 6.3% versus prior
year to 41.7% of total sales, which favourably
impacted the gross profit percentage because
sales are margin accretive.
The increase in marketing investment has
continued with $30.5M spent in the current year,
an increase of $2.4M year on year or 13.0% of
revenue, compared to 13.4% last year. All other
operating expenses increased by $13.8M or
17.3%. The majority of this increase was sales
and distribution-related expenditure, increasing
by $7.1M or 15.0%. Transformation investment
within operating expenses for FY23 totalled
$2.5M, largely consistent with the prior-year spend
of $2.4M. In addition to this spend, there has
been a significant investment in internal digital
transformation relating to software expenses
in the current year of $2.9M, which is covered
separately in the report below. Other increases
relate to increased investment in our people,
consistent with our Harmony Plan objectives.
MATERIAL YEAR-ON-YEAR MOVEMENTS
In February 2023, the Group’s Hawke’s Bay
facility suffered extensive damage due to
Cyclone Gabrielle, a catastrophic weather event
in the North Island of Aotearoa New Zealand.
The Group moved operational facilities to
an alternative Group site where operations
continued. However, the Group’s insurance
assessors concluded that the fixed assets,
biological assets and inventory at this site
were irrecoverable. Land value is assumed
to be unimpaired.
The Group maintains a comprehensive insurance
programme that covers various risks, including
material damage, vehicle, business interruption and
general liability. The insurance proceeds received
to date for Cyclone Gabriel relate to the Group’s
material damage and vehicle policies. There is likely
to be further insurance proceeds receivable as part
of our business interruption policy.
The Cyclone Gabrielle insurance proceeds, after
inventory and asset write-offs, delivered a $4.5M
upside to FY23 EBITDA. However, it should be
noted that, against this, our Apiary operations only
broke even this year while in FY22 they delivered a
$2.9M profit. We also absorbed foreign exchange
losses of $4.6M this year compared to losses of
$592K in FY22, a negative impact of $4.1M in FY23.
The following table provides a breakdown of the
financial impact of the Cyclone Gabrielle weather
event as well as the other material movements
year on year.
CYCLONE GABRIELLE FINANCIAL IMPACTS
NZ$000
Cash proceeds received to date 5,480
Insurance proceeds receivable 5,280
Loss on disposal of property, plant
and equipment (2,548)
Inventory disposals (3,681)
Cyclone Gabrielle impact4,531
Other year-on-year movements
FX losses (4,052)
Apiary operation performance(2,900)
Net profit before tax impact(2,422)*
* Excludes ERP investment
INTERNAL DIGITAL TRANSFORMATION
In FY23, we have commenced a digital
transformation programme focusing on upgrading
our ERP system, redefining internal inefficient
processes and refreshing master data. This project
will run until June 2024 and is designed to update
and scale our internal systems and processes
and significantly increase reporting capability.
Because these changes are cloud-based, new
accounting standards mean the assets aren’t
owned and therefore will not be expensed until
June 2024. In line with market practice, these will
be normalised in the results and are also shown
separately in our income statement. The costs
related to this project totalled $2.9M in FY23.
CHIEF FINANCIAL OFFICER
REVIEW
* Refer to Internal Digital Transformation section.
2829
ANNUAL REPORT
COMVITA.CO.NZ
2023
REPORTING / NGĀ PŪRONGO

EARNINGS BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION
EBITDA at $30.6M increased 2% on the
previous year.
NZ$MFY23FY22
Profit before tax13.017.1
Add back: net finance cost5.42.2
EBIT18.419.4
Add back: depreciation
and amortisation
12.210.7
EBITDA30.630.1
ERP costs(2.9)0
EBITDA (after ERP costs)33.530.1
ECONOMIC VALUE
DISTRIBUTED AND RETAINED
In accordance with GRI 201-1, economic value
distributed was $210.0M (2022: $187.1M) while
economic value retained is $24.2M (2022: $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 $8.1M compared to $5.4M
last year. This reflected a positive operating
cashflow of $28.8M in the second half of FY23.
Note that, in line with best practice, we are now
showing interest expenses as a financing activity.
FINANCIAL POSITION
Capital expenditure
Property, plant and equipment at $72.9M
increased by $7.9M in the current year. This
increase comprised $14.9M of additions offset
by $4.1M depreciation and $2.7M net book value
of disposals, mostly related to Cyclone Gabrielle.
The significant additions were $6.1M of land
for Mānuka forests, $3.3M in development of
Mānuka forests and $1.6M on a market support
centre renovation.
Software and other intangibles at $14.3M
increased $0.7M, which was mostly the result
of an investment in an ecommerce single-source
platform totalling $2.6M, offset by amortisation
of $2.3M.
Goodwill
Goodwill of $27.4M is largely made up of
$25.6M 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 forward-looking performance of the Apiary
business unit, with Mānuka forest investments
starting to be in production.
Investments
Investments total $10.2M and have decreased
by $0.7M in the current year, largely due to an
equity accounted loss of $0.6M in relation to the
Caravan Honey Company. This 50% investment
is progressing in line with expectations, with a
talent-backed skincare range to be launched in
H1 FY24.
In January 2023, Comvita signed a capital
contribution agreement with Apiter shareholders,
agreeing to supply additional funding to Apiter
in exchange for an eventual increase in ownership
from 20% holding to 32% holding. The additional
funding is in two phases: an initial loan of
US$545,000 was made in January 2023 and
an additional US$1,445,000 will be advanced
when the share issuance procedures are
completed in Uruguay, at which point the initial
loan will also convert to equity. At reporting
date, the share issuance procedures are in their
preliminary phases and the US$1,445,000 was
a capital commitment.
On 5 July 2023, Comvita Singapore Pte Limited,
(a subsidiary of Comvita Limited) acquired the
assets of Swift Health Food (Singapore) Pte
Limited, a specialised honey retail business called
HoneyWorld™ located in Singapore. This has
been noted as a subsequent event in the financial
statements. HoneyWorld™ is the largest Mānuka
honey retailer in Singapore and represents a highly
strategic acquisition into a business that is the
market leader in core Comvita categories in one
of Asia’s premium growth markets. Combined
with its existing business in this market, Comvita’s
market share in the Mānuka honey category in
Singapore will be around 50%. Together, Comvita
and HoneyWorld™ have identified incremental
opportunities to further grow household
penetration and share of the category in this
important market over time.
This acquisition will be immediately accretive
to Comvita with a HoneyWorld™ forecast 24%
increase in return on capital employed once
integrated. For the Comvita Group, this acquisition
is forecast to deliver a 22% improvement in EPS in
FY24. HoneyWorld™ is forecasting revenue in FY24
of over SG$13M (NZ$15.85M). The acquisition is to
be debt funded.
Inventory
Inventory on hand has increased slightly by $3.9M
(3%) from the prior year to $136.0M. Inventory
balances were expected to remain high during
FY23 as previously advised. Supply optimisation
work now completed will enable material decreases
in inventory over the next two years.
Trade receivables
At $39.4M, trade receivables increased by $11.6M
on FY22. This increase was signalled to the market
in May 2023, as it was clear that June sales would
be strong. June 2023 sales were $10.8M higher
than June 2022.
Bank facilities and total net debt
Total net debt at year end, including term debt
facilities less cash on hand, was $53.4M. This has
decreased from December 2022 by $9.9M but
increased from FY22 by $27.8M. This increase was
previously advised to the market and primarily due
to elevated working capital.
In March 2023, a new $115M syndicated banking
facility agreement with Westpac bank and ANZ
bank was executed. The new facility has been
implemented with very competitive market pricing,
an extended debt maturity profile ranging from
two to four years, improved flexibility related to
our banking covenant structure and future access
to sustainability-linked loans.
The company has complied with all banking
covenants during the period.
Trade and other payables
Trade and other payables decreased by $3.5M to
$34.3M, primarily due to decreased trade creditors
related to the timing of honey purchases.
EBITDA (after ERP costs) of $33.5M or 14.3%
of sales reflects a 11.4% improvement over FY22
EBITDA of $30.1M. Operating profit at $23.9M is up
18.7% over FY22 and NPAT (after ERP costs)
at $13.1M is up 2.8% over FY22.”
NIGEL GREENWOOD, CFO
FOREIGN EXCHANGE
A foreign exchange loss of $4.6M has been
recognised in FY23 compared to a loss of $0.6M
in the prior year. This represents an increased
expense of $4.0M, which has been substantially
offset within sales and gross profit. The significant
increase in recoded foreign exchange losses was
caused by a very low New Zealand dollar over most
of FY23. While this has had a material impact
this year, we have taken out forward exchange
cover at these lower rates in our future reporting
periods in line with our treasury management
policy. 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 was $0.8M, with
$0.6M of this being our share of expenses from
the new investment in Caravan Honey Company.
This compares to a loss last year of $0.2M.
EARNINGS PER SHARE
Reported EPS for FY23 was 15.84c and diluted
earnings per share of 15.66c. This compares to
18.24cps and 18.13cps respectively last year.
DIVIDEND
With the continued sustainable profitable growth,
the Board has approved a fully imputed final
dividend of 3.0 cps. This brings the total dividends
paid for FY23 to 5.5 cps in line with FY22.
3031
ANNUAL REPORT
COMVITA.CO.NZ
2023
REPORTING / NGĀ PŪRONGO

+18%
REST OF ASIA
REVENUE GROWTH
NORTH AMERICA REVENUE
GROW TH
+12%
TOTAL REVENUE GROWTH
+12%
NPS
+7.1% VS PCP**
80
GREATER CHINA REVENUE
GROW TH
+13%
+14%
EUROPE, MIDDLE EAST AND
AFRICA (EMEA)
REVENUE GROWTH
+17%
ANZ
REVENUE GROWTH
—— —— All market segments delivered double-digit revenue growth.
Our consumer NPS score of 80 is classified as a world-class mark*.

As a working mom, I have to
balance my family and career.
Comvita Mānuka honey helps
me to maintain gastrointestinal
health so that I can have a
better balance.”
Tmall consumer,
China
Greater China
Total revenue in Greater China
increased by 13% with strong
second-half and online performance
offsetting a slower than expected
return to normal consumption in
offline channels.

When it comes to Mānuka
honey, we only trust Comvita.
Been using for over 6–7 years
now and never disappointed
in the quality.”
United States customer,
Facebook post
North America
North American revenue increased
by 12% year on year, supported
by good online sales. Comvita
is the fastest-growing Mānuka
brand* in the natural channel in
the North American market.

Love this product [Comvita
Olive Leaf Extract]! I dose daily
and have never been healthier.
Thanks Comvita!”
Matthew, Australia
Australia and Aotearoa 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 revenue improving
by 18% year on year with strong
performance in both domestic and
daigou channels.
UMF™ 20+ is our must-have
home remedy.
It has helped tremendously
with cough and flu since
2017. It is the greatest health
investment I have made
throughout these years!
Consumer, Singapore
South East Asia
Revenue in South East Asia (SEA)
increased by 61% year on year as
we saw strong demand and sales
through key retail channels. Comvita
brand endorsement and quality focus
has enabled further premiumisation
for discerning consumers.
Aiming
TO WIN
* Perceptive.co.nz NPS scoring guidelines.
** NPS recalculated for FY22 to FY23 for formula consistency.
* Fastest growing brand over US$500K (source: SPINS).
3233
ANNUAL REPORT
COMVITA.CO.NZ
2023
FOCUS ON OUR MARKETS / AROTAHI I NGĀ RATONGA PAKIHI

Our unique model includes positioning teams
in our core markets. Here’s what they achieved
t h i s ye a r.
—— —— Our team now totals 630,
of which 399 are in seven markets
outside Aotearoa New Zealand.
CHINA
163
HONG KONG
SAR
77
KOREA
35
JAPAN
8
EMEA
7
29
AUSTRALIA
231
AOTEAROA
NEW ZEALAND
74
SEA/SINGAPORE*
9
UNITED
STATES
+27%
PROPOLIS
+12%
MĀNUKA HONEY
+19%
UMF™ 20+
* SEA/Singapore numbers include team numbers from our recent acquisition of HoneyWorld™ (71 team members), which took place on 5 July 2023.
OVERVIEW
World
ACROSS OUR
FY22 segment revenue share
47%
6%
2%
17%
13%
15%
FY23 segment revenue share
46%
5%
3%
17%
14%
15%
Greater
China
North
America
Rest of
Asia
ANZEMEAOther
FY23 sales by category
UMF™
honey

Honey
PropolisOliveMedihoneyLozengesOther
69%
4%
7%
7%
3%
5%
5%
FY22 sales by category
69%
4%
6%
7%
4%
5%
5%
3435
ANNUAL REPORT
COMVITA.CO.NZ
2023
FOCUS ON OUR MARKETS / AROTAHI I NGĀ RATONGA PAKIHI

56%
75%
+ 19%
39%
60%
+ 21%
KOREA
47%
60%
+ 13%
REST
HONG KONG
MAINLAND
7%
25%
+ 18%
OF ASIA
SAR
CHINA
ANZ
23%
46%
+ 23%
NORTH
21%
25%
+ 4%
AMERICA
GROWING
MARKET SHARE
MARKET
SHARE GROWTH
20202022

Throughout the year, we have continued
to consolidate our leadership position and
experienced strong market share growth in the
Mānuka honey category across our key markets.
Our investment in building talented sales,
marketing and operational teams across our
key markets has paid off. Our core philosophy
of understanding and embracing the primacy
of our markets means that we are closer to
consumer needs, closer to changing customer
requirements and faster to act. Our teams’
expertise and commitment have been pivotal
in driving consumer engagement and loyalty,
supported by our Customer Support Centre
team in Aotearoa New Zealand.
In line with our business model, we invested
over $30M in brand-building activities.
This strategic investment has allowed us to
effectively communicate our brand’s unique
value proposition and tell our incredible
founding story to a broader audience.
We delivered world-class quality for our consumers
in market at 0.02 complaints per 1,000 units sold.
By consistently delivering superior quality products,
we continue to build trust and loyalty amongst our
consumers, underpinning our long-term success in
these critical markets.
Looking forward to FY24, we will continue to
develop local new product solutions for different
usage occasions, enabling Comvita to be an even
bigger part of our consumers’ everyday lives.
Revenue
growth
FY23 vs PCP
Greater China
Net
contribution
growth
FY23 vs PCP
North America
ANZ
Rest of Asia
EMEA
Premium quality and positioning
of Comvita in China is integral to
continued market share growth.”
ANDY CHEN, REGIONAL CEO, APAC
+12.0%+5.4%
+14.4%+627.7%
+12.5%
+16.8%
+17.5%+3.2%
+16.2%+25.9%
3637
ANNUAL REPORT
COMVITA.CO.NZ
2023
FOCUS ON OUR MARKETS / AROTAHI I NGĀ RATONGA PAKIHI

LOOKING FORWARD ————
FY24 will see continued consumer investment and regional new product
development focused on our premium natural health and wellness brand
transformation.
With borders reopened, our strong team on the ground will further
strengthen our brand equity across Hong Kong SAR and Mainland China
with updated brand collateral and experiential features integrated
in our stores.
GROW TOTAL ADDRESSABLE MARKETBUILD EXPERIENCE AND AFFINITY
01. A pop-up “Nature Heals” in
Tangning Bookstore – a historical
building in Shanghai.
02. Launch of local new product –
Comvita Night honey.
03. Launch of the upgraded version of
Comvita Collagen Drink.
04. Collaboration with Snow 51 for
“New” Snow Season.
05. China International Import
Expo (CIIE) 2022.
GREATER CHINA
Reported currency basis
This year
FY23
NZ$000
Last year
FY22
NZ$000
vs

last year
NZ$000
vs

last year
%
Sales109,00596,92412,08112.5%
Net contribution26,81322,9583,85516.8%
Net contribution %24.6%23.7%0.9%

Greater China is the biggest market for
Comvita with a total addressable market of 8B RMB
(NZ$1.8B). With household penetration at less than
1%, there is material room for growth.
Despite ongoing disruptions in H1 due to Covid
restrictions, revenue for the full year increased
to $109M +12.5% vs PCP with revenue growth
translating to net contribution and market share
growth in this crucial market. Net contribution
grew by 16.8% to 24.6% of sales in FY23.
Our premium natural health and wellness brand
transformation was further supported by exciting
regional new product initiatives and underpinned
by premium brand partnerships.
In consumer communications, we initiated a series
of innovative marketing and co-branding activities
to enhance our brand awareness.
Our record $109M revenue milestone paves the
way for our greater ambition, which is captured
in our Comvita 50 strategic plan.
Greater China ecommerce performance
FY22 vs FY23 % difference
01. 03.
02.
04.
05.
GREATER CHINA
D2C VS PCP
+17%
MARKETPLACE
VS PCP
+4%
D2C REPEAT
PURCHASE RATE
+1,0 45BPS
3839
ANNUAL REPORT
COMVITA.CO.NZ
2023
FOCUS ON OUR MARKETS / AROTAHI I NGĀ RATONGA PAKIHI

LOOKING FORWARD ————
We aim to broaden our product offering in North America in line with
other regions across the Group through a digital-first strategy. We will
focus on bringing new users to the category, extending our ecommerce
insights into growth channels and driving omni-channel and category
performance. North American performance is expected to be flat in FY24.
GROW MĀNUKA SHARE OF TOTAL ADDRESSABLE MARKETBROADEN PROPOSITION
01. World Bee Month 2023 where we
rescued over 40 million bees in the
US via beekeeper partners.
02. New squeeze bottle launch
included Kids Yummy Honey (shown),
MGO 50+ and UMF™ 5+ Mānuka honey.
03. UMF™ Mānuka honey lifestyle
shoot, connecting with American
consumers.
04. Comvita range of retail-focused
Mānuka honey and multifloral
Mānuka honey.
05. Jordan Mazur, MS, RD professional
sports dietitian, uses Comvita Mānuka
for a pre-workout energy boost.
NORTH AMERICA
Reported currency basis
This year
FY23
NZ$000
Last year
FY22
NZ$000
vs

last year
NZ$000
vs

last year
%
Sales35,60831,7933,81512.0%
Net contribution8,8688,4144545.4%
Net contribution %24.9%26.5%(1.6%)

North America has a total addressable
market of $1.3B with household penetration for
Mānuka estimated to be below 1%. This illustrates
the size of the North American opportunity, where
Comvita has been rapidly growing at a compound
annual growth rate of 28% since FY19.
For FY23, we are pleased to report continued
top-line and bottom-line growth versus PCP, with
market share gains of around +400bps. We have
successfully delivered net contribution gains of
+5%, while continuing to invest in our brand and
commercial activities in market.
Our revenue increase to NZ$35.6M represents
an increase of +12% versus PCP. Our strategic
emphasis is on channel balance and portfolio
expansion through a digital-first approach.
Ecommerce now represents 31% of United
States sales. Total ecommerce revenues were up by
22% versus PCP with +40% sales growth through
our integrated direct-to-consumer (D2C) platform
and +17% growth across ecommerce marketplaces.
We have over-delivered with our D2C strategy in
a highly competitive landscape, building long-term
02.
01.
05.
03.
04.
NORTH AMERICA
North America ecommerce performance
FY22 vs FY23 % difference
value through database growth and increased
frequency of use.
• Overall growth in direct customers +51%.
• Registered users +17%.
• Repeat purchase rates (RPR%) +1,631bps.
• Lifetime value +17% versus PCP.
Our premium natural health and wellness brand
offering was extended in FY23 with the launch of
11 new products, with the long-term aim to drive
brand availability across a diversified customer and
channel mix. We gained nearly 2,000 new points
of distribution and achieved double-digit growth in
our natural and grocery sell-through rates, proudly
maintaining our position as the fastest-growing
Mānuka brand in the United States natural channel
at +58% versus PCP.
As part of our World Bee Month campaign in
2023, Comvita was proud to fund the rescue of
more than 40 million bees, saving them from
extermination, through a nationwide programme
with local beekeepers.
D2C VS PCP
+40%
MARKETPLACE
VS PCP
+17%
NEW D2C
CUSTOMERS
+42%
4041
ANNUAL REPORT
COMVITA.CO.NZ
2023
FOCUS ON OUR MARKETS / AROTAHI I NGĀ RATONGA PAKIHI

01. Giapo Ice Cream collaboration.02. Honeypops winter wellness.03. William Mordido, Bocuse d’Or
Aotearoa New Zealand collaboration.
04. Fashion forward collaboration
with international designer Claudia Li.
05. Phoenix in-store opening.
ANZ
Reported currency basis
This year

FY23
NZ$000
Last year
FY22

NZ$000
vs

last year
NZ$000
vs

last year
%
Sales40,77034,6966,07417.5%
Net contribution11,57311,2113623.2%
Net contribution %28.4%32.3%(3.9%)

We are delighted to report strong revenue
growth in ANZ with growth delivered through both
domestic and daigou channels.
We continue to invest in our brand to amplify and
complement activity in Greater China. Through
this increased investment, we were able to deliver
3% increase in net contribution and undertake
significant long-term brand-building activity.
Our focus on local consumer reconnection and
transformation to a premium natural health and
wellness brand is paying dividends. The ANZ region
delivers a strong net contribution margin of 28%.
Our ecommerce channel has good momentum,
with a +15% increase in D2C customers versus PCP
for Aotearoa New Zealand and +14% for Australia.
AOV is +36% in Aotearoa New Zealand and +28% in
Australia versus PCP.
04.
02.
05.
03.
01.
LOOKING FORWARD ————
Further upgrade of our brand expression at point of purchase (POP)
and enhanced regional partnerships will enable differentiation and
amplification of our world-leading Comvita brand value proposition
and ESG credentials.
GROW CATEGORYCHANNEL DIVERSIFICATIONWIN AT POP
AUSTRALIA + AOTEAROA NEW ZEALAND
ANZ ecommerce performance
FY22 vs FY23 % difference
D2C VS PCP
+13%
MARKETPLACE
VS PCP
-19%
D2C CUSTOMERS
+14%
4243
ANNUAL REPORT
COMVITA.CO.NZ
2023
FOCUS ON OUR MARKETS / AROTAHI I NGĀ RATONGA PAKIHI

LOOKING FORWARD ————
We will drive household penetration in focus product categories with
a refreshed go to market model and distribution partnerships. D2C is
now back fully under our management with consequential revenue and
contribution benefits, and our ecommerce presence will be enhanced
through online marketplace expansion in Europe.
DISTRIBUTION MODEL CHANNEL FOCUS TEST AND LEARN
LOOKING FORWARD ————
In SEA, we will leverage the momentum from our strategic acquisition
of HoneyWorld™ to scale distribution and product development for
consumers in this vital, connecting region.
GROW CATEGORYCHANNEL DIVERSIFICATIONINTEGRATE HONEYWORLD™
REST OF ASIA
Reported currency basis
This year
FY23
NZ$000
Last year

FY22
NZ$000
vs
last year
NZ$000
vs
tast year
%
Sales31,77127,3374,43416.2%
Net contribution8,2916,5851,70625.9%
Net contribution %26.1%24.1%2.0%

We are proud to deliver revenue growth of
+16% vs PCP and net contribution growth of 26%
in this dynamic region.
Our talented teams on the ground strengthened
our distribution and delivered new long-term
customer partnerships, which have set us up
for long-term growth.
With the benefit of ASEAN economic development,
Asia’s middle class is growing faster than ever,
and the future looks very encouraging.
We are delighted to welcome HoneyWorld™
to the Comvita family, further strengthening
our performance in the Singapore market.
EMEA
Reported currency basisFull year

This year
FY23
NZ$000
Last year

FY22
NZ$000
vs
last year
NZ$000
vs
last year
%
Sales5,8625,12473814.4%
Net contribution60483521627.7%
Net contribution %10.3%1.6%8.7%

It’s encouraging to deliver double-digit
top-line and bottom-line growth in EMEA.
However this segment remains sub-scale and
materially breakeven.
Revenue grew by 14.4% to NZ$5.9M and net
contribution to NZ$604K or 623.3% of revenue.
During this period, we added talent to the United
Kingdom team and have a very clear focus on
channels and product categories where we see
opportunities for growth.
Rest of Asia ecommerce performance
FY22 vs FY23 % difference
D2C VS PCP
-15%*
MARKETPLACE
VS PCP
+5%
D2C TRANSACTIONS
VS PCP
+13%
* Japan migrated to new platform February 2023.
EMEA (United Kingdom and Germany) ecommerce performance
FY22 vs FY23 % difference
D2C VS PCP
+5%*
MARKETPLACE
VS PCP
+18%
EMAIL
SUBSCRIPTIONS VS
PCP
+83%
* Migrated to new platform March 2023.
Our online business was disrupted during FY23,
though this is now resolved. Our United Kingdom
and Germany D2C business was successfully
transitioned onto Comvita’s integrated ecommerce
platform, delivering an uplift of +83% in customer
acquisitions for the region and +10% in revenue
growth for all ecommerce for FY23. AOV is +12%
in the United Kingdom and +8% in Germany
versus PCP.
4445
ANNUAL REPORT
COMVITA.CO.NZ
2023
FOCUS ON OUR MARKETS / AROTAHI I NGĀ RATONGA PAKIHI

This strategic SG$8.5M (NZ$10M)
acquisition has enabled us to join forces with
a business that is the market leader in core
Comvita categories in one of Asia’s premium
growth markets. Combined, our market share
in the Mānuka honey category in Singapore
will be around 50%.
HoneyWorld™ was founded in 1997 by Pearline Goh
to introduce healthy and nutritional foodstuffs
and operates 18 outlets in the Singapore market
with a loyal consumer following. We will supply
HoneyWorld™ brands in store as well as growing
our own Comvita Mānuka brand and range.
We are delighted Pearline has also agreed to
become part of the Comvita whānau and to
share her expertise in the Singaporean and wider
Asian region markets. Singapore is also a crucial
market connecting Asia with the world and the
world with Asia.
This acquisition will be immediately accretive
to Comvita, with a forecast 25% increase
in the HoneyWorld™ return on capital employed
once integrated. For the Comvita Group,
this acquisition is forecast to deliver a 22%
improvement in earnings per share. HoneyWorld™
is forecasting revenue in FY24 of over SG$13M
(NZ$15M). The acquisition is debt funded.
HONEYWORLD™
ACQUISITION
50%
MARKET SHARE
On 4 July 2023, we were delighted to welcome
HoneyWorld™, the largest honey retailer in
Singapore, into our Group.
SINGAPORE
Population:
5.454M
Gross domestic product:
$
397B
Gross national income per capita:
$
54,530
25%
INCREASE IN
CAPITAL RETURN
$15M
FY24 REVENUE
FORECAST
INDIAN
OCEAN
SOUTH
CHINA
SEA
4647
ANNUAL REPORT
COMVITA.CO.NZ
2023
FOCUS ON OUR MARKETS / AROTAHI I NGĀ RATONGA PAKIHI

Online revenue now accounts for 42% of all
Comvita sales, circa NZ$98M.
The ecommerce landscape of the last 12 months
was highly competitive, with in-store shopping
more prevalent than previous periods that were
restricted by lockdowns. Comvita doubled down
on customer acquisition and driving overall
consumption, delivering a lift in revenue and margin
and strongly over-indexing in D2C channels.
• Total ecommerce revenue +19.1% versus PCP,
at accretive margins.
• Ecommerce share of net Group revenue
to 41.7% +270bps versus PCP.
• NPS
*
80% +7.1% versus PCP.
FOCUS MARKET GROWTH
Despite challenging market headwinds, we
continued our growth momentum in Mainland
China, with ecommerce revenue now representing
74% of all sales. Our Comvita WeChat store was
launched in 2022 and we delivered another year of
record-breaking results during key sales festivals
such as 618, outperforming all competitors.
Comvita’s online channels in North America
increased by 22%, with the ecommerce share
to 31% (+200bps). We expanded our online
range by more than a third, generating a
1,631bps improvement in repeat purchase rates
on Comvita.com, where registered user sales
grew by a healthy 56%. Our focus Amazon Seller
strategy delivered nearly +80% growth compared
to FY22.
TRANSFORMATION
ECOMMERCE
LOOKING FORWARD ————
We will focus on consumer acquisition and retention and deepen our
consumer insights through extended test and learn, driving innovation via
fast feedback loops.

NEW USERSFREQUENCY OF USELIFETIME VALUE AND LOYALTY
01. Fun and engaging
National Olive Day
ecommerce campaign
in ANZ
02. Comvita has
consolidated a ‘single
source of truth’ for more
than 75% of D2C revenue
and 39% of our total
global database.
03. Comvita USA generated
record-breaking revenue
through our D2C Valentine’s
Day campaign 2023.
04. In China, Comvita was
the highest international
brand to make Tmall’s Top
Ten (total healthy food
category) in 2023.
02.
* NPS recalculated for FY22 toFY23 for formula consistency.* AOV based on Australia, NZ and US only.
03.
GREATER CHINA
ECOMMERCE
SHARE
61%
Revenue from ecommerce
ECOMMERCE
GROWTH
+17% D2C
+4% Marketplace
NORTH AMERICA
ECOMMERCE
SHARE
31%
Revenue from ecommerce
ECOMMERCE
GROWTH
+40% D2C
+17% Marketplace
EMEA
ECOMMERCE
SHARE
33%
Revenue from ecommerce
ECOMMERCE
GROWTH
+5% D2C (from March 2023)
+18% Marketplace
42%
TOTAL ECOMMERCE
SHARE
+28%
REGISTERED USERS
5X
CHAMPION USERS
+1,568BPS
REPEAT PURCHASE RATES (RPR%)
+1,242BPS*
AVERAGE ORDER VALUES
01.
04.
4849
ANNUAL REPORT
COMVITA.CO.NZ
2023
FOCUS ON OUR MARKETS / AROTAHI I NGĀ RATONGA PAKIHI

PREPARING
FOR TAKE-OFF
COMVITA PROPOLIS

The wellness industry has experienced
strong growth in recent years, with consumers
increasingly seeking natural supplements to help
build their immunity. The impact of Covid has
amplified this trend, prompting consumers to
proactively focus on strengthening their immunity.
Many are now looking for proven plant-based,
natural health products.
Within wellness, the cold, flu and immunity
category is valued at over US$12.0B annually
and projected to grow at 6.5% per year.
While traditional remedies like Propolis have been
used for centuries to enhance immunity, consumer
awareness of its benefits has been relatively low
compared to other immunity products. Comvita is
a global leader in Propolis. Consumer research has
shown the untapped potential for Propolis and the
Comvita brand to premiumise the global market
and increase penetration with new consumers.
BENEFIT-LED IMMUNE BEE™ PROPOLIS
Our consumer-centric approach led to the creation
of the Immune Bee™ Propolis range. The new
packaging design symbolises the essence of bee
Propolis and its natural origins. The front of pack
reinforces the product’s immunity benefits.
By choosing to use rPET recycled plastic jars for all
the products in the range, we were able to prevent
20MT of additional plastic waste.
POSITIVE SIGNS
The relaunch of the Immune Bee™ Propolis range
in the second half of FY23 is encouraging, with our
Propolis products revenue growing 26.5% during
FY23. Even so, more work is still to be done to
realise the true potential of this category.
27%
GROWTH IN FY23
20MT
OF PLASTIC
DESIGNED OUT
RECYCLABLE AND
CIRCULAR rPET
JAR AND LID
NEW
VEGETABLE
CAPSULE
LOOKING FORWARD ————
We are focused on expanding market distribution and delivering an
innovative pipeline of products to realise the potential of the Propolis
category to help consumers build immunity.
GROW HOUSEHOLD PENETRATION BUILD RANGE
Bee Propolis originates from a plant’s defence
system and contains over 300 powerful
natural bioactive compounds that support
immunity, health and wellbeing.
FOR TAKE-OFF
Poised
5051
ANNUAL REPORT
COMVITA.CO.NZ
2023
FOCUS ON OUR MARKETS / AROTAHI I NGĀ RATONGA PAKIHI

Comvita is driven by a profound
purpose: working in harmony with bees and
nature in Aotearoa New Zealand to heal and
protect the world. Our Harmony Plan is both
a roadmap and a commitment to perpetuate
positive impact for people, bees and planet.
For us, it captures our determination to
leave the world in a better place.
When Comvita amended its company constitution
in 2022 to ensure all stakeholders were considered
in decision making, we doubled down on our previous
commitment to convert purpose into action.
We were delighted to receive B Corp certification
this year, confirming Comvita as a purpose-driven
organisation committed to the highest standards
of transparency and accountability for social and
environmental impact.
Power
OF HARMONY
THE
We also celebrated a number of material Harmony
Plan outcomes thought the last year:
• Partnership agreement signed with Olé (one of
China’s largest premium supermarket chains)
premised on a shared commitment to long-term
ESG initiatives and outcomes.
• More than NZ$300,000 donated as part of
our 1% EBITDA commitment to initiatives in
Aotearoa New Zealand, Australia, United States,
Korea and Africa.
• 91%* of global Comvita team now shareholders
and part-owners in Comvita.
• Bee Welfare Code launched and adopted
across all Comvita Apiary branches.
• More than 44 million bees rescued
from extermination.
• Launch of our Time to Heal programme for
our global team. With 1,008 employee hours
volunteered in support of environmental and
community causes.
E reretau ana, e mahi ngātahi ana
mātou ko ngā pi me te taiao i Aotearoa, hei whakaora, hei manaaki
āno i te ao tūroa.
Our core belief is that
we can only be as healthy as the natural ecosystems
that sustain us, as true healing power only comes
from working in harmony with nature. We’ve done
this for almost 50 years.”
* Global team as shareholders or bonus scheme equivalent
5253
ANNUAL REPORT
COMVITA.CO.NZ
2023
SUSTAINABILITY – ENVIRONMENTAL, SOCIAL, GOVERNANCE /
KAITIAKITANGA – TAIAO, PĀPORI, MANA WHAKAHAERE

Comvita was founded with long-term
views around balancing purpose and profit.
Becoming a certified B Corp company is in
line with those founding principles, and we
are truly proud of this achievement.
Since our establishment, Comvita has been
grounded in ethical, social, 'founding' ethos and
environmental ideals. In many ways, our ethos
was ahead of its time – forged in an era when
climate change had yet to enter the global
narrative. Nearly five decades later, we are
the leaders in this space.
Comvita was the first publicly listed company
in Aotearoa New Zealand to specifically change
its constitution to ensure the needs of all
stakeholders are considered in decision making
and governance The B Corp certification is a
powerful commitment to deliver performance
against the highest global standards, providing
rigorous independent verification across the
five impact areas of our 13 subsidiary operations
around the world (employees, customers, the
communities we serve, governance and, of course,
the environment). By providing a transparent
360-degree view of our global stewardship and
action, we are further setting ourselves apart –
and raising the benchmark for others to follow.
We know our customers recognise the importance
of the B Corp certification and believe this
achievement will enable us to accelerate
distribution growth around the world.
We are taking a long-term view, knowing B Corp
supports our sustainability credentials and
enhances our reputation, financial performance
and value in the future. Taking the lead on social
and environmental performance is not only what
our people, planet and community needs – it’s also
good for business.
SUSTAINABILITY
CERTIFIED
B CORP
“B Lab is the nonprofit network transforming the global economy to
benefit all people, communities, and the planet. There’s no Planet B.
Our international network of organizations leads economic systems
change to support our collective vision of an inclusive, equitable, and
regenerative economy ...
We’re building the B Corp movement to change our economic system
– and to do so, we must change the rules of the game. B Lab creates
standards, policies, tools, and programs that shift the behaviour,
culture, and structural underpinnings of capitalism. We mobilize the
B Corp community towards collective action to address society’s
most critical challenges.”
Source: https://www.bcorporation.net/en-us/movement/about-b-lab/
We are proud to become B Corp certified.
This perfectly aligns with Comvita’s founding principles
and ongoing commitments captured in our Harmony Plan.”
DAVID BANFIELD, CEO
Taking the lead on social and environmental
performance is not only what our people,
planet and community needs – it’s also good
for business.
54
ANNUAL REPORT
COMVITA.CO.NZ
SUSTAINABILITY – ENVIRONMENTAL, SOCIAL, GOVERNANCE /
KAITIAKITANGA – TAIAO, PĀPORI, MANA WHAKAHAERE
2023
55

As we approach the milestone of our 50th
year, we are shaping the next chapter for Comvita.
For Comvita to be at its best, we need to create
an environment that enables our team to perform.
FY23 was a pivotal year in our transformation
journey where we focused on performance
culture and meaningful connections to build
an impactful legacy.
These major initiatives were under way or
advanced in FY23:
• Meeting our team shareholding principle
philosophy, with 91% of our global employees
now shareholders (or bonus scheme equivalent).
• Operating model optimisation with consumers
firmly at the centre. This includes an information
systems upgrade to improve internal capacity,
speed to market and our ability to scale.
• Evolution in our ways of working to drive
a learning organisation underpinned by
freedom and accountability.
• Positively impacting employees' lives
through continued progression in our
employee value proposition (EVP), with
an emphasis on wellbeing.
• Completion of year one of our Time to Heal
programme where we live our purpose by
giving the global team paid time off to
support communities in need.
• B Corp certification – a testament to the
commitment of our teams worldwide to all
that this stands for.
We take care to listen to the voice of our team
as a key means to measure progress against
our performance culture and best employer
goals. This includes periodic surveys delivered in
all languages used across Comvita. In our most
recent survey, 92% of our team globally contributed
their voice. We were delighted to see a material
shift in our team recommending us as an employer,
with our Employee Net Promoter Score (eNPS)
climbing to +21.
CULTURE
AND
PEOPLE
0
+21
Positive
OUR
ASPIRATION
BEST EMPLOYER
79% ENGAGEMENT
PEOPLE IN FOCUS
We aim to create an environment where our team
can thrive, unlocking individual potential and
creating a legacy everyone can be proud of.”
KIRSTY DENT
ACTING CHIEF PURPOSE & TRANSFORMATION OFFICER
+30
2022
BASELINE
2023
UPDATE
2024
GOAL
* Acquisition of HoneyWorld™ team not included in this number.
** In markets with recognised living wage.
*** Global team as shareholders or bonus scheme equivalent.
75%
EXECUTIVES WITH
INTERNATIONAL EXPERIENCE
ETHNICITIES IN
GLOBAL TEAM
22
OF GLOBAL EMPLOYEES
ARE FEMALE
67%
INDIVIDUAL
WELLBEING CHECKS
3 41
40%
OF EXECUTIVES REPORTING
TO CEO ARE FEMALE
38%
OF COMVITA DIRECTORS
ARE FEMALE
40%
OF OUR ROLES WERE
FILLED INTERNALLY
REGIONAL
APPRENTICESHIPS
UNDER WAY
9
GLOBAL FULL-TIME
EQUIVALENT (FTE) ROLES
559
*
GLOBAL LENGTH OF
SERVICE (AVERAGE)
4.3YRS
100%
**
LIVING WAGE
91%
***
GLOBAL TEAM AS
SHAREHOLDERS

+7,600BPS
Comvita's
co-founder
Alan Bougen
& wife Lynda
Bougen with
our Country
Market
Leads at our
2023 Hive
Gathering.
5657
ANNUAL REPORT
COMVITA.CO.NZ
2023
SUSTAINABILITY – ENVIRONMENTAL, SOCIAL, GOVERNANCE /
KAITIAKITANGA – TAIAO, PĀPORI, MANA WHAKAHAERE

LOOKING FORWARD ————
• Ongoing new ways of working to enable our team to thrive.
• Focused investment in leadership development.
• Targeting global eNPS +30 on our way to best employer.
PERFORMANCEIMPACT
POWER OF
CONNECTION
CONNECTING TO OUR
MĀORI JOURNEY
MĀTAURANGA

We recognise the mana whenua of Tapuika,
and we are taking steps to build a lasting and
mutually beneficial partnership.
We are in the early stages of our te ao Māori journey,
and we are deeply appreciative of the support and
input we receive from the Tapuika Iwi Authority. We
were honoured to have Tapuika bless the reopening
of our Customer Support Centre during a dawn
ceremony at Paengaroa, and for Rawiri Biel, Chair
of the Tapuika Iwi Authority, to open our 2023 Hive
Gathering and attend our Stakeholder Open Day.
In FY23, we initiated a range of opportunities to
educate and connect. These are some highlights:
• Te ao Māori engagement group activated
across Aotearoa New Zealand and Australia.
• Extension of te reo Māori awareness and use
within our internal communication forums.
• Te reo Māori learning opportunities introduced,
with 45 participants in our first three cohorts.
• Establishment of Comvita waiata groups,
including performing our very own waiata.
• Local community engagement, including
support for kai resilience.
• Planning for our kūmara garden on site at
Paengaroa – an opportunity to reinstate
what was once on the whenua and connect
with the ancestral history of the land.
I am proud to see how far we have
come in the last year. Our team
are more willing to showcase te ao
Ma-ori, share their voice and be
more involved in celebrating our
culture, safe in the knowledge that
Comvita provides a supportive
space, to learn, grow and share.”
KAITOHUTOHU MĀORI DAVID WALTERS

Creating an aspirational, inclusive and
connected workplace where our team can thrive
is crucial to engagement and performance.
Disruption due to Covid accelerated our need to
embrace new ways of working and focused our
minds on creating a working philosophy designed
to balance being together, celebrating success
and working remotely. We are pleased with
Comvita
team and
international
chef William
Mordido,
Bocuse d’Or,
at 2023 Hive
Gathering.
1.
Flexible working
We are committed to creating an inclusive workplace where we can work from
anywhere at any time subject to business needs, with ongoing optimisation of
our tools and supporting processes to enhance remote working and flexibility.
2.
Hive to home
We connected our team to consumers and markets where they experienced our
in-market product activations, bee experiences and operations tours and our
experiential space at the Wellness Lab.
3.
Celebrating diversity
We provide diversity, equity and inclusion training for all employees. We are
supporting understanding and connection through our celebration of cultural
norms and festivals around the world.
4.
Progressive EVP
Our FY23 initiatives include elevation of our family support policies and
progressive retirement planning and support. We celebrate service milestones
from completion of the first year through to 30 years and beyond. Our longest-
serving employee joined Comvita in 1982.
our progress towards our stated aspiration to
become best employer.
Our team are passionate about Comvita and
what it represents, and through engaging with
their feedback, we were able to craft experiences
and solutions that provided real and enduring
moments of impact.
PERFORMANCE
CONNECTION
LEGACY
58
ANNUAL REPORT
2023
SUSTAINABILITY – ENVIRONMENTAL, SOCIAL, GOVERNANCE /
KAITIAKITANGA – TAIAO, PĀPORI, MANA WHAKAHAERE
COMVITA.CO.NZ
59

On 14 February 2023, the Hawke’s Bay
region in Aotearoa New Zealand experienced
the destructive force of Cyclone Gabrielle,
marking the apex of an intense wet weather
season that had ravaged the North Island
throughout the summer. This natural disaster
brought widespread damage and flooding,
leaving the people of Hawke’s Bay in a state of
extreme vulnerability and isolation. Tragically,
the cyclone claimed 11 lives across the region.
Our Hawke’s Bay Apiary branch was in
an area heavily impacted by floodwaters,
alongside our extraction facility and on-
site staff housing. We prioritised the safety
of our 13-member team and their families.
Unfortunately, we were not able to prevent
the loss of more than 22 million bees within
the Apiary sites. An internal Comvita response
team was quickly assembled to provide ongoing
assistance and support to the team members,
including emergency funding, care packages
and temporary accommodation for those
displaced by the floods.
When the immediate danger subsided,
our attention shifted to damage assessment
for the extraction facility and warehousing
– but our buildings, plant and inventory were
irrecoverable. Cyclone Gabrielle struck in the
CYCLONE
AND THE RESILIENCE
OF THE OUR APIARY TEAM
GABRIELLE
14.02.23 / TRAGEDY

Ethan Paulsen has been beekeeping
for 15 years – a craft and passion he discovered
almost by accident, but one he now describes
as core to his personal purpose. Ethan’s
leadership throughout the disaster was
underpinned by authentic compassion and a
grounded pragmatism to just get things done.
Ethan’s reflection
“I am so grateful the team and all our families
and loved ones are safe. Once we got through
the cyclone itself, the hardest part to accept
was complete devastation to the Apiary branch.
It was sad to lose so many bees when you dedicate
so much of your time to caring for them.
The team felt really supported when we needed it
most. The Comvita values were absolutely backed
up by action – not just the team on the ground but
from all those around us. We really are an A+ team.
And from this crisis comes the opportunity to build
something even better.”
middle of our extraction season, and all honey
stored on site was also written off. Fortunately,
the resilience of the Comvita end-to-end business
model gives us the ability to overcome such supply
shocks. We were able to continue processing the
remainder of the harvest through our facilities in
other parts of the North Island. We used Comvita’s
ecommerce reach to run campaigns in March and
April, with the revenue from all sales donated to
the Red Cross in support of the wider region.
Alongside many impacted in Hawke’s Bay,
our Apiary team, led by Branch Manager
Ethan Paulsen, faced exceptionally challenging
circumstances in the aftermath of Cyclone
Gabrielle. Their remarkable leadership and
fortitude showcased the strength of our Comvita
spirit in the face of adversity. We acknowledge
Ethan and his team’s ultimate commitment to
safety through his rapid and effective emergency
response, the teamwork and tangible support
shown for one another and the wider community.
The team pivoted at pace to enable our operation
to recover as quickly as possible.
61
COMVITA.CO.NZ
2023
60
ANNUAL REPORT
SUSTAINABILITY – ENVIRONMENTAL, SOCIAL, GOVERNANCE / KAITIAKITANGA – TAIAO,
PĀPORI, MANA WHAKAHAERE

Comvita is committed to ensuring
health and safety is integrated into daily
operations. We believe the key to ongoing
improvement is through simplification
and reach. Ultimately, we are empowering
all Comvita people to be safety leaders in
the workplace to ensure all return home
safe and well every day.
Following three years of extended Covid disruptions,
Comvita welcomes a rise in proactive reporting.
We also experienced a rise in reactive reporting,
seen by the jump in our lost-time injury frequency
rate (LTIFR) as well as our total recordable injury
frequency rate (TRIFR). With 95% of lost-time
injuries from low-risk events, we are now working
to improve the way we manage discomfort and
minor injuries in the workplace. We launched our
‘back to basics’ strategy to improve proactive risk
escalation and management of follow-up actions.
Notes:
• TRIFR per 200,000 hours worked.
• LTIFR per 200,000 hours worked.
• MVIFR per 200,000 km (Comvita metric).
• We did not have any reported cases of ill-health (musculo-skeletal injuries are reported as workplace injuries).
• All numbers relate to our employees, with no recordable injuries reported for our small contractor base in FY23.
3.8
TRIFR
+19% VS FY22 (3.2)
2.2
SAFETY CULTURE
MATURITY
+38% VS FY22 (1.6)
0.53
MVIFR
-41% VS FY22 (0.9)
+19%
NEAR-MISS REPORTING
341
INDIVIDUAL
WELLBEING AND
MENTAL HEALTH
CHECKS
+7% VS FY22 (320)
2.7
LTIFR
+80% VS FY22 (1.5)
We are pleased with the overall increase in
proactive reporting of hazards and near misses,
and we are doubling down to drive even more
attention on lead indicators going forward.
Travelling on the roads between Comvita sites
is one of our highest-risk activities, and we have
put a lot of emphasis on safe driving practices in
previous seasons. We are happy to report a 41%
reduction in motor vehicle injury frequency rate
(MVIFR) versus FY22.
EVOLVING OUR SAFETY CULTURE MATURITY
Our safety culture maturity model is built on
a stepped progression from basic compliance
through to behavioural safety leadership, and we
are confident our rating growth of +0.62 across 12
operational teams will drive systemic improvement
in our safety performance going forward.
HEALTH AND SAFETY
BACK TO BASICS
62
ANNUAL REPORT
SUSTAINABILITY – ENVIRONMENTAL, SOCIAL, GOVERNANCE /
KAITIAKITANGA – TAIAO, PĀPORI, MANA WHAKAHAERE
COMVITA.CO.NZ
2023
63

Being a Safer Hive Champion is a great opportunity to grow
my leadership skills and confidence. Elevating our workplace
Health & Safety makes this role incredibly meaningful. Some
of my more timid colleagues are now approaching me with
H&S ideas and I love seeing my team adopt best practice and
make positive change to ensure everyone's safety. They've even
mentioned the workplace feels safer now!”
ANDRES BAEZ, SAFER HIVE CHAMPION
WHANGANUI APIARY
LOOKING FORWARD ————
• Promoting proactive intervention to improve lead and lag safety metrics.
• Targeting a +0.5 improvement in rating for our safety maturity culture.
• Continued investment in our progressive wellbeing programmes globally.
CULTURE SAFETY LEADERSHIP
HEALTH AND SAFETY
AND WELLBEING
ENGAGEMENT
ENABLING OUR TEAM TO THRIVE

We launched our holistic wellbeing support
programme Thrive in 2021.
We have increased the number and range of
initiatives every year since, including activations
around physical wellbeing, mental health, financial
literacy and community connection. We were
pleased to receive strong endorsement of this
strategy last year, with 80% of global employees
agreeing Comvita prioritises wellbeing in our most
recent engagement survey.
PROMOTING A SAFE WORKPLACE
Safety engagement improves workplace culture,
builds relationships and increases productivity
through improving processes. It also does the
obvious – prioritising health and safety –ultimately
making our workplace a safer place to be. We
promote safety engagement at Board level and
throughout our organisation:
• We learn and continuously improve through what
goes right as well as what goes wrong, trusting
in ourselves and each other as we work together.
• We model strong safety leadership engagement
through authentic examples of doing the right
thing, including on-the-ground engagement
from our Board.
• We re-energised our Safer Hive Committee
and we celebrate the in-depth reach and
influence our Safer Hive Champions have
within our range of operational teams.
• We improved our communications and
engagement around health and safety
through learning opportunities, including
leadership coaching, robust internal
and external training programmes and
improvements to our safety culture maturity
assessment and action planning.
Members of Comvita Board and leadership team
conducting a leadership safety walk.
64
ANNUAL REPORT
SUSTAINABILITY – ENVIRONMENTAL, SOCIAL, GOVERNANCE /
KAITIAKITANGA – TAIAO, PĀPORI, MANA WHAKAHAERE
65
2023
COMVITA.CO.NZ