AMENDED: Comvita FY24 results
26 September 2024
AMENDED: Comvita FY24 results impacted by challenging market conditions
During the process of finalising the Annual Report, and following auditor review, Comvita has identified
that a correction is required to the calculation of its FY24 underlying results as reported to the market on
29 August 2024. There has been no change to the audited FY24 Financial Statements released.
The correction relates to the following matters:
• A late adjustment of $4.2M before tax to record the FY24 honey harvest at its fair value was
incorrectly included as a non-recurring item and thus was excluded from underlying EBITDA* and
NPAT**. This $4.2M adjustment has now been included in underlying EBITDA and NPAT.
• Negative one-off tax impacts were reported as $5.5M, but this should have been $3.7M.
In addition to this correction, the following changes have been made:
• All references to impairment have been updated to the total amount of $64.2M, rather than the
$59.8M identified as part of the independent impairment review completed during the year-end
process. The difference is the Medibee impairment amount of $4.4M already recorded in the
unaudited results released on 29 July 2024. The Medibee impairment has been moved from non-
recurring items to impairment.
• Reported EBITDA to align to the Financial Statements note 8 disclosure, being EBITDA pre-
impairment.
As a result of these changes, FY24 underlying EBITDA is now $10.3M (rather than the $14.6M previously
reported). Underlying NPAT is now -$9.3M (rather than -$5.6M) and reported NPAT is unchanged at -
$77.4M.
The attached Investor Presentation has been amended as follows:
• Underlying EBITDA from $14.6M to $10.3M on pages 3, 6, 7, 8
• Underlying NPAT from -$5.6M to -$9.3M on pages 3, 6, 7, 8, 33
• Non-recurring costs after tax from $15.7M to $7.6M, on pages 3, 6, 7, 8
• Non-cash impairment from $64.2M before tax, instead of $59.8M on pages 3, 6, 7, 8
• Reported EBITDA to be EBITDA pre-impairment on page 3
• Non-cash impairment table to tie to Financial Statement balance sheet on page 7
The attached document titled “Comvita FY24 results impacted by challenging market conditions” has
been amended to correct underlying EBITDA and NPAT figures as well as presentation of reported
impairment and EBITDA numbers as noted above. Attached to this announcement is a marked-up
version and a clean version is outlined below.
The rest of the announcement is the same as the original except for the errors noted above.
FULL AMENDED ANNOUNCEMENT BELOW – 29 August 2024
Comvita Limited (NZX:CVT) is reporting FY24 results, which were impacted by challenging market
conditions, as well as a substantial non-cash impairment and one off non-recurring costs.
FY24 Results snapshot
• Revenue of $204.3M -12.7% vs PCP (FY23: $234M)
• Gross profit of 55% -300bps vs PCP (FY23: 58%)
• EBITDA
*
o Reported pre-impairment $4.5M (FY23: $30.6M)
o Underlying
**
$10.3M (FY23: $33.5M)
• NPAT
o Reported -$77.4M (FY23: $11.1M)
o Underlying** -$9.3M(FY23: $13.1M)
• Non-recurring one off costs of $7.6M
• Non-cash impairment of $64.2M before tax (FY23: $0)
• Net debt $79.7M (FY23: $53.4M)
• Inventory $134.4M (FY23: $136M) targeting material inventory reduction in FY25
• No dividend declared
Key points
• Demand: Abrupt change in consumer demand following macro-economic challenges in China
and loss of a major customer in the North America market
• Cancellation of major shopping events (12:12 and 6:18 shopping festival) and weak 11:11 festival
in China severely impacted demand
• Pricing: Significant unsustainable aggressive short-term price driven promotions from competition
and beekeepers exiting the category
• Supply: Over production from FY17 – FY22 has created a glut of honey being cleared in markets
around the world. Between 2020 and 2023 there has been a 56% reduction in supply, in addition,
hive numbers are forecast to drop by 50% to c500K by 2025
• Business model designed for anticipated growth with a significant fixed cost element
• Long term cost-out programme initiated and on track, targeting $10M-$15M annualised savings to
enable Comvita to be agile through different economic cycles
CEO David Banfield said “I’m extremely disappointed with the results that we report today, particularly
after three consecutive years of record performance. Throughout FY24 we faced difficult trading
conditions in our key markets along with aggressive price activity from competitors caused by industry
overstocks. Our revenue and gross profit decline along with significant non-recurring costs and a non-
cash impairment has resulted in a net loss of -$77.4M with an underlying net loss after tax of -$9.3M. We
already have action underway to target value consumers whilst continuing our brand premiumisation in
key Asian markets. Our $10-15M cost out programme is on target and is designed to streamline and
simplify the business and ensure agility through different economic cycles. In addition, we have a clear
focus on inventory reduction enabling us to reduce net debt to targeted levels.
I’d like to thank and recognise the hard work and resilience of the team in New Zealand and markets
around the world as we navigate these tough trading conditions.” Concluded Banfield.
Financial Overview
Comvita revenue declined by $29.9M to $204.3M in FY24. Weaker sales were reported in China, North
America, ANZ and EMEA offset somewhat by revenue growth in South East Asia in its HoneyWorld™
retail outlets. While percentage gross profit remained robust at 55%, one off and non-recuring costs of
$7.6M(after tax) meant that the company recorded an NPAT loss of -$16.9M before impairment, and an
underlying NPAT loss of -$9.3M after impairment. This weaker performance led to a material gap
between the company’s net total assets (tangible and intangible) and its market capitalisation, indicating
potential impairment. An independent impairment review was initiated by the board, resulting in a non-
cash impairment of $64.2M (before tax). Including this impairment Comvita’s reported NPAT loss is -
$77.4M.
Non-cash impairment & one-off non-recurring costs
The identified impairments included -$3.4M in fixed assets, -$43M in intangible assets $13.4M in
investments and $4.4M Medibee impairment leading to a total non-cash impairment of -$64.2M (-$60.5M
after tax).
In addition, during the year, the company incurred one-off, non-recurring costs of $7.6M (after tax).
Included within this were, ERP implementation costs of $5.2M, NBIO costs and restructuring costs of
$2.2M, and was offset by benefits from the Makino sale, insurance proceeds and HoneyWorld™
contingency consideration release of $3.5M in total, with other one-off negative tax impacts of $3.7M.
Net Debt and banking update
Our bank debt is shown as current in our financial statements, as at 30 June 2024, as we subsequently
identified that we had breached a bank covenant tested by reference to EBITDA at 30 June 2024. As
part of our year-end process, when we identified the possibility that the covenant may have been
breached at the testing date, we obtained a waiver confirming that no action will be taken for that breach
from our banking syndicate. We are currently in discussions to agree a covenant structure for FY25 that
will be acceptable to both the bank syndicate and the Company. The bank syndicate continue to confirm
their ongoing support for the Company. The revised bank covenant structure is expected to be confirmed
in September.
MARKET SEGMENTS
Greater China and North America
FY24 sales in Greater China were $89.8m, down $19.2M or 17.6% on FY23 ($109m). Sales were
impacted by the cancellation of 12:12 shopping festival, in December 2023, and 6:18 shopping festival in
June, 2024, as well as generally lower honey sales due to macro-economic challenges. Gross profit in
this market was down $15.3M (-210 bps) due to the sales miss. The China market’s net contribution for
FY24 was $17.2M, down 35.9% ($9.6M) due to high fixed cost model.
North American sales were $26.1M for the full year, down $9.5M or 26.6% (FY23: $35.6M). The loss of
some distribution with one major customer had a significant impact. Excluding that customer loss, offline
revenue was up 19%. Online revenue was 49% of total sales for FY24, up 7% on FY23. Direct margin
was up 130 bps due to channel share. As with China, the sales miss meant gross profit in North America
was lower, down $5.3M (-160bps). This market’s net contribution at $4.7M was down $4.2M or -47.5%.
Rest of Asia & Australia and New Zealand
Rest of Asia sales were $37.1M for FY24, up $5.3m or 16.6% (FY23: $31.8M), inclusive of Singapore
sales up $7.9M vs PCP. Net contribution of $2.7M (FY23: $8.3M) was down $5.5M or 66.9% due to high
fixed cost model and low price competition, resulting in a percentage net contribution of 7.4% (FY23:
26.1%).
Australia and New Zealand sales were down 10.8% to $36.4M (FY23: $40.8M) primarily due to weak
cross border sales to China market. The revenue reduction meant that net contribution reduced in line
with sales. Percentage net contribution was flat year on year at 28.3% (FY23: 28.4%), contributing
$10.3M (FY23: $11.6M).
Aggressive price competition
Comvita experienced aggressive and potentially unsustainable price competition in all markets, primarily
aimed at its entry point product range. This activity caused by a glut in supply meant that market share
was directly impacted in its Greater China and Rest of Asia segments.
Supply and demand
The Mānuka honey industry experienced significant growth between 2008 and 2020, with hive numbers
trebling, to peak at c1M hives in 2019. This created significant oversupply to the market, which coupled
with declining exports and Comvita’s growing market share meant that many beekeepers exited the
category, with production down 56% between 2020 and 2023. The current economics of an apiary
operation are unsustainable in the long run. It’s currently estimated that there are c500K hives in New
Zealand (half the 2019 number). This contraction in supply will see a return to supply and demand
equilibrium with associated economics in the near term. Comvita is well placed for long-term supply
through its forest programme that is already productive.
Long term demand
Global Total Addressable Market (TAM) for honey is forecast to grow by 6.5% CAGR to 2030. Google
searches for Mānuka honey continue to increase as consumers seek natural health and wellness
products. Comvita science positions the company well to capitalise on this opportunity.
Outlook
Comvita’s emphasis in FY25 is on cost reduction, positive operating cashflow and debt reduction.
Commercially the business will target value seeking consumers with new entry point ranges, though
continuing with premiumisation of its most efficacious products and further elevation of its brand through
high profile partnerships throughout Asia. In addition, Comvita will launch incremental regional new
product development designed to target different usage occasions and meet specific market or regional
needs.
Commenting Brett Hewlett, Chair stated “While we initially appeared to be navigating this fall off the peak,
the full impact of the global economic slowdown, aggressive price competition and a significant sales
decline in China hit home in H2 FY24. This has been a challenging time for the company.”
“This has caused us to take urgent action to right-size the company, and to de-risk, without compromising
our long-term potential so we can respond positively as market conditions stabilise,” he said. “While
market conditions remain difficult we are continuing to efficiently build our brand, our product offers and
our market position to sustain long-term value in a market that remains promising through to 2030 and
beyond.”
Comvita recently announced its $10-$15M annualised cost out programme targeting $5-8M of cost of sale
reductions and $5-$7M of opex savings. This programme is on track and is designed to increase agility in
the Comvita business model between economic cycles. Comvita will also focus on reducing debt through
inventory sell down and targeted cashflow initiatives.
Comvita is not providing guidance at this time but will update the market on trading performance at its
Annual Shareholder Meeting in October.
The company recently announced several changes to board and management which will take effect on
August 31, 2024.
Brett Hewlett
Chair
David Banfield
CEO
* EBITDA is a non-GAAP financial measure calculated as Earnings before Interest, Tax, Depreciation and
Amortisation and does not have a standardised meaning prescribed by GAAP.
** Underlying EBITDA and NPAT are also non-GAAP financial measures under which EBITDA and NPAT
are adjusted for one-off matters including non-cash impairment & one off non-recurring costs. An
overview of the adjustments made to reach underlying EBITDA is set out on page 8 of the corrected
Investor Presentation.
ENDS.
For more information, please contact:
Jessica Sanders | Comvita
Mobile: +61 448 303 839
Email: Jessica.sanders@comvita.com
Background information
Comvita (NZX:CVT) was founded in 1974/5, with a purpose to heal and protect the world through the
natural power of the hive. With a team of 550+ people globally, united with more than 1.6 billion bees, we
are the global market leader in Mānuka honey and bee consumer goods. Seeking to understand, but
never to alter, we test and verify all our bee-product ingredients are of the highest quality in our own
government-recognised and accredited laboratory. We are growing scientific knowledge on Mānuka trees,
the many benefits of Mānuka honey and propolis and bee welfare. We have planted millions of native
trees, improving our natural ecosystems and biodiversity, and mitigating climate change in conjunction
with our focus on carbon emissions reduction, while helping ensure the supply of high quality Mānuka
honey. In 2023 Comvita was certified B Corp, a global community of like-minded companies that strive to
balance profit with purpose, seeking to use business as a force for good. Comvita has operations in
Australia, China, North America, Southeast Asia, and Europe – and of course, Aotearoa New Zealand,
where our bees are thriving.
---
1
EBITDA is a non-GAAP financial measure calculated as Earnings before Interest, Tax, Depreciation and Amortisation and does not have a standardised meaning
prescribed by GAAP.
2
Underlying EBITDA is also a non-GAAP financial measure under which EBITDA is adjusted for one-off matters including non-cash impairment & one off non-recurring
costs.
* Note that the Medibee impairment of $4.43M was taken up prior to the subsequent impairment review.
29 August 2024
Comvita FY24 results impacted by challenging market conditions
Comvita Limited (NZX:CVT) is reporting FY24 results, which were impacted by challenging market
conditions, as well as a substantial non-cash impairment and one off non-recurring costs.
FY24 Results snapshot
Revenue of $204.3M -12.7% vs PCP (FY23: $234M)
Gross profit of 55% -300bps vs PCP (FY23: 58%)
EBITDA
1
o Reported pre-impairment -$59.6M $4.5M (FY23: $30.6M)
o Underlying
2
$14.6M $10.3M (FY23: $33.5M)
NPAT
o Reported -$77.4M (FY23: $11.1M)
o Underlying -$5.6M -$9.3M(FY23: $13.1M)
Non-recurring one off costs of $15.7 $7.6M
Non-cash impairment of $59.8 $64.2M* before tax (FY23: $0)
Net debt $79.7M (FY23: $53.4M)
Inventory $134.4M (FY23: $136M) targeting material inventory reduction in FY25
No dividend declared
Key points
Demand: Abrupt change in consumer demand following macro-economic challenges in China and
loss of a major customer in the North America market
Cancellation of major shopping events (12:12 and 6:18 shopping festival) and weak 11:11 festival in
China severely impacted demand
Pricing: Significant unsustainable aggressive short-term price driven promotions from competition
and beekeepers exiting the category
Supply: Over production from FY17 – FY22 has created a glut of honey being cleared in markets
around the world. Between 2020 and 2023 there has been a 56% reduction in supply, in addition,
hive numbers are forecast to drop by 50% to c500K by 2025
Business model designed for anticipated growth with a significant fixed cost element
Long term cost-out programme initiated and on track, targeting $10M-$15M annualised savings to
enable Comvita to be agile through different economic cycles
CEO David Banfield said “I’m extremely disappointed with the results that we report today, particularly after
three consecutive years of record performance. Throughout FY24 we faced difficult trading conditions in our
key markets along with aggressive price activity from competitors caused by industry overstocks. Our
revenue and gross profit decline along with significant non-recurring costs and a non-cash impairment has
resulted in a net loss of -$77.4M with an underlying net loss after tax of -$5.6M -$9.3M. We already have action
underway to target value consumers whilst continuing our brand premiumisation in key Asian markets. Our
$10-15M cost out programme is on target and is designed to streamline and simplify the business and ensure
agility through different economic cycles. In addition, we have a clear focus on inventory reduction enabling
us to reduce net debt to targeted levels.
I’d like to thank and recognise the hard work and resilience of the team in New Zealand and markets around
the world as we navigate these tough trading conditions.” Concluded Banfield.
Page 2 of 4
Financial Overview
Comvita revenue declined by $29.9M to $204.3M in FY24. Weaker sales were reported in China, North
America, ANZ and EMEA offset somewhat by revenue growth in South East Asia in its HoneyWorld™ retail
outlets. While percentage gross profit remained robust at 55%, one off and non-recuring costs of $15.7M
$7.6M(after tax) meant that the company recorded an NPAT loss of -$21.3M -$16.9M before impairment, and
an underlying NPAT loss of -$5.6M -$9.3M after impairment. This weaker performance led to a material gap
between the company’s net total assets (tangible and intangible) and its market capitalisation, indicating
potential impairment. An independent impairment review was initiated by the board, resulting in a non-cash
impairment of $59.8M $64.2M (before tax). Including this impairment Comvita’s reported NPAT loss is -
$77.4M.
Non-cash impairment & one-off non-recurring costs
The identified impairments included -$3.4M in fixed assets, -$43M in intangible assets and -$13.4M in
investments, and $4.4M Medibee impairment leading to a total non-cash impairment of -$59.8M$64.2M (-
$56.1 -$60.5M after tax).
In addition, during the year, the company incurred one-off, non-recurring costs of $15.7M $7.6M (after tax).
Included within this were, ERP implementation costs of $5.2M, NBIO costs, and restructuring costs and
Medibee impairment of $5.4 $2.2M, and. The FY24 honey harvest revaluation of $3M was offset by benefits
from the Makino sale, insurance proceeds and HoneyWorld™ contingency consideration release of $3.4
$3.5M in total, with other one-off negative tax impacts of $3.7M5.5M.
Net Debt and banking update
Our bank debt is shown as current in our financial statements, as at 30 June 2024, as we subsequently
identified that we had breached a bank covenant tested by reference to EBITDA at 30 June 2024. As part of
our year-end process, when we identified the possibility that the covenant may have been breached at the
testing date, we obtained a waiver confirming that no action will be taken for that breach from our banking
syndicate. We are currently in discussions to agree a covenant structure for FY25 that will be acceptable to
both the bank syndicate and the Company. The bank syndicate continue to confirm their ongoing support
for the Company. The revised bank covenant structure is expected to be confirmed in September.
MARKET SEGMENTS
Greater China and North America
FY24 sales in Greater China were $89.8m, down $19.2M or 17.6% on FY23 ($109m). Sales were impacted by
the cancellation of 12:12 shopping festival, in December 2023, and 6:18 shopping festival in June, 2024, as
well as generally lower honey sales due to macro-economic challenges. Gross profit in this market was down
$15.3M (-210 bps) due to the sales miss. The China market’s net contribution for FY24 was $17.2M, down
35.9% ($9.6M) due to high fixed cost model.
North American sales were $26.1M for the full year, down $9.5M or 26.6% (FY23: $35.6M). The loss of some
distribution with one major customer had a significant impact. Excluding that customer loss, offline revenue
was up 19%. Online revenue was 49% of total sales for FY24, up 7% on FY23. Direct margin was up 130 bps
due to channel share. As with China, the sales miss meant gross profit in North America was lower, down
$5.3M (-160bps). This market’s net contribution at $4.7M was down $4.2M or -47.5%.
Page 3 of 4
Rest of Asia & Australia and New Zealand
Rest of Asia sales were $37.1M for FY24, up $5.3m or 16.6% (FY23: $31.8M), inclusive of Singapore sales up
$7.9M vs PCP. Net contribution of $2.7M (FY23: $8.3M) was down $5.5M or 66.9% due to high fixed cost model
and low price competition, resulting in a percentage net contribution of 7.4% (FY23: 26.1%).
Australia and New Zealand sales were down 10.8% to $36.4M (FY23: $40.8M) primarily due to weak cross
border sales to China market. The revenue reduction meant that net contribution reduced in line with sales.
Percentage net contribution was flat year on year at 28.3% (FY23: 28.4%), contributing $10.3M (FY23: $11.6M).
Aggressive price competition
Comvita experienced aggressive and potentially unsustainable price competition in all markets, primarily
aimed at its entry point product range. This activity caused by a glut in supply meant that market share was
directly impacted in its Greater China and Rest of Asia segments.
Supply and demand
The Mānuka honey industry experienced significant growth between 2008 and 2020, with hive numbers
trebling, to peak at c1M hives in 2019. This created significant oversupply to the market, which coupled with
declining exports and Comvita’s growing market share meant that many beekeepers exited the category,
with production down 56% between 2020 and 2023. The current economics of an apiary operation are
unsustainable in the long run. It’s currently estimated that there are c500K hives in New Zealand (half the
2019 number). This contraction in supply will see a return to supply and demand equilibrium with associated
economics in the near term. Comvita is well placed for long-term supply through its forest programme that
is already productive.
Long term demand
Global Total Addressable Market (TAM) for honey is forecast to grow by 6.5% CAGR to 2030. Google searches
for Mānuka honey continue to increase as consumers seek natural health and wellness products. Comvita
science positions the company well to capitalise on this opportunity.
Outlook
Comvita’s emphasis in FY25 is on cost reduction, positive operating cashflow and debt reduction.
Commercially the business will target value seeking consumers with new entry point ranges, though
continuing with premiumisation of its most efficacious products and further elevation of its brand through
high profile partnerships throughout Asia. In addition, Comvita will launch incremental regional new product
development designed to target different usage occasions and meet specific market or regional needs.
Commenting Brett Hewlett, Chair stated “While we initially appeared to be navigating this fall off the peak,
the full impact of the global economic slowdown, aggressive price competition and a significant sales decline
in China hit home in H2 FY24. This has been a challenging time for the company.”
“This has caused us to take urgent action to right-size the company, and to de-risk, without compromising
our long-term potential so we can respond positively as market conditions stabilise,” he said. “While market
conditions remain difficult we are continuing to efficiently build our brand, our product offers and our market
position to sustain long-term value in a market that remains promising through to 2030 and beyond.”
Comvita recently announced its $10-$15M annualised cost out programme targeting $5-8M of cost of sale
reductions and $5-$7M of opex savings. This programme is on track and is designed to increase agility in the
Comvita business model between economic cycles. Comvita will also focus on reducing debt through
inventory sell down and targeted cashflow initiatives.
Page 4 of 4
Comvita is not providing guidance at this time but will update the market on trading performance at its
Annual Shareholder Meeting in October.
The company recently announced several changes to board and management which will take effect on
August 31, 2024.
Brett Hewlett
Chair
David Banfield
CEO
For further information:
Jessica Sanders | Comvita
Mobile: +61 448 303 839
Email: Jessica.sanders@comvita.com
About Comvita
Comvita (NZX:CVT) was founded in 1974/5, with a purpose to heal and protect the world through the
natural power of the hive. With a team of 550+ people globally, united with more than 1.6 billion bees, we
are the global market leader in Mānuka honey and bee consumer goods. Seeking to understand, but
never to alter, we test and verify all our bee-product ingredients are of the highest quality in our own
government-recognised and accredited laboratory. We are growing scientific knowledge on Mānuka
trees, the many benefits of Mānuka honey and propolis and bee welfare. We have planted millions of
native trees, improving our natural ecosystems and biodiversity, and mitigating climate change in
conjunction with our focus on carbon emissions reduction, while helping ensure the supply of high
quality Mānuka honey. In 2023 Comvita was certified B Corp, a global community of like-minded
companies that strive to balance profit with purpose, seeking to use business as a force for good.
Comvita has operations in Australia, China, North America, South East Asia, and Europe – and of course,
Aotearoa New Zealand, where our bees are thriving.
ENDS
---
Our
Results
AGILITY IN
UNPREDICTABLE TIMES
20242024
COMVITA.CO.NZCOMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS 2024 / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA 2024
20242024
SECTION 1
Directors' Declaration 03
SECTION 4
Audit Report 42
SECTION 3
Notes to the Financial
Statements 09
Performance
01. Segments 10
02. Revenue 11
03. Other income 11
04. Operating cash flow 12
05. Expenses 13
06. Personnel expenses 14
07. Tax 14
08. Supplementary
non-GAAP information -
EBITDA pre-impairment 15
SECTION 2
Consolidated Statements
Consolidated
Income Statement 04
Consolidated Statement of
Comprehensive Income 05
Consolidated Statement
of Changes in Equity 06
Consolidated Statement
of Financial Position 07
Consolidated Statement
of Cash Flows 08
SECTION 5
Statutory Information 46
SECTION 6
Directory 53
CONTENTS
Funding
09. Capital and reserves 16
10. Earnings per share 17
11. Distributions 17
12. Borrowings 18
13. Cash & cash equivalents 18
14. Finance income
& expenses 19
Working Capital
15. Inventory 20
16. Trade receivables 20
17. Sundry receivables 21
18. Trade and
other payables 21
Assets
19. Property, plant
& equipment 22
20. Right of use assets
and leases 24
21. Intangible assets 25
22. Goodwill and asset
impairment testing 27
23. Biological assets 31
24. Investments 32
25. Business combination 34
Financial Risk
26. Market risk 35
27. Liquidity risk 36
28. Credit risk 37
29. Financial instruments 38
Other Disclosures
30. Share schemes 39
31. Related parties 40
32. Group entities 41
33. Commitments 41
2
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
In the opinion of the Directors of Comvita Limited, the financial statements and the notes, on pages'
4 to 41:
• comply with New Zealand generally accepted accounting practice and fairly reflect the financial position
of the Group as at 30 June 2024 and the results of their operations and cash flows for the year ended
on that date
• have been prepared using appropriate accounting policies and supported by reasonable judgements and
estimates
The Directors believe that proper accounting records have been kept which enable, with reasonable
accuracy, the determination of the financial position of the Group and facilitate compliance of the
financial statements with the Financial Reporting Act 2013 and the Financial Markets Conduct Act 2013.
The Directors consider that they have taken adequate steps to safeguard the assets of the Group, and
to prevent and detect fraud and other irregularities. Internal control procedures are also considered to be
sufficient to provide reasonable assurance as to the integrity and reliability of the financial statements.
The Directors are pleased to present the financial report, incorporating the financial statements of
Comvita Limited for the year ended 30 June 2024.
For and on behalf of the Board of Directors:
Brett Hewlett Julia Hoare
28 August 2024 28 August 2024
DIRECTORS DECLARATION
3
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
For the year ended
In thousands of New Zealand dollars
Note
30 June 202430 June 2023
Revenue2204,341234,195
Cost of sales(91,952)(98,435)
Gross profit112,389135,760
Other income35,58712,177
Marketing expenses(24,331)(30,509)
Selling and distribution expenses(58,842)(54,484)
Administration and other operating expenses5(34,900)(36,140)
Software development expenses(7,245)(2,884)
Operating (loss)/profit before financing costs(7,342)23,920
Finance income14347314
Finance expenses14(9,800)(10,384)
Net finance expenses (9,453)(10,070)
Share of loss of equity accounted associates24(904)(844)
Impairment and other assets write-downs 22(64,190)-
(Loss)/profit before income tax(81,889)13,006
Income tax benefit/(expense)74,501(1,944)
(Loss)/profit for the year (77,388)11,062
Earnings per share:
Basic earnings per share (NZ cents)10(110.33)15.84
Diluted earnings per share (NZ cents)10(110.33)15.66
EBITDA pre-impairment *84,53930,623
The notes on pages 9 to 41 are an integral part of these financial statements
* EBITDA pre-impairment is a non-GAAP measure. We monitor this as a key performance indicator and believe
it assists investors in assessing the performance of the core operations of our business. A reconciliation of
EBITDA pre-impairment to profit before tax is provided in note 8.
CONSOLIDATED INCOME STATEMENT
4
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
The notes on pages 9 to 41 are an integral part of these financial statements
For the year ended
In thousands of New Zealand dollars
Note
30 June 2024
30 June 2023
(Loss)/profit for the year(77,388)11,062
Items that are or may be reclassified subsequently to the income
statement
Foreign currency translation differences for foreign operations (736)(862)
Foreign currency translation differences for equity accounted
investees
(18)113
Effective portion of changes in fair value of cash flow hedges1,6555,528
Foreign investor tax credits6793
Income tax on these items 7(244)(1,463)
Income and expenses recognised directly in other comprehensive income7243,409
Total comprehensive (loss)/income for the year(76,664)14,471
STATEMENT OF COMPREHENSIVE INCOME
5
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
The notes on pages 9 to 41 are an integral part of these financial statements
For the year ended 30 June 2024
In thousands of New Zealand dollars
Share
capital
Foreign
currency
translation
reserve
Hedging
reserve
Retained
earningsTotal
Balance at 30 June 2022199,677(1,992)(4,564)34,869227,990
Total comprehensive income for the year
(Loss)/profit for the year –––11,06211,062
Other comprehensive income (net of tax)
Foreign currency translation differences for
equity accounted investees (note 24)
–113––113
Foreign currency translation differences for
foreign operations
–(777)––(777)
Foreign investor tax credits–––9393
Effective portion of changes in fair value of
cash flow hedges
––3,980–3,980
Total other comprehensive income–(664)3,980933,409
Total comprehensive income for the year–(664)3,98011,15514,471
Transactions with owners, recorded directly in equity
Share based payments–––1,1461,146
Acquisition of treasury stock (322)––-(322)
Redemption of ordinary shares related to share
schemes
(4)––-(4)
Dividends paid (note 11)–––(3,961)(3,961)
Total transactions with owners(326)--(2,815)(3,141)
Balance at 30 June 2023199,351(2,656)(584)43,209239,320
Total comprehensive income for the year
(Loss)/profit for the year –––(77,388)(77,388)
Other comprehensive income (net of tax):
Foreign currency translation differences for
equity accounted investees (note 24)
–(17)––(17)
Foreign currency translation differences for
foreign operations
–(517)––(517)
Foreign investor tax credits–––6868
Effective portion of changes in fair value
of cash flow hedges
––1,191-1,191
Total other comprehensive income-(535)1,19167724
Total comprehensive income for the year-(535)1,191(77,321)(76,664)
Transactions with owners,
recorded directly in equity
Share based payments–––871871
Dividends paid (note 11)–––(2,897)(2,897)
Total transactions with owners–––(2,026)(2,026)
Balance at 30 June 2024199,351(3,191)607(36,137)160,630
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
6
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
The notes on pages 9 to 41 are an integral part of these financial statements
As at 30 June 2024
In thousands of New Zealand dollars
Note
20242023
Assets
Property, plant and equipment
19
72,03472,873
Intangible assets and goodwill
21
7,35241,754
Right of use assets and leases
20
20,22614,407
Biological assets
23
4,8064,437
Investments
24
-10,234
Loans to equity accounted investees
24
-6,058
Derivatives
26
86648
Deferred tax asset
7
9,2184,545
Sundry receivable
17
450450
Total non-current assets114,952154,806
Inventory
15
134,418136,088
Trade receivables
16
35,03039,373
Sundry receivables
17
15,22216,904
Cash and cash equivalents
13
8,15611,554
Tax receivable8041
Total current assets192,906203,960
Total assets307,858358,766
Equity
Issued capital199,351199,351
Retained earnings(36,137)43,209
Reserves(2,584)
(3,240)
Total equity160,630239,320
Liabilities
Loans and borrowings
12
-64,940
Trade and other payables
18
296288
Lease liability15,83411,972
Deferred tax liability
7
5721,509
Total non-current liabilities16,70278,709
Loans and borrowings
12
87,863-
Trade and other payables
18
35,82234,319
Lease liability5,7253,386
Tax payable1,1162,195
Derivatives
26
-837
Total current liabilities130,52640,737
Total liabilities147,228119,446
Total equity and liabilities307,858358,766
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
7
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2024
In thousands of New Zealand dollars
Note
20242023
Receipts from customers 205,299 223,849
Receipts from insurance proceeds
6,512 5,480
Payments to suppliers and employees
(204,101)(219,068)
Taxation paid
(2,377)(2,178)
Net cash flows from operating activities4 5,333 8,083
Investment in equity accounted investees
(2,482)-
Proceeds from disposal of investment
8-
Proceeds from disposal of equity accounted investee
1,932-
Loans to equity accounted investees
3,857(593)
Interest from related parties
2838
Payment for the purchase of property, plant and equipment
(7,494)(16,601)
Payment for the purchase of biological assets
(30)(538)
Receipt for the disposal of property, plant and equipment
-237
Acquisition of HoneyWorld
(7,294)-
Payment for the purchase of intangibles
(2,179)(3,297)
Net cash flows from investing activities(13,654)(20,754)
Redemption of ordinary shares
-(4)
Purchase of treasury stock
-(322)
Repayment of lease liabilities
(6,274)(4,898)
Proceeds from loans and borrowings
22,92321,640
Payment of dividends
(2,896)
(3,961)
Interest received
25
17
Interest paid
(8,733)
(5,740)
Net cash flows from financing activities5,0456,732
Net increase in cash and cash equivalents(3,276)(5,939)
Cash and cash equivalents at the beginning of the year11,55417,756
Effect of exchange rate fluctuations on cash held(122)(263)
Cash and cash equivalents at the end of the year8,15611,554
Represented as:
Cash and cash equivalents
13
8,15611,554
Total8,15611,554
The notes on pages 9 to 41 are an integral part of these financial statements
8
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
ACCOUNTING ENTITY
Comvita Limited (the “Company”) is a Company
domiciled in New Zealand, and registered under the
Companies Act 1993 and listed on the New Zealand
Stock Exchange (“NZX”). The Company is an issuer
in terms of the Financial Reporting Act 2013 and
Financial Markets Conduct Act 2013. The financial
statements of the Group for the year ended 30 June
2024 comprise the Company and its subsidiaries
(together referred to as the “Group”) and the
Group’s interest in equity accounted investees.
The principal activity of the Group is apiary and
forest ownership and management; and research,
manufacturing and distributing of Mānuka honey,
bee products and olive leaf products.
BASIS OF PREPARATION
Statement of compliance
The Company is a FMC reporting entity for the
purposes of the Financial Reporting Act 2013 and
under part 7 of the Financial Markets Conduct Act
2013. These financial statements comply with these
Acts and have been prepared in accordance with the
New Zealand Equivalents to International Financial
Reporting Standards and International Financial
Reporting Standards as appropriate for profit-
oriented entities.
The financial statements were approved by the
Board of Directors on 28 August 2024.
Basis of measurement
The financial statements have been prepared
on the historical cost basis except for financial
instruments designated as fair value through other
comprehensive income and biological assets which
are measured at fair value.
The methods used to measure fair values are
discussed further in the respective notes.
Functional and presentation currency
These financial statements are presented in
New Zealand dollars ($), which is the Company’s
functional currency. Amounts have been rounded
to the nearest thousand.
Use of estimates and judgements
The preparation of the financial statements
requires management to make judgements,
estimates and assumptions that affect the
application of accounting policies and the reported
amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting
estimates are recognised in the reporting period
in which the estimate is revised and in any future
periods affected.
Key sources of estimation uncertainty are included in
the individual notes in the financial statements:
• Intangible assets (note 21)
• Measurement of recoverability of cash
generating units (note 22)
• Valuation of biological assets (note 23)
• Valuation of equity accounted investments (note 24)
• Recoverability of deferred tax assets (note 7)
• Fair value of contingent consideration (note 25)
GOING CONCERN
It is the conclusion of the directors that the Group
will continue to operate as a going concern and the
financial statements have been prepared on that basis.
The Group recorded a net loss of $77,388,000 for the
year ended 30 June 2024 and as at balance date the
Group’s bank borrowings of $87,863,000 was recorded
within current liabilities due to a breach of covenant
that was not waived by the bank until after balance
date. Current assets exceed current liabilities by
$62,380,000. The directors have carefully considered
the ability of the Group to meet its liabilities as they
fall due and continue to operate as a going concern for
at least the next 12 months from the date the financial
statements are authorised for issue. In reaching their
conclusion the directors have considered the following
factors:
• Cash flow forecasts have been prepared for the
12 months following the date at which the Board
adopted these financial statements taking account
of the approved FY25 Budget and have concluded
that the Group will generate sufficient cash flows
to meet its liabilities as they fall due;
• The FY25 Budget and forecasts for the following
4 years have been completed and the outlook is a
return to profitability;
• The directors have made due enquiry into the
appropriateness of the assumptions underlying the
budget and forecasts; and
• There is no indication from the Bank Syndicate that
they will not continue to support the Group beyond
the current maturity terms. The Bank Syndicate
borrowing facility is $114,000,000 of which
$25,700,000 was undrawn as at 30 June 2024.
SIGNIFICANT ACCOUNTING POLICIES
Accounting policies, accounting estimates and
judgements that summarise the measurement basis
used and are relevant to the understanding of the
financial statements are provided throughout the
accompanying notes are designated by a shaded area.
STANDARDS, AMENDMENTS AND
INTERPRETATIONS ADOPTED DURING THE YEAR
There are no new or amended standards that are
issued, but not yet effective, that are expected to
have a material impact to the Group.
NOTES TO THE FINANCIAL STATEMENTS
The notes on pages 9 to 41 are an integral part of these financial statements
9
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
01. SEGMENTS
The Group has five key geographic segments as set out below:
Greater China: Revenue and related costs of our China and Hong Kong markets
ANZ: Revenue and related costs of our Australia and New Zealand markets
Rest of Asia: Revenue and related costs of our Asia markets excluding Greater China
North America: Revenue and related costs of our North America market
EMEA: Revenue and related costs of our Europe, Middle East and Africa markets
For the year ended 30 June
In thousands of New Zealand dollars
Greater ChinaANZRest of Asia
North
AmericaEMEA
Total
reportable
segments
Other
segmentsTotal
2024202320242023202420232024202320242023202420232024202320242023
Contribution
Segments
Revenue89,820109,00536,37840,77037,05931,77126,13535,6083,6285,862193,019223,01611,32211,179204,341234,195
Contribution17,20426,81310,31011,5732,7478,2914,6578,868(921)60433,99856,1492,0801,99236,07958,141
Impairment
expense
(30,648)
-
--(4,699)
---
-
-
(35,347)
-
(68)-(35,415)
-
Non attributable (other corporate expenses)(49,008)(46,398)
Impairment expense – non attributable (note 22)(28,775)
-
Other income (note 3)5,58712,177
Financial income and expenses (note 14)(9,453)(10,070)
Share of loss of equity accounted investees (note 24)(904)(844)
Net (Loss)/profit before tax(81,889)13,006
Geographical segments
30 June 202430 June 2023
In thousands of New Zealand dollarsRevenue
Non-current
assetsRevenue
Non-current
assets
Greater China89,82033,901 109,00537,050
ANZ36,747110,053 41,266108,100
Rest of Asia37,05912,335 31,771578
North America35,4294,690 45,480359
EMEA3,6283425,862190
Other countries 1,658 10,588 8118,079
Total204,341 171,909234,195154,356
Figures in the tables reflect information regularly reported to the Chief Executive Officer (CEO) on those key
segments. Segment results that are reported to the CEO include costs directly attributable to a segment as
well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly head office
expenses.
Segment information is presented in the financial statements in respect of the Group’s contribution
segments which are the primary basis of decision making. The contribution segment reporting format
reflects the Group’s management and internal reporting structure.
Performance is measured based on contribution which is a measure of profitability that the segment
contributes to the Group. Contribution is used to measure performance as management believes that
such information is most relevant in evaluating the results of certain segments. Inter-segment pricing is
determined on an arms-length basis.
PERFORMANCE
(note 22)
10
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
02. REVENUE
The Group generates revenue primarily from the sale of Mānuka honey, other bee products, and olive leaf
products to its customers (wholesale, retail and digital customers). Sales of products are recognised when
control of the goods has transferred to the customer, usually when the goods are delivered. For wholesale
sales, control passes according to individual contract terms.
All sales are net of returns and allowances, trade discounts and volume rebates.
03. OTHER INCOME
In thousands of New Zealand dollars
Note30 June 202430 June 2023
Insurance proceeds received
2,060
10,962
Gain on disposal of equity accounted investee24
1,377
-
Government grants
690
949
HoneyWorld contingent consideration release25
1,020
-
Government subsidies
21
106
Change in fair value of biological assets
336
32
Other
83
128
Total other income
5,587
12,177
Government grants
Government grants primarily relate to the New Zealand Research and Development Tax Incentive scheme
(RDTI), but also includes other government grants. The RDTI scheme provides a tax credit on eligible R&D
expenditure. The RDTI scheme includes both core R&D expenditure, as well as other expenses that support
R&D, and is recorded as non-taxable income.
Insurance Cyclone Gabrielle
In February 2023, the Group’s Hawkes Bay facility suffered extensive damage due to Cyclone Gabrielle,
a catastrophic weather event in the North Island of New Zealand. Further details of the impacts of this
weather event are disclosed in the 2023 financial statements.
Included in insurance proceeds received above is NZD 1,700,000 relating to our business interruption and
material damage policy in relation to the cyclone. At reporting date there is NZD 828,000 (2023: NZD
5,480,000) of insurance proceeds receivable (note 17) and the insurance claim is ongoing.
Insurance proceeds are recognized in the financial statements when it is virtually certain that the Group will
receive the reimbursement and the amount can be reliably estimated. The recognition is based on the net
realizable value of the claim, considering any deductibles, policy exclusions, and other recoveries expected.
Insurance proceeds receivable are recorded under sundry receivables in the statement of financial position
(note 17).
11
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
04. OPERATING CASH FLOW
Reconciliation of the profit for the year with the net cash from operating activities
In thousands of New Zealand dollars
Note
30 June 202430 June 2023
(Loss)/profit for the year
(77,388)
11,062
Adjustments for:
Depreciation
11,568
9,910
Amortisation
2,287
2,280
Impairment22
64,190
-
Share based payments
1,039
972
Forgiveness of debt
136
-
Fair value gain in biological assets
(336)
(32)
Share of loss equity accounted investees 24
904
844
(Loss)/profit adjusted for non-cash items
2,400
25,036
Items related to investing and financing activities:
Acquisition of HoneyWorld – working capital items
(1,745)
-
Disposal of equity accounted investee
(1,377)
-
Interest - net
8,385
5,427
Net loss on disposal of property, plant & equipment
113
2,505
Change in trade payables - capital related
590
934
Movement in working capital items:
Change in inventories
1,670
(3,931)
Change in trade receivables
4,343
(11,555)
Change in sundry debtors and prepayments
1,358
(5,784)
Change in trade and other payables
1,900
(4,340)
Change in employee benefits
(4,547)
888
Change in tax payable
(1,118)
161
Change in deferred tax
(5,610)
859
Change in working capital items from foreign currency
translation reserve
(243)(774)
Other movements:
Movement of deferred tax in equity
(852)
(1,289)
Foreign investor tax credits
67
93
Foreign currency reserve
(1)
(147)
Net cash from operating activities
5,333
8,083
12
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
05. EXPENSES
Administration and other operating expenses
The following items of expenditure are included in administrative expenses:
In thousands of New Zealand dollars
Note 30 June 2024
30 June 2023
Auditors’ remuneration:
To KPMG for audit services (i)
497
411
To KPMG for GHG inventory emissions limited assurance
75
-
To KPMG for tax services
-
5
To KPMG for global mobility
18
-
To Mercer & Hole (UK auditors)
39
24
To Sejong (Korea auditors)
28
-
Doubtful debts recovered
(72)
(178)
Bad debts written off
68
187
Net loss on property, plant and equipment disposals
113
2,505
Change in fair value of contingent consideration25
164
-
Restructure costs
568
164
Directors fees
605
605
Directors – other expenses
18
18
Other legal and professional expenses
612
628
(i) Audit services include fee for the annual audit of the financial statements of the Group and its foreign
subsidiaries based in China and Hong Kong and the review of the interim financial statements.
Research and development
The Group considers expenditure to be research and development if it meets the definition according to the
New Zealand RDTI scheme. This expenditure is included within cost of goods sold and operating expenses and
recognised in the income statement in the year that it is incurred.
13
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
06. PERSONNEL EXPENSES
In thousands of New Zealand dollars
Note30 June 202430 June 2023
Wages and salaries
46,615
46,824
KiwiSaver – employer contribution
880
919
Movement in long-service leave provision
8
21
Equity settled share based payment transactions30
1,038
972
Total personnel expenses
48,541
48,736
07. TAX
Tax expense
In thousands of New Zealand dollars
30 June 202430 June 2023
(Loss)/profit for the year
(77,388)
11,062
Total income tax expense
(4,501)
1,944
Net profit before tax
(81,889)
13,006
Tax at 28% NZ company tax rate
(22,929)
3,642
Tax effect of overseas income
201
(638)
Non-deductible or non-assessable items
17,885
(715)
Removal of tax depreciation on commercial buildings
(i)
1,717
-
Other
(1,300)
(169)
Prior period adjustments
(75)
(176)
Total income tax expense
(4,501)
1,944
Tax expense is represented by:
Current tax
1,825
2,374
Deferred tax
(6,326)
(430)
Total income tax expense
(4,501)
1,944
Imputation credits available
4,577
5,580
(i) Comvita New Zealand will no longer be able to claim tax depreciation on buildings, with estimated useful
lives of 50 years or more, from its income tax year ending 30 June 2025. This has resulted in an increased
deferred tax liability in respect of the buildings of $1,717,373.
14
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
Deferred tax
In thousands of
New Zealand dollars
As at
30 June 2024
Recognised
directly in
profit or loss
Recognised
in other
comprehensive
income
Recognised
directly in
equity
30 June 2023
Property, plant & equipment
(4,171)
(1,655)--(2,516)
Intangible and biological assets
4,075
5,481--(1,406)
Inventory
2,764
(674)--3,438
Provisions and accruals
580
(418)--998
Derivatives
(243)
-(463)-220
Other items
752
130219(129)532
Investments
838
792--46
Tax losses
4,051
2,327--1,724
Net tax assets/(liabilities)
8,646
5,983(244)(129)3,036
No deferred tax assets have been recognised in respect of certain intangible assets ($587,718),
capital losses in Australia ($3,296,997) or losses on acquisition in the UK ($2,335,975).
Income tax expense comprises current and deferred tax. Income tax expense is recognised in the income
statement except to the extent that it relates to items recognised in other comprehensive income, in which
case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous
periods.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is measured at the tax rates that are expected to be applied to the temporary
differences when they reverse, based on the laws that have been enacted or substantively enacted by the
reporting date.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be
available against which the temporary difference can be utilised. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be
realised.
08. SUPPLEMENTARY NON-GAAP INFORMATION – EBITDA PRE-IMPAIRMENT
Earnings before interest, tax, depreciation, and amortisation (EBITDA) pre-impairment is a non-GAAP measure.
We monitor this as a key performance indicator and believe it assists investors in assessing the performance of
the core operations of our business.
In thousands of New Zealand dollars
30 June 202430 June 2023
(Loss)/profit before tax
(81,889)
13,006
Add back: Net finance cost
8,383
5,427
EBIT
(73,506)
18,433
Add back: Depreciation and amortisation
13,855
12,190
Add back: Impairment and other asset write-downs
64,190
-
EBITDA pre-impairment
4,539
30,623
07. TAX (continued)
15
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
FUNDING
09. CAPITAL AND RESERVES
Ordinary and partly paid redeemable share capital
Ordinary shares issued are fully paid and have no par value. The holders of ordinary shares are entitled to
receive dividends and are entitled to one vote per share at meetings of the Company. All ordinary shares
rank equally with regard to the Group's residual assets.
In thousands of shares
Note30 June 202430 June 2023
On issue at beginning of the year
69,893
69,731
Share issue - employee share schemes30
332
258
Acquisition of treasury stock
-
(96)
Ordinary shares on issue at end of the year
70,225
69,893
Treasury Stock
In thousands of shares
30 June 202430 June 2023
Treasury stock at beginning of the year492654
Acquired on market-96
Issued - employee share schemes(323)(258)
Total treasury stock at end of the year169492
Capital management
The Group’s capital includes share capital, reserves and retained earnings. The Board’s policy is to maintain
a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. The Board of Directors monitors the geographic spread of shareholders, as
well as the return on capital.
Public share offerings and private offerings are made, where applicable. This and acquisitions are key to
ensuring the future development of the business.
The Board has an Employee Share Scheme, a Leader Share Purchase and a Performance Share Rights
Scheme to ensure that the leadership team and staff incentives are aligned with shareholders’ interests.
Other than the banking requirements, neither the Company nor any of its subsidiaries are subject to
externally imposed capital requirements.
16
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
10. EARNINGS PER SHARE
In thousands of shares
30 June 202430 June 2023
Weighted average number of ordinary shares at the end of the year70,14169,847
Basic earnings per share (NZ cents)(110.33)15.84
In thousands of shares
Weighted average number of diluted shares at end of the year70,98870,616
Diluted earnings per share (NZ cents)(110.33) 15.66
The Group presents basic and diluted earnings per share (“EPS”) data for its ordinary shares. Basic EPS
is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the
weighted average number of ordinary shares outstanding during the year. Diluted EPS is determined by
adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of
ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise share
entitlements granted to employees.
11. DISTRIBUTIONS
Dividends
In thousands of New Zealand dollars
30 June 202430 June 2023
The following dividends were declared and paid by the Group:
Final 2022 dividend (3.0 cents per share)-2,158
Interim 2023 dividend (2.5 cents per share)-1,803
Final 2023 dividend (3.0 cents per share)2,173-
Interim 2024 dividend (1.0 cents per share)724-
Total2,8973,961
17
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
12. BORROWINGS
Terms of borrowings
In thousands of New Zealand
dollars
Facility
Local
Currency
CurrencyNominal
Interest
rate
MaturityCarrying
Amount
Carrying
Amount
Westpac NZ/ANZ:20242023
Revolving credit facility44,000NZD7.33%July 202530,30015,500
Revolving credit facility35,000NZD7.48%March 202635,00035,000
Revolving credit facility 35,000NZD7.68%March 202723,00015,000
Westpac NZ:
Overdraft facility1,000NZD----
Deferred finance costs(437)(560)
Total borrowings - non-current-64,940
Total borrowings - current87,863-
The Group has a NZD 1 million overdraft facility for general corporate purposes including managing it’s
liquidity risk (see note 26).
Covenants and security
The Group was in compliance with all banking covenants during the year and as at 30 June 2024, except for
one covenant at 30 June 2024. Subsequent to year-end, the banking syndicate have waived their rights to
take action in respect of the breach. In accordance with NZ IAS 1, Presentation of Financial Statements, as
this was waived after 30 June 2024, all term debt has been classified as current at 30 June 2024.
With respect to FY25, the Group are currently in discussions to agree a covenant structure that will be
acceptable to both the banking syndicate and the Group. The revised bank covenant structure will be
confirmed in September.
The NZD 114 million syndicated facility with Westpac New Zealand Limited and ANZ is secured by way of
a General Security Agreement over assets of Comvita Limited, Comvita New Zealand Limited, Comvita
Holdings Pty Limited, Comvita Australia Pty Limited and Comvita UK Limited.
Borrowings are recognised initially at fair value less financing costs and subsequently at amortised cost using
the effective interest rate method. Fees paid on the establishment of loan facilities are included as part of
the carrying amount of the loans and borrowings and are amortised over the maturity period of the loan.
13. CASH AND CASH EQUIVALENTS
In thousands of New Zealand dollars
30 June 202430 June 2023
Cash8,15611,554
Less debt (87,863)(64,940)
Net debt(79,707)(53,386)
Cash and cash equivalents comprise cash balances and demand deposits. Bank overdrafts that are
repayable on demand, and form an integral part of the Group’s cash management, are included as a
component of cash and cash equivalents for the purpose of the statement of cash flows.
18
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
14. FINANCE INCOME AND EXPENSES
In thousands of New Zealand dollars
30 June 202430 June 2023
Interest income347313
Dividend income-1
Finance income347314
Interest expense on financial liabilities measured at amortised cost(8,733)(5,740)
Net foreign exchange loss(1,067)(4,644)
Finance expenses(9,800)(10,384)
Net finance expenses(9,453)(10,070)
Interest expense on borrowings, bank and facility fees and transaction costs are recognised in the income
statement over the period of the borrowings, using the effective interest rate method. Interest expense on
lease obligations are also recognised in the interest expense above in accordance with NZ IFRS 16.
19
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
WORKING CAPITAL
15. INVENTORY
In thousands of New Zealand dollars
30 June 202430 June 2023
Raw materials67,18982,426
Work in progress2,6206,104
Finished goods64,60947,558
Total inventory134,418136,088
Inventory disposed of and written off during the year has been recognised within cost of goods sold -
$442,000 (2023: $4,381,000, including $3,681,000 related to Cyclone Gabrielle).
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the
weighted average principle, and includes expenditure incurred in acquiring the inventories and bringing them
to their existing location and condition. In the case of manufactured inventories and work in progress, cost
includes an appropriate share of production overheads based on normal operating capacity. Net realisable
value is the estimated selling price in the ordinary course of business, less the estimated costs of completion
and selling expenses.
Honey created by biological assets (bees, note 23) is transferred to inventory at fair value, by reference to
market prices for honey.
16. TRADE RECEIVABLES
In thousands of New Zealand dollars
30 June 202430 June 2023
Gross receivable35,12639,543
Provision for doubtful and impaired receivables(96)(170)
Total trade receivables35,03039,373
The status of trade receivables at the reporting date is as follows:
In thousands of
New Zealand dollars
Gross receivable
2024
Impairment
2024
Gross receivable
2023
Impairment
2023
Not past due31,769-36,245-
Past due 0-30 days1,156-2,249-
Past due 31-60 days1,331-385-
Past due 61-365 days870(96)664(170)
Total35,126(96)39,543(170)
20
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
17. SUNDRY RECEIVABLES
In thousands of New Zealand dollars
Note30 June 202430 June 2023
Loan receivable – Leadership Team 312,7292,817
Prepayments 7,2386,380
Insurance proceeds receivable 38285,280
Other receivables4,8772,877
Total sundry receivables - current15,22217,354
Loan receivable - CEO31450450
Total sundry receivables - non-current 450450
18. TRADE AND OTHER PAYABLES
In thousands of New Zealand dollars
Note30 June 202430 June 2023
Trade creditors11,05810,268
Accruals14,07016,946
Employee benefits2,4547,009
Medibee guarantee244,158-
HoneyWorld acquisition - deferred payable253,028-
HoneyWorld contingent consideration 251,020-
Director fee accruals3496
Trade and other payables - current35,82234,319
Employee benefits296288
Trade and other payables - non current296288
21
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
19. PROPERTY, PLANT AND EQUIPMENT
In thousands of
New Zealand dollars
LandBuildingsPlant &
machinery
VehiclesBearer
plants
Office
equipment,
furniture &
fittings
Capital
WIP*
Total
Cost
Balance at 30 June 202211,52128,02030,6562,7086,1628,66812,997100,732
Additions/transfers4,2001,7583,7051181,6821,0692,69015,222
Disposals(349)(1,197)(3,262)(109)-(450)-(5,367)
Effect of movements in
exchange rates
(37)(25)(62)(16)(101)204(217)
Balance at 30 June 202315,33528,55631,0372,7017,7439,30715,691110,370
Additions/transfers1,9168832,364734,261428(2,412)7,513
Disposals-(55)(389)(150)-(566)87(1,073)
Effect of movements in
exchange rates
10915-(1)(7)-27
Balance at 30 June 202417,26129,39332,0272,62412,0049,16213,366116,837
Accumulated depreciation and impairment
Balance at 30 June 2022-(8,958)(18,196)(1,802)(604)(6,204)-(35,764)
Depreciation -(1,164)(1,801)(253)(131)(1,035)-(4,384)
Disposals-3601,74577-443-2,625
Effect of movements in
exchange rates
-1134610(35)-26
Balance at 30 June 2023-(9,751)(18,218)(1,972)(725)(6,831)-(37,497)
Depreciation -(1,218)(2,179)(184)(310)(999)-(4,890)
Impairment (note 22)--(900)---(2,500)(3,400)
Disposals-40246150-554-990
Effect of movements in
exchange rates
-(4)(1)(1)(1)2-(6)
Balance at 30 June 2024-(10,933)(21,052)(2,008)(1,036)(7,274)(2,500)(44,803)
Carrying amount
At 30 June 202211,52119,06212,4609065,5582,46412,99764,968
At 30 June 202315,33518,80512,8197297,0182,47615,69172,873
At 30 June 202417,26118,46011,97561710,9671,88810,86672,034
*$10,600,000 of capital work in progress relates to the development of Mānuka forests.
ASSETS
22
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
Depreciation
Depreciation is recognised in the income statement on a straight-line basis over the estimated useful life of
each part of an item of property, plant and equipment. Land is not depreciated. Depreciation is allocated to
cost of sales, marketing expenses, selling and distribution expenses, and administrative and other operating
expenses.
The estimated useful life for the current and comparative periods are as follows:
• Buildings up to 50 years
• Plant and machinery 2 - 20 years
• Vehicles 4 - 15 years
• Office equipment, furniture and fittings 2 - 15 years
• Bearer plants 20 - 100 years
• Mānuka Forest 15 - 22 years
Depreciation methods, useful life and residual values are reassessed at the reporting date.
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and direct labour, any other costs directly attributable to
bringing the asset to a working condition for its intended use, and the costs of dismantling and removing
the items and restoring the site on which they are located. Purchased software that is integral to the
functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for
as separate items (major components) of property, plant and equipment.
Subsequent expenditure
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount
of the item if it is probable that the future economic benefits embodied within the part will flow to the
Group and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and
equipment are recognised in the income statement as incurred.
19. PROPERTY, PLANT AND EQUIPMENT (continued)
23
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
20. RIGHT OF USE ASSETS AND LEASES
The Group leases warehouses, retail stores, administration premises, vehicles, and land used for hive
placements referred to as Mānuka forests in the table below.
BuildingsVehiclesMānuka
forests
Total
In thousands of New Zealand dollars
Balance at 30 June 20224,9741,0396,09912,112
Additions1,7003,2916595,650
Modifications1,869301-2,170
Depreciation(4,021)(1,061)(350)(5,432)
Disposals-(58)-(58)
Effect of movement in exchange rates(35)--(35)
Balance at 30 June 20234,4873,5126,40814,407
Additions4,0167043,2047,924
Modifications4,828321334,993
Depreciation(4,411)(982)(489)(5,882)
Disposals(758)(365)(93)(1,216)
Balance at 30 June 20248,1622,9019,16320,226
Amounts recognised in the statement of comprehensive income
In thousands of New Zealand dollars
30 June 202430 June 2023
Interest on lease liabilities955639
Variable lease payments not included
in the measurement of lease liabilities
6,1265,274
Expenses relating to short-term leases622594
Expenses relating to leases of low-value assets,
excluding short-term leases of low-value assets
2626
During the year ended 30 June 2024, $399,000 of depreciation and $513,000 of interest related to
Mānuka forest leases was capitalised into Mānuka forest assets (2023: $197,000 and $227,000).
Lease liabilities
As at 30 June 2024, the weighted average rate applied was 7.3% (2023: 6.3%). Total cash outflow for right of
use leases for the year ended 30 June 2024 was $7.4 million (2023: $5.6m).
Maturity analysis - contractual undiscounted cash flow
Non-cancellable lease rentals ae payable as follows:
In thousands of New Zealand dollars
30 June 202430 June 2023
Less than one year
7,0805,230
Between one and five years10,3768,160
Greater than five years
6,5237,053
Total23,97920,443
The Group assesses at lease commencement whether it is reasonably certain to exercise extension options
where included in the contract, and where it is reasonably certain, the extension period has been included in
the lease liability calculation.
24
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
21. INTANGIBLE ASSETS
In thousands of
New Zealand dollars
GoodwillIntellectual
property and other
intangible assets
Software*
Total
Cost
Balance at 30 June 202226,75117,6928,29852,741
Additions-3863,0393,425
Disposals--(130)(130)
Effect of movements in exchange rates681(602)(5)74
Balance at 30 June 202327,43217,47611,20256,110
Additions4,6995,16285210,713
Disposals--(2)(2)
Effect of movements in exchange rates34-236
Balance at 30 June 202432,16522,63812,05466,857
Accumulated amortisation and impairment
Balance at 30 June 2022-(8,196)(4,143)(12,339)
Amortisation -(1,263)(1,017)(2,280)
Disposals--126126
Effect of movements in exchange rates-166(29)137
Balance at 30 June 2023-(9,293)(5,063)(14,356)
Amortisation -(1,485)(999)(2,484)
Impairment (note 22)(32,165)(5,016)(5,497)(42,678)
Disposals--22
Effect of movements in exchange rates-12(1)11
Balance at 30 June 2024(32,165)(15,782)(11,558)(59,505)
Carrying amount
At 30 June 202226,7519,4964,15540,402
At 30 June 202327,4328,1836,13941,754
At 30 June 2024-6,8564967,352
* Software additions materially relate to customised software code where Comvita retains control of the
code and its future benefits.
25
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
Amortisation
Amortisation is recognised in the income statement on a straight-line basis over the estimated useful lives
of intangible assets, other than goodwill, from the date that they are available for use. Amortisation is
allocated to cost of sales, marketing expenses, selling and distribution expenses, and administrative and
other operating expenses.
The estimated useful life for the current and comparative periods are as follows:
• Intellectual property and other intangible assets 3 – 20 years
• Capitalised development costs 2 – 5 years
• Software 2 - 10 years
The estimation of useful lives of intangible assets such as distribution networks have been based on
historical experience. The useful lives are reviewed at least once per year and adjustments to useful lives are
made when considered necessary.
Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill
and brands, is recognised in the income statement when incurred.
Goodwill
Goodwill that arises on the acquisition of subsidiaries and other business combinations is presented within
intangible assets. Goodwill is measured at cost less accumulated impairment losses.
21. INTANGIBLE ASSETS (continued)
26
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
22. GOODWILL AND ASSET IMPAIRMENT TESTING
Impairment expense summary
During the period, the Group identified impairments related to financial assets. Subsequent to this, given
the identification of impairment indicators, the Group has undertaken an assessment of the carrying
value of its CGUs and non-financial assets. This assessment was supported by an independent valuation
completed in accordance with Advisory Engagement Standard 2. As a result of this assessment, various
impairments have been recognised and are summarised as follows:
In thousands of New Zealand dollars
Notes30 June 202430 June 2023
Financial assets
Loan to equity accounted investee - Apiter24a1,259-
Loan to equity accounted investee - Medibee24d272-
Medibee guarantee impairment24d4,158-
Non-financial assets
Investment in equity accounted investee - Apiter24a7,918-
Investment in equity accounted investee – Caravan Honey24c4,251-
Software 215,497-
Software in prepayments255-
Greater China CGU
Goodwill25,632-
China distribution network asset - other intangible assets215,015-
Southeast Asia CGU
Goodwill 4,699-
Apiary CGU
Goodwill1,766-
Plant & Machinery19900-
Mānuka forest assets – capital work in progress192,500-
Other CGU
Goodwill 68-
Total64,190-
Software
A software impairment of $5,752,000 has been recognised as the software will no longer be utilised or
provide economic benefits as a result of transformation in the digital market.
Greater China and South East Asia CGUs
The Greater China and South East Asia CGUs have been impacted by a down-turn in consumer demand
in Asian markets, particularly China, that is expected to result in a period of low growth and increased
pressure to grow sales volume. This has resulted in a goodwill impairment of $25,632,000 and $4,699,000
respectively. In addition, the China distribution network asset of $5,016,000 has been impaired to nil.
Apiary CGU
There is currently excess supply over demand for Mānuka Honey, which has put downwards process on
Mānuka Honey pricing. This has impacted the revenue stream for this CGU in the short term and resulted in
a goodwill impairment of $1,766,000, a plant & machinery impairment of $900,000 and a Mānuka Forest
asset impairment of $2,500,000.
27
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
Impairment testing
For the purpose of impairment testing, goodwill is allocated to the Group’s CGUs which represent the lowest level
within the Group at which the goodwill is monitored for internal management purposes. The aggregate carrying
amounts of goodwill allocated to each CGU are as follows:
30 June 2024 30 June 2023
In thousands of New Zealand dollars
Greater China-25,597
South East Asia--
Apiaries-1,766
Other-68
Total goodwill-27,431
Greater China CGU:
The recoverable amount of the Greater China CGU containing goodwill has been determined on a value in use
basis using a discounted cash flow approach. Projections are based on the budget and value in use forecasts
approved by the Board of Directors.
Key assumptions:
30 June 202430 June 2023
Annual revenue growth rate(8.2%) to 1.9%4.7% to 17.3%
Post tax discount rate 8.5%12.1%
Terminal growth rate2.0%2.0%
Value in Use recoverable amount:
30 June 2024
In thousands of New Zealand dollars
Recoverable amount33,600
Sensitivity to changes in key assumptions
30 June 202430 June 2023
In thousands of New Zealand dollars
The recoverable amount was more / (less) than the
carrying value by
(30,600)115,500
If projected earnings before interest and tax (“EBIT”) is
reduced by 10% each year, the recoverable amount would
be more / (less) than the carrying value by
(36,300)89,000
The post-tax discount rate for the recoverable value to
match the carrying value
5.0%30.6%
22. GOODWILL AND IMPAIRMENT TESTING (continued)
28
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
22. GOODWILL AND IMPAIRMENT TESTING (continued)
Apiaries:
The recoverable amount of the Apiary CGU containing goodwill has been determined on a value in use basis
using a discounted cash flow approach. Projections are based on the budget and value in use forecasts
approved by the Board of Directors.
Key assumptions:
30 June 202430 June 2023
Annual revenue growth(8.7%) to 30.2%0% to 35.9%
Post tax discount rate
10.8%10.9%
Terminal growth rate
2.0%2.0%
Value in Use recoverable amount:
30 June 2024
In thousands of New Zealand dollars
Recoverable amount31,400
Sensitivity to changes in key assumptions
30 June 202430 June 2023
In thousands of New Zealand dollars
The recoverable amount was more / (less) than the
carrying value by
(5,200)
28,320
If projected earnings before interest and tax (“EBIT”) is
reduced by 10% each year, the recoverable amount would
be more / (less) than the carrying value by
(9,800)22,288
The post-tax discount rate for the recoverable value to
match the carrying value
9.9%17.5%
29
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
South East Asia:
The recoverable amount of the South East Asia CGU containing goodwill has been determined on a value
in use basis using a discounted cash flow approach. Projections are based on the budget and value in use
forecasts approved by the Board of Directors.
Key assumptions:
30 June 202430 June 2023
Annual revenue growth4.0% to 10.2%n/a
Post tax discount rate18.0%n/a
Terminal growth rate2.0%n/a
Value in Use recoverable amount:
In thousands of New Zealand dollars
30 June 2024
Recoverable amount4,200
Sensitivity to changes in key assumptions
30 June 202430 June 2023
In thousands of New Zealand dollars
The recoverable amount was more / (less) than the carrying value by(4,700)n/a
If projected earnings before interest and tax (“EBIT”) is reduced by
10% each year, the recoverable amount would be more / (less) than
the carrying value by
(5,300)n/a
The post-tax discount rate for the recoverable value to match the
carrying value
10.7%n/a
A Cash Generating Unit (“CGU”) is the smallest identifiable asset group that generates cash flows that
are largely independent from other assets and groups. Impairment reviews are performed by management
annually to assess the carrying values of the CGUs containing goodwill. The recoverable amount of a CGU is
determined based on value in use calculations. In assessing the value in use, the estimated future cash flows
for a five-year period are discounted to their present value using a post-tax discount rate that reflect current
market assessments of the time value of money and risks specific to that asset. An impairment is recognised
when the recoverable amount is less than the carrying value.
22. GOODWILL AND IMPAIRMENT TESTING (continued)
30
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
23. BIOLOGICAL ASSETS
In thousands of New Zealand dollars
30 June 202430 June 2023
Bees4,2063,854
Olive leaf600583
Total biological assets4,8064,437
Bees
In thousands of New Zealand dollars
30 June 202430 June 2023
Balance at beginning of the year3,8543,315
Fair value increase697304
Net movement in operational hives(345)235
Balance at the end of the year4,2063,854
Number of operational hives
30 June 202430 June 2023
Balance at beginning of the year18,86517,553
Net movement in operational hives(1,647)1,312
Balance at the end of the year17,21818,865
Value per hive$210$178
Biological assets comprise bees and olive leaf, and are measured at fair value less costs to sell. Fair value of
biological assets is determined annually and is recognised in the income statement.
The fair value of bees is determined by reviewing the operational hives in use as well as ensuring the value per
hive is in line with guidance provided by the Ministry of Primary Industries (a level 2 valuation). The fair value
of olive leaf is determined using input costs (a level 3 valuation). The Group is exposed to some risks related
to owning bees and olive leaf, primarily the risk of damage from climatic changes and diseases. The Group
has processes in place aimed at monitoring and mitigating those risks.
Olive leaf is transferred from biological asset to inventory at fair value at the date of harvest.
31
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
24. INVESTMENTS
In thousands of New Zealand dollars
30 June 202430 June 2023
Equity accounted investees-10,226
Investment in unlisted shares-8
Total investments-10,234
A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to
the net assets of the arrangements, rather than the rights to its assets and obligations for its liabilities.
Associates are those entities in which the Group has significant influence, but it does not have control or
joint control over the financial and operating policies. Associates and joint ventures are accounted for using
the equity method (equity accounted investments). The income statement includes the Group’s share of the
income and expenses of equity accounted investments.
An assessment of the carrying value of equity accounted investments is performed at least annually and
considers objective evidence for impairment on each investment. Objective evidence includes observable
data on the investment, the status or context of markets, management’s own view of fair value, and
long-term investment intentions. The assessment also requires judgements about the expected future
performance and cash flows of the investment.
Investments in equity accounted investees comprises:
Country of
Incorporation
Ownership
Interest
Held
Balance
Date
Principal
Activity
Apiter S.A “Apiter”Uruguay32%31 July
Manufacturing, selling
and distribution
Makino Station Limited “Makino”New Zealand-30 June
Shareholding ceased
20 June 2024
Caravan Honey Company
"Caravan Honey"
U.S.A50%31 December
Development and
commercialisation
of products
Medibee Pty Limited “Medibee”Australia50%30 June Apiary
a) Apiter
In January 2023, Comvita agreed to supply additional funding to Apiter in exchange for an increase in
ownership from 20% holding to 32% holding. The additional funding was completed in two phases: an initial
loan of USD 545,000 in January 2023 and an additional USD 1,445,000 when the share issuance procedures
were completed in Uruguay, at which point the initial loan converted to equity. On 19 October 2023, the
share issuance procedures and additional funding phase was completed.
An impairment of $7,918,000 has been recognised related to the Apiter investment, reducing the carrying
value to nil at 30 June 2024. In addition, an impairment expense of $1,259,000 has been recognised against
the loan to Apiter, reducing the carrying value to nil. This investment has been impacted by South America
geopolitical unrest and persistent high inflation which has impacted Government spending and Apiter
revenue growth strategies.
b) Makino
On 20 June 2024, Comvita sold its share in the Makino joint venture to the other shareholder of Makino
(the purchaser). As part of the transaction the loan to Makino was assigned to the Purchaser. A gain on
disposal of $1,377,000 was recognised in other income (note 3).
c) Caravan Honey
An impairment of $4,251,000 has been recognised related to the Caravan Honey investment, reducing
the carrying value to nil at 30 June 2024. This investment is still in the development stage and will require
further investment to launch commercially. Due to uncertainty of securing future funding, this investment
has been impaired.
32
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
24. INVESTMENTS (continued)
d) Medibee
Medibee Apiaries has a funding arrangement with HSBC and Comvita has signed a several guarantee
for its share of the loan facility, which is AUD 4,700,000 at balance date.
During the year, Comvita agreed to loan Medibee an additional $272,000 which was immediately impaired
to nil. The guarantee has been valued at 30 June 2024 using the expected credit loss method and an
impairment expense and a corresponding liability has been recognised of $4,158,000.
Carrying value of investment in equity accounted investees
In thousands of New Zealand dollars
30 June 202430 June 2023
Balance at 1 July 10,22610,957
Additional investment (Apiter)3,420-
Disposal (Makino)(555)-
Share of loss(904) (844)
Foreign exchange movements (18) 113
Impairment(12,169)-
Balance at 30 June
-10,226
Loans to equity accounted investees
In thousands of New Zealand dollars
Loan and
interest
receivable
Interest
accrued
Interest
rate
2024
Apiter--3.50%
2023
Makino3,9391615.34%
Apiter2,119533.50%
6,058214
All loans to equity accounted investees are repayable at the discretion of shareholders.
Transactions with equity accounted investees
In thousands of New Zealand dollars
Sale of goods
and services
Purchases of goods
and services
Transaction
value
Balance
due from
Transaction
value
Balance
owing to
2024
Makino 45
-85471
Apiter -32--
2023
Makino 13-1,45742
Apiter -32--
33
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
25. BUSINESS COMBINATION
Acquisition of the assets of Swift Health Food (Singapore) Pte Ltd
Acquired entity
On 5 July 2023, Comvita Singapore Pte Ltd, (a subsidiary of Comvita Limited), acquired the assets of Swift
Health Food (Singapore) Pte Ltd (“the Acquired Business”), a specialised honey retail business located in
Singapore, trading as HoneyWorld. The acquisition is accounted for as a business combination under IFRS 3,
Business Combinations in the year ended 30 June 2024.
Purchase consideration
The acquisition was made in exchange for the following consideration:
In thousands of New Zealand dollars
Initial cash payment7,294
Deferred amounts payable 3,011
Fair value of contingent consideration1,868
12,173
Fair value of identifiable assets and liabilities
The fair values of the identifiable assets acquired and liabilities assumed have been finalised based on
independent valuation and other relevant information available:
In thousands of New Zealand dollars
Inventory2,530
Intangible asset – trademarks and tradenames4,167
Intangible asset – restraint of trade168
Property, plant and equipment34
Deferred tax asset708
Employee liabilities(53)
Customer loyalty scheme(53)
Add: goodwill (note 21) 4,672
Net assets acquired12,173
Goodwill
Goodwill represents the excess of the consideration transferred over the fair value of the net identifiable
assets acquired. The goodwill is attributable to the workforce, supplier relationships and the profitability of
the acquired business. The goodwill acquired is not deductible for tax purposes.
Contingent consideration (significant estimate)
NZD 1,868,000 of contingent consideration was based on the achievement of specific performance targets
and was payable in 2024 and 2025, split evenly over two years.
The fair value of the contingent consideration was estimated by calculating the present value of the future
expected cash flows. The estimates are based on a probability adjusted discount rate of 19.3%.
As at 30 June 2024 the contingent consideration payable at 30 June 2024 has been derecognised, as
the criteria was not met. A gain of NZD 1,020,000 was included in other income (note 3). The contingent
consideration payable as at 30 June 2025 has been revalued at 30 June 2024 and the difference in fair
value of NZD 164,000 has been recognized as a change of fair value of contingent consideration in other
expenses (note 5).
Revenue and profit contribution
The Acquired Business contributed revenues of NZD 12,818,000 and a loss of NZD 77,000 to the Group
for the period from 5 July 2023 to 30 June 2024.
34
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
The Group is exposed to market, liquidity, and credit risks. The Group’s financial risk management system
mitigates exposure to these risks by ensuring that material risks are identified, the financial impact is
understood, and tools and limits are in place to manage exposures. Written policies provide the framework
for the Group’s financial risk management system.
26. MARKET RISK
Foreign exchange risk
The Group is exposed to movements in foreign exchange rates through its receipts and payments that are
denominated in a currency other than the New Zealand Dollar. The currencies in which transactions are
primarily denominated are Chinese Yuan, United States Dollars, Australian Dollars, Hong Kong Dollars,
Japanese Yen, Euros, and British Pounds.
The Group manages this risk using a mix of forward foreign exchange contracts, collars and options to fix
future cash flow receipts in New Zealand dollars. At any point in time the Group hedges between 40% to
100% of its estimated net foreign currency receipts expected to be received over the following 12 months,
and between 0% to 50% in respect of 12-to-24-month net foreign currency receipts.
As at reporting date the Group had the following foreign exchange contracts outstanding:
In thousands of New Zealand dollars
30 June 202430 June 2023
Forward exchange contracts - asset/(liability)
866(837)
The Group’s exposure to foreign currency risk at the reporting date was as follows:
In thousands of New Zealand dollars
30 June 2024
RMBAUDGBPHKDUSDOther
Trade receivables14,5073,4372694505,1404,673
Trade and other payables(2,849)(1,704)(325)(1,470)(1,815)(5,340)
Gross statement of financial position exposure11,6581,733(56)(1,020)3,325(667)
Forward exchange contracts - nominal amount22,8577,9885197,45929,238881
30 June 2023
RMBAUDGBPHKDUSDOther
Trade receivables13,2535,0882515657463,167
Trade and other payables(3,739)(1,807)(851)(1,210)(2,607)(466)
Gross statement of financial position exposure9,5143,281(600)(645)(1,861)2,701
Forward exchange contracts - nominal amount24,7388,8771,27712,24451,4322,091
Interest rate risk
The Group has fixed and floating rate debt and is exposed to movements in interest rates. For fixed rate
debt the exposure is to falling interest rates as the Group could have secured that debt at lower rates, while
for floating rate debt there is uncertainty of future cash interest payments.
FINANCIAL RISKS
35
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
The Group manages these risks using interest rate swaps to ensure that the total debt portfolio has an
appropriate amount of fixed and floating rate exposure. The risk is monitored by assessing the notional
amount of debt on a fixed and floating basis and ensuring this is in accordance with set policies.
As at the reporting date, the Group had the following interest rate swap contracts outstanding:
In thousands of New Zealand dollars
30 June 202430 June 2023
Interest rate swaps asset/(liability)
-48
Sensitivity analysis
In managing interest rate risks the Group aims to reduce the impact of short-term fluctuations on the
Group’s earnings. Over the longer-term, however, permanent changes in interest rates will have an impact
on profit. At 30 June 2024 it is estimated that a general increase of one percentage point in interest rates
would decrease the Group’s profit before income tax by approximately $963,000 (30 June 2023: $778,000).
27. LIQUIDITY RISK
Liquidity risk is the risk of having insufficient liquid assets to pay the Group's debts as they fall due. The
Group manages the risk by monitoring forecast cash flows and holding sufficient undrawn bank facilities to
meet the Group's needs.
The contractual maturity of the Group's funding is as follows:
In thousands of New Zealand dollars
Contractual cash
flows
less than
1 year
1-2 years2-5 years
30 June 2024
Borrowings(99,885)(6,605)(68,988)(24,292)
Trade and other payables(36,118)(36,118)--
Derivatives - inflow70,59451,39419,200-
Derivatives - outflow(69,727)(50,906)(18,821)-
Total(135,136)(42,235)(68,609)(24,292)
30 June 2023
Borrowings(78,761)(4,959)(20,081)(53,721)
Trade and other payables(34,607)(34,607)--
Derivatives - inflow100,86553,54339,4807,842
Derivatives - outflow(101,659)(54,863)(39,175)(7,621)
Total(114,162)(40,886)(19,776)(53,500)
26. MARKET RISK (continued)
36
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
28. CREDIT RISK
The Group’s exposure to credit risk is mainly influenced by its trade debtors and banking counterparties
in the normal course of business. To minimise credit risk exposure, the Group reviews each new customer
for credit worthiness and investments and derivatives are only entered into with reputable institutions. At
balance date, the Group’s bank accounts were held with banks with acceptable credit ratings determined
by recognised credit agencies. The Group’s policy is to provide financial guarantees only to subsidiaries and
equity accounted investees.
The majority of revenue is generated from retailers and consumers and there is some geographical
concentration of credit risk in China. In order to determine which customers are classified as having payment
difficulties, the Group applies a mix of duration and frequency of default. Aging trade receivables are
reviewed monthly by management.
The carrying amount of financial assets represents the maximum credit exposure.
The maximum exposure to credit risk for trade receivables at the reporting date by geographic region was:
In thousands of New Zealand dollars
30 June 202430 June 2023
Australia4,4576,015
China15,31513,366
New Zealand7,50815,298
United States2,592636
EMEA357438
Hong Kong554668
South East Asia2,626-
Other regions1,621 2,952
Total35,03039,373
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method and adjusted for credit impairment losses.
The Group assesses on a forward-looking basis the expected credit losses associated with its trade
receivables. The Group applies the simplified approach permitted by IFRS 9, which requires expected
lifetime losses to be recognised from initial recognition of the receivables. In assessing credit losses on trade
receivables the Group considers both quantitative and qualitative inputs. Quantitative data includes past
collection rates, industry statistics, ageing of receivables, and trading outlook. Qualitative inputs include
past trading history with the Group.
37
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
29. FINANCIAL INSTRUMENTS
The Group classifies its financial assets and liabilities into two categories:
• those to be measured at amortised cost
• those to be measured a fair value (either through profit and loss (FVPL) or through comprehensive
income (FVOCI)
Non-derivative financial assets and liabilities
Non-derivative financial instruments comprise investments in equity securities, trade and other receivables,
cash and cash equivalents, loans and borrowings, and trade and other payables.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at FVPL,
any directly attributable transaction costs. A financial instrument is recognised if the Group becomes a
party to the contractual provisions of the instrument. Financial assets are derecognised if the Group’s
contractual rights to the cash flows from the financial assets expire or if the Group transfers the financial
asset to another party without retaining control or substantially all risks and rewards of the asset.
Non-derivative financial assets and liabilities are measured initially at fair value plus directly attributable
transaction costs and subsequently measured at amortised cost and subject to regular review for
impairment.
Derivative financial assets and liabilities
The Group uses derivative financial instruments to hedge its exposure to foreign exchange and interest rate
risks arising from operational, financing and investment activities. In accordance with its treasury policy, the
Group does not hold or issue derivative financial instruments for trading purposes.
Derivative financial instruments are recognised initially at fair value and transaction costs are expensed
immediately. Subsequent to initial recognition, derivative financial instruments are stated at fair value in
the balance sheet. The gain or loss on remeasurement to fair value is recognised immediately in the income
statement.
Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are
recognised in other comprehensive income and presented in equity in the hedging reserve to the extent that
the hedge is effective.
The derivative financial instruments have been valued using a discounted cash flow valuation methodology.
All financial instruments held by the Group and measured at fair value are classified as level 2 under the fair
value measurement hierarchy.
38
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
30. SHARE SCHEMES
Leader Share Purchase & Loan Scheme
In 2021 Comvita Limited established a Leader Share Purchase & Loan Scheme (“LSPLS”) to retain key
employees and materially align the interests of participants with those of shareholders, by making loans
available to eligible employees for the acquisition of fully paid ordinary shares in Comvita.
30 June 202430 June 2023
Employees in the LSPLS78
Number of shares held696,077738,012
% of share capital0.99%1.05%
Performance Share Rights Scheme
Comvita Limited has a Performance Share Rights (PSR’s) Scheme to incentivise Executives. Upon vesting
of the PSR’s, shares will be transferred from treasury stock or new shares will be issued in the capital of the
Company on the terms and conditions described in the Comvita Limited Performance Share Rights Scheme.
Share based payment expenses are recognised over the vesting period of these PSR's.
In thousands
30 June 2024
Number of
entitlements
30 June 2023
Number of
entitlements
Entitlements on issue
Entitlements outstanding at beginning of year - July872458
Entitlements granted 372607
Entitlements cancelled(76) -
Shares vested(323)(193)
Entitlements outstanding at end of year845872
Employee Share Scheme
In 2022 the Company established a new Employee Share Scheme called the Comvita Exempt Employee
Share Scheme (“CEES Scheme"). The CEES Scheme is designed to allow employees to share in the future of
the Company. The key points of the CEES Scheme are:
• Comvita offered a certain number of ordinary shares to eligible employees.
• When the offer was accepted Comvita issued the shares to the CEES Scheme Trustee (Comvita Share
Scheme Trustee Limited, which is a subsidiary Company) who will hold the shares on the employee’s
behalf.
• The release of shares to the employee is subject to remaining employed with the Company for three
consecutive years subsequent to accepting the offer.
• The Company may from time to time invite eligible employees to participate in the CEES Scheme.
• All dividends or other distributions made in respect of each employee's shares held on trust by the Trustee
shall be paid to the employee.
There are 150 employees in the CEES Scheme and the number of shares held is 56,385.
Share-based payment transactions
A valuation of each employee scheme is performed at grant date either using the Monte Carlo model or
the share price at grant date, less the present value of estimated dividend payments during the period.
A share based payment is recognised over the vesting period of the PSR as an employee expense, with a
corresponding increase in equity. The amount recognised as an expense is adjusted to reflect the actual
number of share entitlements that vest.
OTHER DISCLOSURES
39
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
31. RELATED PARTIES
Transactions with Leadership Team and Directors
Leadership Team and Director compensation comprised:
In thousands of New Zealand dollars
30 June 202430 June 2023
Director fees605605
Short term employee benefits3,7565,424
KiwiSaver employer contribution165186
Share based payments 1,039972
Total5,5657,187
Leadership Team loans:
In thousands of New Zealand dollars
Note30 June 202430 June 2023
Loan to CEO - non-current450450
Loans to Leadership Team
– Leader Share Purchase & Loan scheme
302,2792,367
Total2,7292,817
At 30 June 2024 Directors and other Leadership Team personnel of the Company control 2.4% (2023: 2.6%)
of the voting shares of the Company.
40
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
32. GROUP ENTITIES
The Group comprises of the Company and the following entities:
Subsidiaries
Country of
Incorporation
Ownership
Interest Held
Comvita New Zealand LimitedNew Zealand100%
Bee & Herbal New Zealand LimitedNew Zealand100%
Comvita Landowner Share Scheme Trustee Limited New Zealand100%
Comvita Share Scheme Trustee LimitedNew ZealandManagement control
Comvita USA, Inc USA100%
Comvita Japan K.KJapan100%
Comvita Korea Co Limited Korea100%
Comvita Food (China) LimitedChina100%
Comvita Food (Hainan) Co. LtdChina100%
Comvita China LimitedHong Kong100%
Comvita Holdings HK LimitedHong Kong100%
Comvita HK LimitedHong Kong100%
Comvita Malaysia Sdn BhdMalaysia100%
Comvita Singapore Pte LimitedSingapore100%
Comvita Holdings Pty LimitedAustralia100%
Comvita Australia Pty Limited Australia100%
Olive Products Australia Pty Limited Australia100%
Comvita IP Pty LimitedAustralia100%
Medihoney Pty LimitedAustralia100%
Medihoney (Europe) LimitedUnited Kingdom100%
Comvita Holdings UK LimitedUnited Kingdom100%
Comvita UK LimitedUnited Kingdom100%
New Zealand Natural Foods LimitedUnited Kingdom100%
Comvita Europe BVNetherlands100%
All Group subsidiaries have a 30 June balance date, except for Comvita Food (China) Limited and Comvita
Food (Hainan) Co. Ltd, which have a 31 December balance date due to local requirements.
33. COMMITMENTS
At year end the Group was committed to $3.4 million of capital expenditure related to the ongoing
development of Mānuka forests which will be paid over the next four years (2023: $2.6 million over the
next year).
$2.5 million of Mānuka Forest commitments are also disclosed in note 20 as lease commitments.
41
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
AUDIT REPORT
42
Independent Auditor’s Report
To the shareholders of Comvita Limited (G roup)
Report on the audit of the consolidated financial statements
Opinion
In our opinion, the accompanying consolidated financial
statements of Comvita Limited (the Company) and its
subsidiaries (together the Group) on pages 4 to 41
present fairly in all material respects:
- the Group’s financial position as at 30 June
2024 and its financial performance and cash
flows for the year ended on that date In
accordance with New Zealand Equivalents to
International Financial Reporting Standards (NZ
IFRS) issued by the New Zealand Accounting
Standards Board and the International Financial
Reporting Standards issued by the International
Accounting Standards Board.
We have audited the accompanying consolidated
financial statements which comprise:
- the consolidated statement of financial
position as at 30 June 2024;
- the consolidated income statement,
statements of comprehensive income,
changes in equity and cash flows for the year
then ended; and
- notes, including material accounting policy
information and other explanatory information
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of Comvita Limited in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand)
issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards
Board for Accountants’ International Code of Ethics for Professional Accountants (including International
Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the Auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has provided other services to the Group in relation to limited assurance services over Greenhouse Gas
scope 1, 2 & 3 emissions reporting and taxation. Subject to certain restrictions, partners and employees of our
firm may also deal with the Group on normal terms within the ordinary course of trading activities of the business
of the Group. These matters have not impaired our independence as auditor of the Group. The firm has no other
relationship with, or interest in, the Group.
42
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
43
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the consolidated financial statements in the current period. We summarise below those matters and our key audit
procedures to address those matters in order that the shareholders as a body may better understand the process
by which we arrived at our audit opinion.
Our procedures were undertaken in the context of and solely for the purpose of our audit opinion on the
consolidated financial statements as a whole and we do not express discrete opinions on separate elements of
the consolidated financial statements.
The key audit
matter
How the matter was addressed in our audit
Impairment of Non-Current Assets
Refer to Note 21 and 22 of the
consolidated financial
statements.
Prior to any recognised
impairment, the Group had
$32.2m of goodwill relating to
four cash generating units
(CGU’s):
— Greater China;
— South East Asia;
— Apiary; and
— Other.
The Group utilises value in use
models to determine the
recoverable amount of each
CGU, which are then
compared to the CGU's net
assets. In relation to these
models, particular attention
was required of:
— Projected earnings before
interest and tax (EBIT);
— Post tax-discount rates;
and
— Terminal growth rates.
The process of performing an
impairment assessment is
inherently judgemental as it
involves the use of
unobservable, forward-looking
assumptions and data.
Our audit procedures included the following, amongst others:
— We assessed the Group’s determination of CGU's based on our
understanding of the nature of the Group, their operations and the
internal reporting of the business;
— We obtained the independent valuers valuation report of the CGU’s and
overall Group. The primary valuation(s) methodology adopted to
estimate the Value in Use (VIU) was the discounted cash f
low approach.
— We assessed the valuation and VIU models for each CGU and the
overall Group considering the methodology adopted in the discounted
cash flow valuation models against the requirements of the applicable
financial reporting standards;
— We considered the reasonableness of assumptions in individual and
Group VIU models based on the Group 5 year forecasts to ensure
appropriate and consistent cash flows reported. We analysed the future
cash flow forecasts used and determined whether they are reasonable
based on the implementation of the strategic plan and historical
achievements;
— We utilised our corporate finance specialists to challenge key
judgements, which included the post tax-discount rates and terminal
growth rates applied;
— We reviewed the sensitivity analysis on key cash flow forecast
assumptions to understand the impact of reasonable possible changes
in key assumptions in various scenarios;
— We obtained management’s resulting impairment adjustments and
performed testing to compare the calculated recoverable values per the
models to the associated carrying amounts, and assessed whether the
resulting impairment expense were recognised appropriately;
— We evaluated the recoverable amount of the remaining assets in the
Group; and
— We considered and reviewed appropriateness, sufficiency and clarity of
required disclosures included in the Group financial statements.
43
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
44
The key audit
matter
How the matter was addressed in our audit
In addition to the above, the
carrying amount of the Group’s
net assets as at 30 June 2024,
prior to any impairment,
significantly exceeded its
market capitalisation of $76.5m
and is considered an indicator
of impairment.
We did not identify any factors that were materially inconsistent with
management’s overall conclusions.
Other information
The directors, on behalf of the Group, are responsible for the other information. The other information comprises
the Directors Declaration, Statutory Information and Directory (but does not include the consolidated financial
statements and our auditor’s report thereon), which we obtained prior to the date of this auditor’s report, and the
Annual Report, which is expected to be made available to us after that date.
Our opinion on the consolidated financial statements does not cover any other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements our responsibility is to read the other
information and in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially
misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to directors.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders. Our audit work has been undertaken so
that we might state to the shareholders those matters we are required to state to them in the independent
auditor’s report and for no other purpose. To the fullest extent permitted by law, none of KPMG, any entities
directly or indirectly controlled by KPMG, or any of their respective members or employees, accept or assume
any responsibility and deny all liability to anyone other than the shareholders for our audit work, this independent
auditor’s report, or any of the opinions we have formed.
44
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
45
Responsibilities of directors for the consolidated financial
statements
The directors, on behalf of the Group, are responsible for:
— the preparation and fair presentation of the consolidated financial statements in accordance with NZ
IFRS issued by the New Zealand Accounting Standards Board and the International Financial Reporting
Standards issued by the International Accounting Standards Board;
— implementing the necessary internal control to enable the preparation of a consolidated set of financial
statements that is free from material misstatement, whether due to fraud or error;
— assessing the ability of the Group to continue as a going concern. This includes disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless
they either intend to liquidate or to cease operations or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated
financial statements
Our objective is:
— to obtain reasonable assurance about whether the financial statements as a whole free from material
misstatement, whether due to fraud or error; and
— to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but it is not a guarantee that an audit conducted in
accordance with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of the
consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is located at the
External Reporting Board (XRB) website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor’s report is Glenn Keaney.
For and on behalf of:
KPMG
Tauranga
28 August 2024
45
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
STATUTORY INFORMATION
GENERAL DISCLOSURES
Principal activity
The principal activity of the Group is apiary and forest ownership and management; and research,
manufacturing and distributing of Mānuka honey, bee products and olive leaf products.
Donations
During the year the Group made cash donations of $250,000 (2023: $282,000). The Company also made
donations of products to charitable organisations.
DIRECTOR DISCLOSURES
Directors’ remuneration for the year ended 30 June 2024
In thousands of New Zealand dollars
Base
Fee
Committee
Fee
Total
B Hewlett130-130
L Bunt (resigned effective 30 September 2023)16824
R Major653398
Z Guangping65-65
Y Wu 65-65
B Coates 651075
J Hoare652792
M Sang (appointed effective 5 October 2023)49756
D Banfield ---
Total
52086605
The maximum total pool of annual Directors’ remuneration is $610,000, as approved by
Shareholders in 2016.
46
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
Interests register
Directors have disclosed the following general disclosures of interests: :
R MAJOR
B COATES
B HEWLETT
Chair – Gibb Holdings (Nelson) Ltd
Chair – High Value Nutrition National Science Challenge
Chair – Go Global Avocado Primary Growth Partnership**
Chair – Armer Group Advisory Board
Deputy Chair – Hautupua General Partner Ltd**
Deputy Chair – Miro Trading General Partner Ltd**
Chair – SFFF Programme Miro
– Transforming Māori land to high-value horticulture*
Managing Director and Shareholder – Sinotearoa Ltd
Director – BioVittoria Ltd
Director – BioVittoria Investments Ltd
Director – Dairy Holdings Limited
Member – Oriens Capital Investment Committee
Chair – Toitu Tahua: Centre for Sustainable Finance
Chair – Fonterra – Sustainability Chairman
– Advisory Panel**
Chair – Koi Tu: Centre for Informed Futures /
University of Auckland
Director – Yealands Wine Group Ltd
Director – Northern Rescue Helicopter Trust
Director – American Chamber of Commerce
Director and Trustee – Mindful Money (Charity)
Director – MyFarm Kiwifruit Investment Fund*
Director – Quayside Holdings Limited**
Director – Quayside Properties Limited**
Director – Quayside Securities Limited**
*Entries added and effective during the year ended 30 June 2024
**Entries removed by directors during the year ended 30 June 2024
***Mr Zhu Guangping and Ms Yawen Wu are associated with substantial product holders. Zhu Guangping is associated
with Li Wang, the largest shareholder in the Company with a shareholding greater than 5%. Yawen Wu is associated
with China Resources which also has a shareholding greater than 5%.
Y WU***
Director – Genesis Care Pty Limited**
Director – Oatly Group AB
Director – Blossom Key Holdings Ltd
Director – China Resources Verlinvest
Senior Care Services Ltd
Director – Nativus Company Ltd
Director – Shanghai Red Sun Enterprise
Management Co., Ltd
Director – Chongqing Hezhan Eldercare
Industry Development Co., Ltd
Director – Chengdu Buen Chunqiu
Senior Care Services Limited
M S A N G
Director – Orion New Zealand Limited*
Director – Government Super Fund Authority*
Director & Deputy Chair – Building Research Association NZ*
J HOARE
Director – Meridian Energy Limited
Chair – Port of Tauranga Limited
Director – Auckland International Airport Limited
DIRECTOR DISCLOSURES (continued)
L BUNT
Chairman – Heat Treatments Limited
(ceased to be a director 30 September 2023)
47
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
Directors of Group Companies other than shown above
CompaniesDirectors
Bee & Herbal New Zealand LimitedD Banfield *
Comvita Australia Pty LimitedD Banfield*M Tobin
Comvita China LimitedD Banfield*G ZhuA Chen*
Comvita Europe B.VD Banfield*R Bosland*
Comvita Food (China) LimitedD Banfield*A Chen*G Zhu
Comvita Food (Hainan) Co. LimitedD Banfield*A Chen*
Comvita HK LimitedD Banfield*A Chen*
Comvita Holdings HK LimitedD Banfield*A Chen*
Comvita Holdings Pty LimitedD Banfield*M Tobin
Comvita Holdings UK LimitedD Banfield*
Comvita IP Pty LimitedD Banfield*M Tobin
Comvita Japan K. K **D Banfield*M Harada **
Comvita Korea Co LimitedD Banfield*J Park*
Comvita Landowner Share Scheme Trustee
LimitedD Banfield*
Comvita Malaysia Sdn Bhd ***D Banfield*A Chen*
Comvita New Zealand LimitedD Banfield*A Barr*
Comvita Share Scheme Trustee Limited ****D Banfield*H Brown*
Comvita Singapore Pte Limited *** D Banfield*Angela NgA Chen***
Comvita UK LimitedD Banfield*
Comvita USA, IncD Banfield*A Barr*
Medihoney (Europe) LtdD Banfield*
Medihoney Pty LtdD Banfield*M Tobin
New Zealand Natural Foods LimitedD Banfield*
Olive Products Australia Pty Limited **D Banfield*M Tobin
* denotes an executive of a Group Company
** R Shida ceased to be a Director on 2 November 2023 and Matthew Harada appointed on 2 November 2023
*** Andy Chen appointed on 25 October 2023
as at 30 June 2024
DIRECTOR DISCLOSURES (continued)
48
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
Share Dealings of Directors
Director
Relevant InterestNumber of
Shares
Disposed
Value of
Shares
Disposed
Number of
Shares
Acquired
Value of
Shares
Acquired
B HewlettBeneficially owned120,000$379,2009,090$9,999
R MajorBeneficially owned--17,700$19,470
M SangBeneficially owned--20,000$22,000
D BanfieldBeneficially owned--18,285$19,748
D BanfieldBeneficially owned--74,130-*
*D Banfield received four allotments of shares during the year at nil value as part of the Performance Share
Rights Scheme.
Directors Shareholding
Directors, or entities associated with Directors, held the following ordinary shares in Comvita Limited
at 30 June 2024:
DirectorRelevant Interest30 June 202430 June 2023
R MajorBeneficially owned53,51035,810
B HewlettBeneficially owned290,016400,926
B CoatesBeneficially owned20,00020,000
J HoareBeneficially owned6,0006,000
M SangBeneficially owned20,000-
D Banfield*Beneficially owned638,493546,078
Total1,028,0191,048,814
* D. Banfield also had 383,435 of outstanding Performance Share Rights at 30 June 2024.
Directors Indemnity and Insurance
The Company has insured all its Directors and the Directors of its wholly owned subsidiaries against liabilities
to other parties (except the Company or a related party of the Company) that may arise from their positions
as Directors. The insurance does not cover liabilities arising from criminal actions. Deeds of Indemnity and
Insurance have been given to Directors for potential liabilities and costs they might incur for actions or
omissions in their capacity as Directors. The Company has not been required to indemnify its Directors for
any liabilities during the year. Insurance have been given to Directors for potential liabilities and costs they
might incur for actions or omissions in their capacity as Directors. The Company has not been required to
indemnify its Directors for any liabilities during the year.
DIRECTOR DISCLOSURES (continued)
49
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
Employees' remuneration
During the 12-month period to 30 June 2024 the following numbers of employees received remuneration of
at least $100,000.
Number of employees
$100,000 to $110,00012
$110,000 to $120,00014
$120,000 to $130,00011
$130,000 to $140,0005
$140,000 to $150,0007
$150,000 to $160,0009
$160,000 to $170,0007
$170,000 to $180,0005
$190,000 to $200,0003
$200,000 to $210,0001
$210,000 to $220,0003
$220,000 to $230,0002
$240,000 to $250,0004
$250,000 to $260,0002
$270,000 to $280,0001
$280,000 to $290,0001
$290,000 to $300,0001
$310,000 to $320,0001
$320,000 to $330,0002
$330,000 to $340,0001
$350,000 to $360,0001
$360,000 to $370,0001
$370,000 to $380,0001
$390,000 to $400,0001
$440,000 to $450,0001
$490,000 to $500,0001
$570,000 to $580,0001
$760,000 to $770,0001
Note: these bands are New Zealand dollar equivalents and reflect the impact of fluctuations in the
foreign exchange rates for remuneration of overseas based employees. The figures include bonus
provisions made during the year which may have not been paid at period end. It does not include any
remuneration or benefit relating to share schemes.
EMPLOYEE REMUNERATION DISCLOSURES
50
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
SHAREHOLDER DISCLOSURES
Analysis of shareholder by size as at 30 June 2024
Category
No of shareholdersShares heldPercentage of
shareholders
Percentage of
shares
Up to 1,000 shares1,015512,33436.68%0.73%
1,001 – 5,000 shares1,0862,782,93239.25%3.96%
5,001 – 10,000 shares3092,278,86111.17%3.25%
10,001 – 100,000 shares3138,365,04411.31%11.91%
100,001 shares or more4456,286,2511.59%80.15%
Total2,767*70,225,422100%100%
*This number does not include a number of shareholders within Custodial and Nominee companies
Top 20 shareholders as at 30 June 2024
ShareholderShares heldPercentage of shares
Total ordinary shares 70,225,422100.00%
Li Wang 8,552,736 12.18%
HSBC Nominees (New Zealand) Limited 5,640,751 8.03%
China Resources Enterprise Limited 4,582,000 6.52%
Custodial Services Limited 4,272,007 6.08%
Kauri NZ Investments Limited 3,558,077 5.07%
Accident Compensation Corporation 3,484,397 4.96%
Alan John Bougen & Lynda Ann Bougen & Graeme William Elvin 2,314,893 3.30%
Bnp Paribas Nominees NZ Limited 2,018,381 2.89%
Forsyth Barr Custodians Limited 1,975,297 2.81%
Junxian Li 1,881,110 2.68%
New Zealand Superannuation Fund Nominees Limited 1,832,761 2.61%
Li Sun 1,410,000 2.01%
New Zealand Permanent Trustees Limited 1,296,817 1.85%
Rjt Investments Limited 1,139,553 1.62%
Maori Investments Limited 1,000,000 1.42%
New Zealand Depository Nominee 920,99 1.31%
Citibank Nominees (Nz) Ltd 847,621 1.21%
Masfen Securities Limited 734,010 1.05%
NZ Permanent Trustees Ltd Grp Investment Fund No 20 565,742 0.81%
Forsyth Barr Custodians Limited 546,983 0.78%
Other 21,303,424 30.34%
51
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
SHAREHOLDER DISCLOSURES (continued)
Substantial security holders as at 30 June 2024
ShareholderShares heldPercentage of shares
Li Wang
8,552,73612.18%
China Resources Enterprise Limited
4,582,0006.52%
Milford Asset Management Limited*
3,888,6025.54%
Kauri NZ Investments Limited
3,558,0775.07%
*This holding sits within HSBC Nominees (New Zealand) Limited. Milford Asset Management Limited ceased
being an substantial security holder on 29 July 2024.
52
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEAFINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
Directors
COMVITA BOARD OF DIRECTORS
—
Brett Hewlett
Bridget Coates
David Banfield
Guangping Zhu
Julia Hoare
Michael Sang
Robert Major
Yawen Wu
Banker
WESTPAC NEW ZEALAND
—
Level 8
16 Takutai Square
PO Box 934
Auckland 1140
ANZ BANK NEW ZEALAND
—
ANZ Centre, 23-29 Albert Street
Auckland 1010
Registered Office
COMVITA LIMITED
—
23 Wilson Road South,
Paengaroa
Private Bag 1, Te Puke 3153
Bay of Plenty, New Zealand
Phone +64 7 533 1426
Fax +64 7 533 1118
Freephone 0800 504 959
Email investor.relations@
comvita.com
www.comvita.com
MORE DETAILS
Auditors
KPMG TAURANGA
—
Level 2
247 Cameron Road
PO Box 110
Tauranga 3140
Solicitor
SIMPSON GRIERSON
—
27/88 Shortland St
Auckland CBD
Auckland 1010
Share Registry
LINK MARKET SERVICES
LIMITED
—
Level 30
PwC Tower
15 Customs Street West
Auckland 1010
53
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
DIRECTORY / PAPATOHU
20242024
Aotearoa
New Zealand
COMVITA NEW ZEALAND
LIMITED
—
23 Wilson Road South
Paengaroa
Private Bag 1, Te Puke 3153
Bay of Plenty,
Aotearoa New Zealand
Phone +64 7 533 1426
Freephone 0800 504 959
info@comvita.com
Malaysia
COMVITA MALAYSIA SDN.
BHD.
—
Business Suite 19A-24-3
Level 24 UOA Centre,
19 Jalan Pinang,
Kuala Lumpur
Phone: +60 166558966
hello.my@comvitasea.com
Korea
COMVITA KOREA CO. LIMITED
—
18F Gwanghwamun Building
149 Sejong-daero, Jongno-gu
Seoul (03186), Korea
Phone +82 2 2631 0041
service.korea@comvita.com
Japan
COMVITA JAPAN K.K.
—
3-27-15-2A Jingumae
Shibuya-ku, Tokyo 150-0001
Phone 03-6805-4780
info@comvita-jpn.com
Published August 2024
This document is printed on environmentally responsible papers, produced using elemental chlorine-free
(ECF), FSC-certified mixed-source pulp from responsible sources and manufactured under the strict
ISO 14001 environmental management system.
China
COMVITA FOOD (CHINA)
LIMITED
—
Room 2501 - 2502, Block A
Xinhao E Du, No 7018
Caitian Road, Futian District
Shenzhen 518120
Guangdong, China
Phone +86 755 8366 1958
comvita@comvita.com.cn
COMVITA FOOD (HAINAN)
CO. LIMITED
—
Room 405-28, 4th Floor,
Comprehensive
Business Building
Haikou Airport
Comprehensive Bonded Zone,
Haikou City, Hainan Province
comvita@comvita.com.cn
Hong Kong SAR
COMVITA HK LIMITED
—
Room 804A-805A
Empire Centre
68 Mody Road ETST
Hong Kong SAR
Phone +852 2562 2335
cs@comvita.com.hk
Singapore
COMVITA SINGAPORE
PTE LIMITED
—
30 Petain Road,
Singapore (208099)
Phone: +65 68735766
hello.sg@comvitasea.com
North America
COMVITA USA, INC.
—
506 Chapala Street
Santa Barbara, CA 93101
United States
Phone +1 855 449 2201
hello@comvita.com
Europe
COMVITA EUROPE B.V
—
Bakincklaan 7 1183 AT
Amstelveen
Netherlands
Phone: +31682065359
info.europe@comvita.com
United Kingdom
COMVITA UK LIMITED
—
2nd Floor, 47a High Street
Maidenhead, SL61JT
United Kingdom
Phone +44 1628 779 460
info@comvita.co.uk
Australia
COMVITA AUSTRALIA
PTY LIMITED
—
Office No. 34. Level One
1024 Ann Street, Fortitude
Valley, QLD, 4006, Australia
Freephone 1800 466 392
info@comvita.com.au
OUR OFFICES
54
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
COMVITA.CO.NZ
20242024
FINANCIAL STATEMENTS / NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
20242024
FINANCIAL STATEMENTS
COMVITA.CO.NZCOMVITA.CO.NZ
2024202420242024
Moruki i ngā
wā Whanokē
COMVITA.CO.NZ
FINANCIAL STATEMENTS /
NGĀ TAUĀKĪ WHAKAHAERE PŪTEA
---
INVESTORPRESENTATION
FULLYEARRESULTFY24
PRESENTED BY:
David Banfield, CEO
Nigel Greenwood, CFO
Brett Hewlett, Chair
29AUGUST2024
Agility in
Unpredictable
Times
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Notice
I M P O R T A N T
This presentation is given on behalf of Comvita
Limited. Information in this presentation:
•Should be read in conjunction with, and is subject
to, Comvita’s Annual Reports, Interim Reports
and market releases on NZX;
•Is from the audited Annual results for the year
ended 30 June 2024;
•Includes non-GAAP financial measures such as
Operating Profit/(Loss), Operating EBITDA and
Net Contribution. These measures do not have a
standardised meaning prescribed by GAAP and
therefore may not be comparable to similar
financial information presented by other entities.
They should not be used in substitution for, or
isolation of, Comvita’s audited financial
statements. We monitor these non-GAAP
measures as key performance indicators, and we
believe it assists investors in assessing the
performance of the core operations of our
business.
•May contain projections or forward-looking
statements about Comvita. Such forward-looking
statements are based on current expectations
and involve risks and uncertainties. Comvita’s
actual results or performance may differ
materially from these statements;
•Includes statements relating to past performance,
which should not be regarded as a reliable
indicator of future performance;
•Is for general information purposes only, and
does not constitute investment advice; and
•Is current at the date of this presentation, unless
otherwise stated.
While all reasonable care has been taken in
compiling this presentation, Comvita accepts no
responsibility for any errors or omissions.
All currency amounts are in NZ dollars unless
otherwise stated.
2
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Financial Headlines
F Y 2 4
•Revenue $204.3M : -12.7% (-$28.9M) vs PCP (FY23: $234M)
−Greater China market revenue -$19.2M or -17.6% vs PCP, GP impact -$15.3M vs PCP
−US market revenue -$9.5M or -26.6% vs PCP, GP impact -$5.3M vs PCP
•Gross profit 55% : -300bps vs PCP (FY23: 58%)
•Non-cash impairment $64.2M before tax
•EBITDA
−Reported pre-impairment $4.5M : -$26.1M vs PCP
−Underlying $10.3M : -$23.2M vs PCP
•NPAT
−Reported -$77.4M : -$88.5M vs PCP
−Underlying -$9.3M : -$22.4M vs PCP
•Inventory $134.4M : -$1.7M vs PCP
•Net Debt $79.7M : +$26.3M vs PCP
3
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Summary
F Y 2 4
H E A D L I N E S
•Revenue and associated gross profit in key markets were hit by a combination of
−General macro economic slowdown in our biggest market
−Price competition in entry point segments of Mānuka honey
−Mānuka honey contraction in our biggest market
•Over supply from pre 2019 has created a glut of honey that exporters are discounting to
clear
•Business was planning for growth In FY24, high fixed cost model impacts Comvita
subsidiaries net contribution disproportionately
4
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Our Response
F Y 2 4
•Good and Better product range launched to target short term ‘value’ segment and
expanded distribution
•Value range launched in China market, April 2024
•Enhanced consumer education on Comvita quality and partnership with other high profile
premium brands across Asia
•Regional NPD to drive trial, category excitement and relevance for local consumers
•Comvita brand focused on premiumisation, leveraging science and forests
−Premium segment delivers higher loyalty and repeat purchase
−Discovery of Lepteridine opens up the opportunity for proven efficacy claims for
consumers
−Forest strategy delivers sustainable footprint, pricing and quality advantage in premium
segments
•$10-$15M cost out programme to build agility between economic cycles
5
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Income statement
K E Y R E S U L T S
F Y 2 4
Commentary
•Total revenue -$29.9M or -12.7%
•China and North America combined -$28.7M
•SEA +$7.9M - offsetting declines in other
segments
•GP -300 BPS due to lower manufacturing
recoveries and apiaries revaluation
•Marketing investment -110 BPS to 11.9% of sales
•Sales expense 13.3 % vs 11% in PCP due to
channel mix change and HoneyWorld
•Reported NPAT -$77.4M impacted by impairment of
$60.5M (after tax) and nonrecurring costs of $7.6M
(after tax)
•Underlying NPAT -$9.3M.
For the year ended
NZD 000s
30 June
2024
30 June
2023Variance $Variance %
Revenue 204,341234,195(29,854)(12.7%)
Gross Profit %55.0%58.0%(3%)
Marketing24,33130,509(6,178)(20.32%)
Sales Variable27,09625,6541,4425.6%
ERP & Transformation9,8545,4154,43982.0%
Reported Net Profit After Tax (NPAT)(77,388)11,062(88,450)(799.6%)
Non-recurring Costs (After Tax)7,6482,0765,572
Impairment (After Tax)60,490-60,490100%
Underlying Net Profit after Tax (NPAT)(9,250)13,13822,388(142.6%)
6
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Impairment and Non-recurring Items
F Y 2 4
7
NZD’MBefore TaxTaxAfter Tax
Net Profit pre impairment(12.4)(4.5)(16.9)
ERP Costs7.2(2.0)5.2
NBIO & Restructure 2.5(0.3)2.2
Makino sale, Insurance Proceeds &
HoneyWorld Contingency
Consideration Release
(4.0)0.5(3.5)
Other one-off negative Tax Impacts-3.73.7
Net Profit excl. Non-recurring (6.7)(2.6)(9.3)
N O N-C A S H I M P A I R M E N TN O N-R E C U R R I N G C O S T S
•Net profit after Tax of -$16.9M
•Total non-recurring costs after tax of $7.6M
•Net profit after tax excl. once off non-recurring cost at -$9.3M
•Impairment test was indicated due to a material gap
between the company’s net total assets (tangible and
intangible) and its market capitalisation
NZD’M Balance Sheet (BS)
BS Pre-
Impairment
Impairment
BS Post-
Impairment
Cash8.2-8.2
Debtors35.0-35.0
Other Current Assets13.52.516.0
Inventory134.4-134.4
Fixed Assets & Leases95.7(3.4)92.3
Non-current Assets and deferred
tax asset
14.6-14.6
Intangible Assets50.4(43.0)7.4
Investments12.2(12.2)-
Total Assets364.0(56.1)307.9
Medibee (4.4)
Total Impairment Post Tax(60.5)
Tax Impact(3.7)
Total Impairment Pre Tax(64.2)
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Reconciliation of Group Results
K E Y R E S U L T S
R E P O R T E D T O U N D E R L Y I N G F Y 2 4
NZD 000sRevenue
Gross
ProfitEBITDAEBITNPAT
Reported Results204,341112,389(59,651)(73,506)(77,388)
Remove ERP* Costs7,2457,2455,216
Remove NBIO* and Restructure2,5022,5022,217
Remove Makino sale, insurance proceeds and
HoneyWorld Contingency release
(3,966)(3,966)(3,478)
Remove Impairment64,19064,19060,490
Remove other one-off negative tax impacts3,693
Underlying Results204,341112,38910,320(3,535)(9,250)
* Underlying EBITDA and NPAT, sales variable and transformation are non-GAAP measures. We monitor these as key performance indicators and believe they assist investors in assessing the performance of the core
operations of our business.
** Investment in company ERP system
*** NBIO – Non-Binding Indicative Offer
8
Commentary
•After adjusting for one off non trading
items and the impairment our
underlying EBITDA was $10.3M and
our NPAT was a loss of -$9.3M
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Key Balance Sheet Items
K E Y R E S U L T S
F Y 2 4
Commentary
•Net debt $79.7M up $26.3M or +49.3% on PCP
•HoneyWorld acquisition and Apiter investments
debt funded ($9.8M) as well as lower operating
cashflows
•Our bank debt is shown as current as at 30 June due
to a breach of a bank covenant. The banks have
subsequently waived their rights associated with this
breach
•Management are currently negotiating a revised
covenant structure with the bank to be completed in
September
•Inventory at $134M decreased $1.7M or 1.2% vs PCP
•After adjusting for the $4.2M revaluation of the
FY24 honey harvest
As at
NZD 000s
30 June
2024
Audited
30 June
2023
AuditedVariance $
Net Debt79,70753,386 26,321
Debtors 35,03039,373(4,343)
Cash at Bank 8,15611,554(3,398)
Inventory134,418136,088(1,670)
9
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Inventory
K E Y R E S U L T S
F Y 2 4
As at
NZD 000s
30 June
2024
Audited
30 June
2023
AuditedVariance $Variance %
Finished Goods 64,60947,55817,05135.9%)
Honey WIP 2,6206,104(3,484)(57.1%)
Raw Materials & Other*67,18982,426(15,237)(18.5%)
Total Inventory 134,418136,088(1,670)(1.2%)
10
Commentary
•Inventory has decreased by $1.7M vs PCP
•Raw materials decreased by $15.2M reflecting
the benefits of unwinding the previous long term
supply agreements and only acquiring honey as
required
•Finished goods increased by $17.1M
predominantly due to the lead time of finished
goods being produced to meet forecast demand
that did not materialise
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Cashflow
K E Y R E S U L T S
F Y 2 4
Commentary
•Operating cashflow of $5.3M down $2.8M on
prior year predominantly due to lower earnings
•H2 positive operating cashflow of $11.4M
•Investing activities down $7.1M with capital
expenditure being managed
As at
NZD 000s
30 June
2024
Audited
30 June
2023
AuditedVariance $
Operating Cash Inflow5,3338,083 (2,750)
Investing Activities(13,654)(20,754)(7,100)
Financing Activities5,0456,732(1,687)
Cash and Cash Equivalents8,15611,554(3,398)
11
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Cost out target $10M-$15M vs FY24
12
FY25 SavingsAnnualised
Savings
Headcount
reduction vs FY24
COGS
$2M- $5M$5M- $8M22
OPEX
$3M - $5M$5M-$7M31
Total
$5 - $10M$10-$15M53
Commentary
•On track to deliver $5-10M cost savings in FY25
and annualised savings of $10-$15M
•Headcount to be reduced by 53 positions versus
FY24 actuals
•On track to deliver $10-$15M annualised savings
•Savings designed to build organisational agility
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Challenges & Actions
F Y 2 4
H I G H I N V E N T O R Y & N E T D E B T
The issue
•Lower sales than forecast meant despite reducing
Inventory held as raw materials cash is tied up in
elevated finished goods in market preventing early
pay down of debt
•Net debt above our targeted leverage ratio of 1-1.5x
•Incurred interest charges of $8.7M in FY24 an
increase of $3M vs PCP
13
Action to date
✓Increased in market activity to reduce finished good
inventory in FY25
✓Inventory reduction focus, freeing up cash and paying
down debt, along with sale of non-core assets, such as
our Makino forest investment (completed in June 2024)
✓Operating cashflow in H2 was $11.4M and full year
operating cashflow of $5.3M -$2.8M vs PCP. Ongoing
focus on improved Operating cashflow
✓Capital investment has been reduced in line with sales
performance
NET DEBT
$ 79.7 M
Context
•Finished goods were increased in market to meet
demand that failed to materialise in FY24
•Finished good enables activation of in market
campaigns to celebrate anniversaries in FY25
(20 years in China and 50 years for the Group)
FINISHED GOODS
$ 64.6 M
($17.1M increase)
Segmental
Performance
FY24
14
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Sales and Gross Profit Impact
F Y 2 4
R E V E N U E -$ 2 8 . 8 M : G P -$ 2 0 . 6 M V S P C P
15
FY24
$ 26.1 M
(-$9.5M or -26.6% vs PCP)
(-$19.2M or -17.6% vs PCP)
•Mainland China sales -23% or -$20M
•Impacted by partial cancellation of key 12:12
and 6:18 shopping festivals and broader honey
market sales -17.5% vs PCP
•Gross profit -$15.3M or -210 bps due to sales
miss
•Net contribution $17.2M -35.9% or -$9.6M due
to sales miss and high fixed costs model
•North America sales -$9.5M
•Impacted by the loss of distribution in one major
customer due to short term price activity
•Excluding above offline revenue +19%
•Online revenue 49% of total +7% vs PCP
•Gross profit -$5.3M or -160 bps due to sales
miss
•Net contribution $4.7M -47.5% or -$4.2M due to
sales miss and high fixed costs model
FY23
$ 35.6 M
FY24
$ 89.8 M
FY23
$109.0 M
VS
VS
NORTH AMERICAGREATER CHINA
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
AU ST R A L I A + N E W Z EA L A N D
16
REPO RTE D CURRE N C Y
Segment NZD 000s
This Year
Jun-24
Last Year
Jun-23
Vs.
Last Year
Vs.
Last Year
%
Rest of Asia
Sales37,05931,7715,28816.6%
Net Contribution2,7478,291(5,544)(66.9%)
Net Contribution %7.4%26.1%(18.7%)
ANZ
Sales36,37840,770(4,392)(10.8%)
Net Contribution10,31011,573(1,263)(10.9%)
Net Contribution %28.3%28.4%(0.1%)
EMEA
Sales3,6285,862(2,234)(38.1%)
Net Contribution(921)604(1,525)(252.5%)
Net Contribution %(25.4%)10.3%(35.7%)
OTHER SEGMENTS
F UL L YE AR PERF O RM AN C E
•Rest of Asia sales up $5.3M or 16.6%
•Sales growth contributed by HoneyWorld acquisition.
•Net contribution of $2.7M -66.9% due to brand investment for
growth and integration costs plus the impact of low-priced
competition.
•ANZ sales decreased -$4.4M or -10.8%
•China slowdown has had a knock-on impact to ANZ segment
(Asian Health). Low priced competition targeting entry points
•Net Contribution down -$1.3m or -11%
•EMEA sales decreased -$2.2M or -38.1%
•Segment remains subscale
•Low price competition in UK
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
China Market Dynamics
F Y 2 4
•FY24 surprise contraction in China total honey market from July 2023
−All honey category* sales out -17.5%
−Mānuka honey category* sales out -15.5%
•Comvita FY24 Mānuka honey sales -20% like for like
−Performance declined due to cancellation of major China shopping festivals 12:12, 6:18 and
China New Year strength in PCP
−Aggressive and unsustainable price activity from competitors in entry point categories
•Comvita Market Share reduced from c60% in 2022 to 54% in FY24
•July 2024 (FY25) total honey market showed signs of stabilisation
−July total honey sales vs PCP -3.5%
−Mānuka sales vs PCP +7.3%, Comvita share increased
* Sell out in T-Mall, JD & TikTok
17
18
Comvita Mānuka Honey Sales*
F Y 2 3 & F Y 2 4
Commentary
•Sales out up 1% for July to October 2023 (channel sales out to consumers)
•Performance directly affected by cancellation of key shopping festivals (12:12 and 6:18), weakness of 11:11 festival and
annualised impact of China New year post Covid
* Sell out in T-Mall, JD & TikTok
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
M A T E R I A L D I S R U P T I O N D U R I N G T H R E E F E S T I V A L S
Cancellation of 6:18
shopping Festival
Cancellation
12:12 Festival
China New
Year
11:11
Festival
Mānuka Honey Monthly Sales
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
G R EAT E R C H I N A
NZD 000s
This Year
Jun-24
Last Year
Jun-23
Vs.
Last Year
Vs.
Last Year %
Sales89,820109,005(19,185)(17.6%)
Net Contribution17,20426,821(9,617)(35.9%)
Net Contribution %19.2%24.6%(5.4%)
FULL YEAR PERFORMANCE
•Total segment revenue (19.2M) vs PCP impacted by Mainland China performance
•Mainland China revenue -23% or ($20M)
•Direct margin remains strong >60%
•Net contribution $17.2M or 19.2% -$9.6M vs PCP or 650 BPS
•Market share impacted by competitor short term price promotions in entry point segments, new ranges
launched to target value consumers
•Regional NPD to increase category reach and relevance
19
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Premiumisation & Leadership in China
F Y 2 4
20
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Regional New Product Development
F Y 2 4
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
22
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Challenges & Actions
F Y 2 4
C H I N A M A R K E T D E M A N D
23
The issue
•Abrupt change in consumer demand caused by:
•General consumer confidence following macro
economic challenges
•Cancellation of key shopping festivals and
•Aggressive price competition in entry point
segments
•Sales out data only available for Tmall, JD and Tiktok
representing c35% of category
•Total honey market revenue FY24 -17.5% vs PCP,
Mānuka market FY24 -15.5% vs PCP
•Comvita revenue reduced by -20% on a like for like
basis due to sell in, in June 2023
•Comvita market share reduced from 60% in 2022 to
54% in FY24
Action to date
✓Harmonised pricing (offline : online), added focused
resource to enable more balanced distribution
✓Launched value range to target ‘value’ driven
consumers
✓Pricing tests ongoing to optimise volume, value, market
share
✓New regional NPD to attract new consumers and
additional usage from existing consumers
✓Brand premiumisation continues
✓Targeted opex reductions to mitigate revenue impacts
and build agility
CHINA HONEY
MARKET REVENUE
-17 %
GREATER CHINA
44 %
of group sales
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
N O R T H A M E R I C A
NZD 000s
This Year
Jun-24
Last Year
Jun-23
Vs.
Last Year
Vs.
Last Year %
Sales26,13535,608(9,473)(26.6%)
Net Contribution4,6578,868(4,211)(47.5%)
Net Contribution %17.8%24.9%(7.1%)
FULL YEAR PERFORMANCE
•Total revenue -$9.5M vs PCP as previously explained
•Comvita revenue impacted by the loss of distribution in one customer
•Refresh of brand value proposition and upgrade of marketing collateral
•Comvita fastest growing Mānuka honey brand in Natural and Grocery channel combined (sell out)
•Net contribution fall in line with sales impact
24
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Engagement & Affinity in North America
F U N C T I O N A L & E M O T I O N A L
25
Product benefit focus = Digestion + Energy & Vitality + Immunity
Emotional engagement = A few minutes’ “escape” + indulgent wellbeing
R E F R E S H E D B R A N D E X P R E S S I O N
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Challenges & Actions
F Y 2 4
L O S T D I S T R I B U T I O N I N U S
The issue
•At the start of FY24 we lost some distribution with one of our biggest
customers
Context
•Customer decided to undertake a retail price test vs Comvita in
market
•Test on quality, volume movement and sustainability of supply
•Trial taking place for one year
26
Action to date
✓Strengthened the team, appointed a new Country Manager,
strengthened online performance including Amazon (+61%)
✓Refreshed brand collateral and improved performance marketing
✓Offline – driving trial and velocity instore
✓Fastest growing Mānuka brand in Grocery and Natural channel
✓Developed new offline retail distribution adding c700 stores in April
2024
✓Sell out performance encouraging
Industry
Dynamics
FY24
27
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Volume of Honey Produced
2000 – 2023
I N N E W Z E A L A N D
28
Commentary
•Hive numbers trebled between 2008 and 2019 peaking at c1M hives and
exports grew by c500%
•Created an industry overstock
•Between 2020 and 2023 honey production has fallen by -56%
•Ongoing supply now more aligned to demand, however, clearing industry
overstock has created ‘aggressive and unsustainable clearance’ activity in
entry point categories
•Hive numbers forecasted to be 4-500K in 2025
•Current apiary economics unsustainable (price : volume)
•Comvita forests already planted offer Comvita sustainable and cost-effective
supply
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Comvita Owned Mānuka Forests
F Y 2 2 – F Y 3 0
•Comvita owned forests offer long term sustainable supply with cost advantages
•44% of apiary supply from our forest by 2030 and with a 20% saving in cost per hive will save us
c$4M pa
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
New Zealand Honey Export
2002 – 2023
V A L U E
Commentary
•Exports grew five-fold between 2008
and 2017
•Exports reduced by -18% 2017 to
2019, +10% CAGR 2018 - 2021
•New Zealand honey export value has
fallen by -26% from the peak in 2020
30
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Honey Market
F Y 2 4
K E Y D E M A N D D Y N A M I C S
•US is the biggest single market for Mono-floral honey. No dominant brand, Comvita
currently lacks scale
•China market number two globally, exports c3% CAGR since 2020, Comvita exports 15%
CAGR since 2020. Comvita c54% market share in China
•Aggressive price competition caused by honey glut, targeting entry point segments
•Good and Better ranges launched to target ‘value’ seeking consumers
•Early signs of China Mānuka honey market stabilisation
31
Summary
32
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Summary
FY24 RESULT
•FY24 revenue impacted by aforementioned challenges in all market segments
•Exacerbated by short term price driven competition created by over supply
•Underlying FY24 NPAT -$9.3M
ACTION TAKEN
•Comvita Good and Better range targeting value consumers and increased distribution launched
•Regional NPD showing encouraging growth
•Fastest growing Mānuka brand in Grocery and Natural channel combined in North America (sell out)
• $10-$15M Cost out programme on track
•Focus on cashflow generation and debt reduction
•Banks remain supportive and new covenant structure expected to be confirmed in September
OUTLOOK
•Global honey category forecast to grow at 6.5% CAGR to 2030
•Global google searches for Mānuka continue to rise
•Early signs of stabilisation in China consumer demand
•Supply overstocks for premium quality products starting to correct themselves
•Comvita forests give confidence of future supply with competitive cost
33
F Y 2 4
Q + A
34
Appendices
35
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Reconciliation of Impairment to $64M
F Y 2 4
36
In thousands of New Zealand dollars
2024
30 June
Greater China – Goodwill and Intangibles
30,647
Software
5,752
Apiter – Investment and Loan
9,177
Caravan Honey – Investment
4,251
Southeast Asia – Goodwill
4,699
Apiary – Goodwill and PPE
5,166
Other Goodwill
68
Total
$59,760
Medibee – Guarantee and Loan
4,430
Total
$64,190
Commentary
•The impairment as announced on 26 August of $59.8M together
with the impairment taken up earlier associated with our Medibee
JV of $4.4M. Total FY24 impairment of $64.2M.
•Impairments taken up of:
•Goodwill and intangibles related to Greater China of $30.6M
−Goodwill of $25.6M, customer relationship intangible of $5M
•Software - $5.8M related to digital platform.
•Apiter - $9.2M related to 32% investment in associate not
considered recoverable.
•Caravan Honey - $4.3M related to 45% investment in this
skincare JV in North America not considered recoverable.
•Southeast Asia and apiary impairment totaling $9.9M
•Medibee guarantee and loan - $4.4M impaired to recognise intent
to exit the 50% JV.
Impact
DELIVERING ENVIRONMENTAL AND SOCIAL
37
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
Global Whanau and Safety & Wellbeing
P E R F O R M A N C E V S P C P
L T I F R
↓-59%v s F Y 2 3 ( 2 . 7 )
T R I F R
↓-29%v s F Y 2 3 ( 3 . 8 )
L I V I N G W A G E M E T F O R
NZ-B A S E D E M P L O Y E E S
+21
2.7
E M P L O Y E E P R O M O T E R
S C O R E
= 0v s F Y 2 3 ( + 2 1 )
65%
O F O U R G L O B A L
T E A M I S F E M A L E
1.1
4.6pts
S A F E T Y M A T U R I T Y
S C O R E
↑+105%v s F Y 2 3 ( 2 . 2 4 )
100%
1 J U L Y 2 0 2 3 – 3 0 J U N E 2 0 2 4
38
COMVITA INVESTOR PRESENTATION FULL YEAR RESULT FY24
GHG Summary
F Y 2 4 G L O B A L
39
R E S U L T S
GREENHOUSE GAS EMISSIONS – GLOBAL tCO
2
eFY24
tCO
2
e
FY23
tCO
2
e
Difference
%
Total Gross Emissions (S1,2,3)
1
26,07934,944(25%)
Removals GHG Inventory
2
(1,488)(5,842)(75%)
Total Net GHG Inventory Emissions24,59129,012(16%)
Comvita NZ ETS NZUs
3
(3,730)(743)402%
Adjusted Net GHG Emissions including Comvita NZUs20,86128,269(26%)
Enabled NZ ETS NZUs
4
(10,436)(4,263)145%
Adjusted Net GHG Emissions including Comvita & Other NZUs10,42524,006(57%)
Emissions Intensity – Gross GHG Emissions KgCO
2
e per NZD1 of
revenue
0.1280.149(14%)
Notes:
1
Gross emissions reduction due to less sales-related activity, optimising external honey purchases, and supply chain efficiencies and improvements.
2
Removals decreased to the registration of forests under ETS – reducing removals in GHG inventory but increasing NZ ETS NZUs generated.
3
Estimated annual NZUs accrued to Comvita. Interest in Makino JV has been removed from FY24 and FY23 figures.
4
Estimated annual NZUs accrued to other landowners from Comvita plantings. Makino JV has been removed from FY24 and FY23 figures.
C O M V I TA .C O M
---
COMVITA LIMITED / FOR THE YEAR ENDED 30 JUNE 2024
AGILITY IN
UNPREDICTABLE TIMES
COMVITA.CO.NZ
Climate
Statement
Working in harmony with bees and
nature to heal and protect the world is our
purpose, in line with our founding principles
from 1974. Achieving our purpose depends
on how we adapt, and remain resilient to,
risks that arise from changes in climate
conditions and the natural environment.
20242024
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
I
Climate change poses challenges and provides
potential opportunities for Comvita. This applies
right across our end-to-end value chain - from the
stewardship of our Mānuka forests, bee health and
hive management, right through to our consumer
and customer needs in markets for efficacious and
environmentally friendly natural health products.
Being close to nature, and understanding the
symbiotic relationship between bees, nectar
production and climate, has made us very aware
of the changes in climate we are undoubtedly
seeing. Changes in climatic conditions are not
something that is new to Comvita, and we have
already taken some steps to adapt our business
operations as seasons and weather have changed,
and we have experienced climatic weather
events. We have seen both negative and positive
impacts from the changing climate. In some years
these changes have benefitted Comvita through
increased honey production. The negative
impacts were felt first- hand when our Hawke’s
Bay apiary branch and extraction facility was
heavily impacted by Cyclone Gabrielle in 2023.
Our years of experience, extensive scientific
research, and focus on continuous innovation, are
helping enable us to continue to adapt to, and
mitigate the impacts of, climate change, right
across our value chain. Internal and external honey
supply options, geographical diversification of
hives, and alternative distribution options help
provide resilience to cope with variability and
supply interruption. Our in-market presence and
direct consumer understanding enables us to
anticipate regulatory, customer and consumer
requirements and needs as globally we all work to
transition to a low-carbon economy.
Understanding the climate, and taking related
action, has always been key to our business
resilience and growth. Climate action is a core
aspect of our Harmony Plan, and climate change
has consistently ranked highly in our Materiality
Assessments, increasing in importance over time.
Our 2025 Strategic Plan set out climate action
leadership as a key focus for Comvita, underpinned
by a long-term aim to reach net zero. While
Comvita has previously stated its goal to be carbon
neutral, we believe a focus on gross emissions
reduction is more appropriate, particularly given
current financial conditions, rather than investing
in carbon credits for offsetting to state we are
carbon neutral.
Comvita first published its global greenhouse
gas (GHG) Inventory in FY22, audited to a limited
assurance level. Our GHG Inventory Report
information has been included within this Comvita
Climate Statement for FY24.
Our net global GHG emissions for the year
ended 30 June 2024 were 24,591 tCO
2
e, a
16% reduction from the previous reporting
period. Gross GHG emissions fell 25% but
carbon removals were significantly lower due
to the loss of operational control over some
Mānuka forests when they were registered in
the New Zealand Emissions Trading Scheme
(ETS). In many cases Comvita then receives a
share of the resulting NZUs, which we report
on separately, and which increased significantly
in FY24. Our adjusted FY24 net GHG position
if we allowed for estimated Comvita NZUs
accrued would be 20,861 tCO
2
e, a 26% decrease
from FY23. Our gross emissions intensity also
fell 14% to 0.13 kgCO
2
e per NZD1 of revenue.
The total cumulative carbon removals from all
Comvita Mānuka plantings and managed land
increased to 120,753 tCO
2
, up 42% from 85,054
tCO
2
last year.
Comvita remains committed to achieving its
GHG reduction goals and increasing GHG
sequestration from its Mānuka forests,
while acknowledging that we have further
work to do on our decarbonisation strategy.
Decarbonisation will be a key mitigation
strategy for our climate-related transition risks.
The Comvita Climate Statement for FY24 is
Comvita’s first formally published climate-
related disclosure, identifying and evaluating
more broadly our climate-related risks and
opportunities under three different scenarios,
and how to manage these moving forward
considering our strategic focus. We are on
a journey, with further expansion required
on the financial implications of such risks
and opportunities. Comvita is aware of the
need to transition our business strategy for
adaptation and decarbonisation, supported
with appropriate investment, performance
management, and other activity.
COMVITA LIMITED CLIMATE STATEMENT
APPROVED BY:
For an on behalf of the Board of Directors:
Brett Hewlett
– Chair
Julia Hoare
- Chair of Audit and Risk Committee
28 August 2024
INTRODUCTION
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
II
ABOUT THIS REPORT
———
Reporting Entity
Comvita Limited (Comvita) is a climate-
reporting entity under the Financial Markets
Conduct Act 2013.
Comvita is domiciled in New Zealand, registered
under the Companies Act 1993, and listed on
the New Zealand Stock Exchange. This Climate
Statement for the year ended 30 June 2024
(FY24) is Comvita's first Climate Statement. It
includes Comvita Limited, the parent company
with its registered office in New Zealand,
and all of its subsidiaries. Refer to Comvita
Organisational Structure in Appendix 3.
It also includes Comvita’s annual Greenhouse
Gas Inventory reporting for the same period.
The Comvita Climate Statement accompanies
Comvita’s 2024 Annual Report for the same
period, which contains detailed information on
business and financial performance. Both reports
will be available at Comvita.co.nz/investor under
Results & Reporting for 2024.
———
Statement Of
Compliance
The Comvita Climate Statement has been
prepared in accordance with and complies with
the Aotearoa New Zealand Climate Standards
(NZ CS) issued by the External Reporting Board.
In preparing its Climate Statement for FY24,
Comvita Limited has elected to use the following
adoption provisions set out in NZ CS 2:
• Adoption provision 2: Anticipated financial
impacts. This adoption provision provides an
exemption from disclosing the anticipated
financial impacts of climate-related risks and
opportunities reasonably expected by an entity
in the entity’s first reporting period (and related
disclosures). Comvita will look to quantify
anticipated financial impacts in more detail
during FY25.
• Adoption provision 3: Transition planning. This
adoption provision provides an exemption from
disclosing the transition plan aspects of its
strategy, including how its business model and
strategy might change to address its climate-
related risks and opportunities; and the extent
to which transition plan aspects of its strategy
are aligned with its internal capital deployment
and funding decision-making processes. In
accordance with the exemption requirements,
Comvita has provided a description of its
progress towards developing the transition
plan aspects of its strategy this year. Refer to
Transition Planning section.
• Adoption provision 6: Comparatives for metrics.
This adoption provision provides an exemption
from disclosing comparative information for
each metric disclosed for the immediately
preceding two reporting periods in an entity’s
first reporting period. We have partially relied
on this adoption provision and have disclosed
information for previous reporting periods
where it is available.
• Adoption provision 7: Analysis of trends.
This adoption provision provides an exemption
from having to disclose an analysis of the main
trends evident from a comparison of each
metric from previous reporting periods to the
current reporting period. We have partially
relied on this adoption provision and have
disclosed trend information where it is available.
Date Published
This report was published on 29 August 2024.
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
III
ABOUT COMVITA /
TE KAUPAPA O COMVITA
End-to-end value chain
Understanding our business
Page 01
STRATEGY /
TE RAUTAKI
Adapting to climate change
Risk assessment and transition
Page 05
GOVERNANCE /
MANA WHAKAHAERE
Proactive leadership
Board and management roles
Page 02
RISK MANAGEMENT/
WHAKAHAUMARUTANGA
Integrated processes
Risk management processes
Page 14
METRICS AND TARGETS /
NGĀ WHĀINGA PAETAE
Progress in adaptation
Performance against goals
Page 17
APPENDICES /
NGĀ TĀPIRITANGA
Additional information
More details and references
Page 24
CONTENTS
Disclaimer
This Climate-related Disclosure (CRD) is a summary
of Comvita’s assessment of future climate-related
risks and opportunities, and its resulting strategy.
It is intended to inform readers about Comvita’s
current business model and strategy in relation to
climate-related risks and opportunities. It should not
be interpreted as an offer of interests in financial
products or as capital growth, earnings or any other
legal, financial, tax or other advice or guidance for
investors and other primary users or any other reader.
Apart from the Greenhouse Gas Inventory contained
in the metrics and targets section of this CRD (which
is subject to limited assurance over all Scopes), the
information in this CRD has not been independently
assured.
This CRD contains forward-looking statements and
information, including climate-related scenarios,
climate-related risks and opportunities, projections,
metrics, targets, estimates, and assumptions about
future climate-related conditions, which are based on
current views and assumptions of Comvita which may
be subject to change.
While this CRD reflects Comvita’s best current
estimate and current understanding of future climate-
related events, risks, opportunities, impacts and
strategies as at the date of publication, actual future
outcomes and results are likely to differ from the
forward-looking statements in this CRD.
Forward-looking statements are not facts, but
rather estimates and judgements regarding possible
future actions, events and results that are based on
current estimates and strategies, developed using
methodologies currently considered by Comvita to be
the most suitable. They are necessarily subject to risks,
limitations, uncertainties and/or assumptions and
change.
No forward-looking statements, or other information
presented in this CRD that is based on estimates,
assumptions, or judgements, should be taken as a
guarantee of future outcomes or performance on
the part of Comvita. In particular, actual results,
outcomes, risks and opportunities may materially
differ from those which have been described in this
CRD due to various factors such as socioeconomic
and macroeconomic trends, climate change, customer
behaviour, policy, legislative and regulatory change,
geopolitical risk and events, and other events or
conditions that are unforeseen as at the date of
publishing this CRD.
Comvita has sought to provide accurate and correct
disclosures as at the date of publication (including
all relevant material information as at the date of
publication that could reasonably be expected to
influence decisions that primary users make on the
basis of this CRD) but cautions readers not to place
undue reliance on the forward-looking information
presented in this CRD.
Given the novel and developing nature of the
information contained in this CRD, as well as the
inherent uncertainty of the subject matter, “accurate
and correct” does not entail certainty of outcome.
It means that Comvita has undertaken appropriate
measures and implemented adequate controls such
that the information presented is believed to be free
from material error or misstatement and is otherwise
fairly presented.
To the greatest extent possible under New Zealand
law, Comvita expressly disclaims all liability for any
direct, indirect, or consequential loss or damage arising
directly or indirectly out of the use of or inability to use,
or the information contained within, this report.
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
2024
Comvita Limited (Comvita) is the global market
leader in Mānuka honey. We produce and market
Mānuka honey and other bee-related and olive leaf
extract natural health products. Our products
are sold in China, USA, Hong Kong, South Korea,
Japan, Singapore, Malaysia, Australia, New
Zealand and other markets in Europe and the
Middle East.
Comvita’s unique business model, which spans
from Mānuka forestry development and apiary
management to direct sales to consumers in global
markets, enables unparalleled management of
our brand and consumer intimacy.
Our strategy is focussed around:
• Positioning Comvita as a premium
natural health and wellness lifestyle brand;
• Delivering world class digital engagement
and experience, using data for competitive
advantage;
• Being recognised for science and quality;
• Achieving organisational simplification
and efficiency; and
• Becoming a world leading sustainable
organisation.
Comvita’s sustainability strategy is articulated
in our Harmony Plan, which is centred around
our purpose to work in harmony with bees and
nature to heal and protect the world. The strategy
includes a focus on climate action: delivering
carbon reduction in line with science-based
targets; sequestering carbon through our native
forest regeneration programme; and seeking to
produce products which have a low carbon and
environmental footprint, as well as delivering
products with scientifically proven health benefits.
Comvita is a certified B Corp,
joining a community of other like-
minded leading businesses globally
that use business as a force for
good. Comvita is certified across
all of its global entities, recognising
the high standards for social and
environmental impact we set in
considering and meeting the needs
of all our stakeholders in all parts of
our business, including climate considerations.
ABOUT COMVITA
SalesProduct Supply
Transport & Distribution
Customers
External
Production
External
Production
Road
Freight
Road
Freight
Honey Testing,
Processing &
Production Packing
In-Market Sales
& Marketing
Science & Intellectual Property
Mānuka
Forest Planting
& Management
Market
Warehouse &
Distribution
Centre
Global Freight
(Shipping,
Air, Road)
Domestic
Warehouse &
Distribution
Centre
Consumers
Comvita
Owned Land
Land Use
Relationships
Olive Leaf
Extraction
Olive Tree
Cultivation
Raw Materials &
Packaging Inputs
Bee Health, Hive
Management &
Extraction
Harmony Plan
Comvita’s Value Chain
1
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
Comvita is moving towards an integrated
approach to climate change-related risk
management, seeking to ensure that climate
change considerations are built into business
operations and that climate-related risks and
opportunities are incorporated within Comvita’s
———
Integrated
Governance
existing risk management processes. Climate-
related risks and opportunities are identified and
managed using input from functional experts
from all parts of our global value chain, while also
leveraging insights from our Board and Senior
Leadership.
GOVERNANCE
Business
Level
Overall responsibility for strategy and identification and management
of risks and opportunities, including those relating to climate change.
Between 3-10 members (currently 8). Meet at least 8 times per year.
Maintains and manages the Business Risk Register (which includes climate-related risks) and
allocates resource and budget to achieve strategic objectives. Includes Chief Financial Officer
who is responsible for climate-related disclosures and Chief Purpose and Transformation Officer
who is responsible for sustainability strategy including climate action.
11 members. Meets weekly with longer meetings once per month.
Oversees the management of all climate change related topics including risk and
opportunity management, transition planning, and resourcing recommendations.
8 members. Meets at least 6 times per year.
Audit and Risk Committee
Provides strategic input and guidance to the
Board on climate-related disclosures and
reporting requirements.
3 members. Meet at least 5 times per year.
Sustainability Team
Coordinates action plans for the development
of risk and opportunity management,
transition planning (decarbonisation and
adaptation) and reporting.
Operational Senior Management
Leadership and day-to-day business
management, reacting and planning for
climate-related impacts, escalating to
management and leadership levels as
appropriate.
Safety and Performance Committee
Provides strategic input and guidance to the
Board on company ESG objectives and required
director competencies and remuneration linked
to climate change and ESG performance.
3 members. Meet at least 6 times per year.
Finance Team
Comvita Limited Climate Statement
compliance. Modelling of financial impacts
of material risks and opportunities.
Functional Experts
Input into identification and management of
climate-related physical and transitional risks
and opportunities.
Board
Leadership
Management
Board of Directors
Leadership Team
Sustainability Steering Group
2
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
——
Governance Oversight
Comvita’s Board of Directors, as part of their
governance duties, have ultimate responsibility
for the oversight of climate-related risks and
opportunities, our Harmony Plan and sustainability
generally. Comvita’s Board is responsible for the
governance of Comvita’s strategic direction and
the oversight of Comvita’s risk management
framework, including recognising and managing
climate-related risks and opportunities and their
impact on strategic direction. Comvita’s Board
approves the company’s strategy, which includes
initiatives, frameworks, targets, metrics, and
policies to reduce climate-related risks and take
advantage of climate-related opportunities. As
part of its risk management, the Board receives
the full risk register prepared by the Leadership
team, with the top three business risks highlighted
for review at each Board meeting. The risk register
includes any material climate and environmental
risks to Comvita. Comvita’s Constitution requires
the Board, when discharging their duties, to
consider the impact on the environment. To
support this, we are working towards all Board
papers including consideration of climate and other
environmental impacts, risks, and opportunities
where appropriate.
The Board is supported in its responsibilities by
two sub-committees - the Audit and Risk (A&R)
Committee and the Safety and Performance
(S&P) Committee. These two committees provide
strategic input and guidance to the Board. All
Board members have access to the committees’
meeting papers and the finalised committee
minutes are tabled at the next Board meeting.
The A&R Committee meets at least five times
per year and the S&P Committee meets at least
six times per year. All Board and sub-committee
charters were reviewed during FY24 to ensure that
responsibilities are clearly defined and to support
the Board’s oversight requirements.
The A&R Committee reviews and recommends
Comvita’s Climate Statements and ensures it
monitors legislative compliance, including record
keeping obligations. The A&R Committee will
receive a Climate Change Risk and Opportunity
Report formally twice a year as part of its
Compliance reviews, with the results reported
to the full Board at the next meeting. A full risk
and opportunity review and in-depth assessment
will be conducted and reported on at every June
A&R meeting. At this meeting the Committee
will review Comvita’s scenario analysis, climate-
related impacts, risks and opportunities,
associated financial modelling, transition planning,
and metrics and targets. A second interim update
will be provided at the November A&R Committee
meeting, highlighting any significant developments
in reporting requirements, material changes in
impacts, risks and opportunities, and performance
against metrics year to date.
The S&P Committee is responsible for the
nomination, appointment, and remuneration of
Directors as well as the development of Comvita’s
Board competency framework which includes
climate change-related competencies, the regular
review of Board competencies, and the provision of
resources to develop and maintain Directors’ skills
and knowledge. A review of Board competencies
will be conducted annually moving forward,
including experience in best practice climate-
related risk management and an assessment
of experience in embedding climate risk and
opportunity management into business strategy
and operations. Any gaps will then be considered
in the annual Board education plan and in future
Director recruitment. To support initial Director
and Leadership team skill and competency
development, Deloitte ran a climate change
education workshop in May 2023. Other education
and guidance material has also been shared with
this group.
As part of its Environmental, Social and
Governance (ESG) responsibilities the S&P
Committee helps with the establishment and
review of ESG objectives, strategies and policies
related to our Harmony Plan and/or those required
for disclosure purposes. It also has responsibility
for global remuneration design which includes any
incentive plan components in respect of climate
risk and sustainability.
Twice a year the Board and Comvita Leadership
team engage in formal strategic planning sessions.
This incorporates consideration of external and
internal risks and opportunities, including those
relating to climate change.
Governance
3
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
——
Management’s Role
Comvita’s Managing Director and Chief Executive
Officer (CEO) is responsible for the day-to-day
leadership of Comvita’s global business to ensure
the identification and development of business
objectives and strategies are delivered.
The CEO is supported by the Leadership Team.
The Leadership Team oversees the implementation
of the strategy considering risks and opportunities,
metrics, performance, and allocating resource
and budget to achieve the desired objectives.
The Leadership Team is responsible for managing
business risk across Comvita and maintains the
Business Risk Register. Twice a year, before the
Climate Change Risk and Opportunity Reports
are presented to the A&R Committee meetings in
June and November, the Leadership Team reviews
and provides input into these reports, bringing
the breadth of their broad business strategic and
operational knowledge.
This is done through the Comvita Business Risk
Register, ensuring risks and opportunities are
identified, assessed and managed in accordance
with the company risk management processes.
Climate change risks and opportunities are
managed through a sub-register within the main
register, with the material climate change risks and
opportunities integrated into the main Business
Risk Register. The Business Risk Register is updated
and reviewed by the Leadership Team monthly,
with Leadership Team members owning specific
risks. The Leadership Team report on the risk
register to the Board each month with
a particular focus on three escalated risks. This
helps ensure that key risks are identified and that
there is appropriate Board and management
oversight to drive informed decision-making.
The Sustainability Steering Group is sponsored
by the Chief Financial Officer and consists of a
sub-group of Leadership Team members and
senior managers from the Finance, Legal and
Sustainability Teams, as well as representatives
from the markets. It meets every one to two
months and its responsibilities include overseeing
the management of all climate change-related
topics including climate change risks and
opportunities, transition planning, and making
recommendations to leadership on resourcing
and capital and operating budget requirements.
This group maintains and manages the Climate
Change Risk Register, a sub-register that feeds
into the Comvita Business Risk Register.
Assisting the Sustainability Steering Group
are the Finance and Sustainability Teams. The
Sustainability Team works with the Finance Team
and other business units’ senior management
and functional experts to inform and support
climate-related risks and opportunities
management, climate and carbon strategy
development, decarbonisation and adaptation
activity, and metric development and reporting.
The Sustainability Team is responsible for
collating information on non-financial business
level metrics. The Finance Team oversees and
analyses financial impacts of material risks and
opportunities.
Noting that we are still on a journey to mature
climate change management, the yearly formal
review of Comvita’s scenarios analyses, climate
change risk and opportunities management,
transition planning, metrics, and performance is to
be overseen by the Sustainability Steering Group.
This Group will seek input from relevant staff, with
results presented to the Leadership Team and to
the Board.
Governance
4
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
Comvita experienced the following material climate-related impacts for the financial year ending
30 June 2024 for Comvita Limited and all of its subsidiaries. The following are consistent with the
amounts included within Comvita’s Consolidated Income Statement for FY24.
———
Current Impacts and Financial Impacts
Insurance CostsIncreasing severe weather
events, and other factors,
contributing to increased
insurance premiums.
Transition
(Policy &
Legal Risk)
Product
Supply
New Zealand(755)
Insurance
Proceeds
1
Income received from
business interruption and
material damage Cyclone
Gabrielle insurance claim.
Transition
(Policy &
Legal Risk)
Product
Supply
New Zealand1,743
Climate Change
Adaptation
Investment
Increasing costs and
investment in transition
planning and compliance
reporting.
Transition
(Policy &
Legal Risk)
GeneralNew Zealand(489)
Raw Materials
Supply Costs
Estimated increase in sugar
costs due to climate-related
events.
Physical
(Chronic)
Product
Supply
New Zealand(91)
ImpactDescriptionRisk Type
Value
Chain Area
Location
Financial
NZD000 # =
income, (#) =
cost
Current Impacts
1
Associated costs incurred in previous financial year, FY23.
STRATEGY
5
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
——
Scenario Analysis
Undertaken
During FY24 Comvita developed three scenarios
to help identify potential climate risks and
opportunities and to inform its strategic planning
more broadly.
Scenarios represent plausible, challenging
descriptions of how the future may develop
based on a set of assumptions about key driving
forces and relationships including physical and
transitional climate risks. Scenarios are used to
help identify and assess how climate-related
risks and opportunities could impact Comvita’s
operations, and test Comvita’s business strategy,
but are not intended to be probabilistic or
predictive or to identify the ‘most likely’ outcomes.
The Agriculture Sector Climate Change Scenarios
2023 (Ag Sector Scenarios) were used as a starting
point for Comvita’s scenario analysis. We utilised
the Ag Sector Scenarios temperature outcomes
and pathways developed given the nature of our
value chain and because Comvita was involved in
the working group responsible for this scenario
development. Noting the uniqueness of Comvita’s
value chain, Comvita modified and adapted the
scenarios to make them relevant and specific to
its operations and business model to take into
account the following:
1. Considering the different end consumers and
product categories, and looking more at the
health and wellness sector, rather than the
production of protein for food.
2. Moving beyond the focus on traditional dairy,
sheep and beef, and horticulture production
to include the specific risks and opportunities
associated with apiculture and forestry
cultivation (Mānuka and Olive trees).
3. Allowing for specific physical climate impacts
for our Olive Leaf Extract business in
Queensland, Australia and other subsidiaries
supplying raw materials from Australia and
South America.
4. Allowing for the breadth of Comvita’s value
chain which includes not only supplying to
overseas markets and customers, but actually
having in market operations as part of our
end-to-end business model.
5. Taking an extended outlook out to 2075 when
considering its climate risks and opportunities.
The same short-term and medium-term time
horizons were adopted and are generally in
alignment with Comvita’s strategic planning
cycles. The long-term was extended out to
2075 to allow for Comvita’s long-term land
use agreements.
6
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
Scenario 1Scenario 2Scenario 3
Tū-ā-pae - Orderly & ImmediateTū-ā-hopo - Disorderly & DelayedTū-ā-tapape - Faltering – Hothouse
Global
Temperature
Increases
1.6
o
C by 20502
o
C by 2050
2.5
o
C by 2050,
3
o
C by 2080
OverviewOrderly transition, with
ambitious mitigation, to achieve
net zero by 2050. Supported by
stringent government climate
policies implemented from
mid 2020s globally and in New
Zealand. Focus on research and
development led to innovations
to reduce carbon and other
environmental impacts.
Physical risks are relatively more
subdued than transition risks.
Delayed transition until after
2030, after which strong,
rapid action implemented by
governments globally. Emissions
initially increase and nationally
determined contributions are not
met. Not all countries take equal
action. Physical and transition
risks are higher. Costly and
disruptive transition for business
as they struggle to adapt to rapid
policy change.
World in which emissions continue
to rise unabated as no additional
climate change policies are
introduced by governments.
Physical impacts of climate change
are severe for some businesses,
including those in the agriculture
sector. Adaptation to climate
change is the priority and very
challenging.
Key Points• Consumer needs and customer
requirements driven by
government requirements and
increasing focus on conscious
consumption.
• Strong government
action domestically and
internationally-driven
emissions reduction.
• Relatively minor changes in
climate patterns.
• Rapid growth in sustainability-
linked finance.
• Minor impacts on workforce
and communities.
• Dramatic increase in
sustainability consumption
with stringent customer
requirements after 2030.
• Delayed government action,
with significant rise in
protectionism after 2030, which
negatively impacts exports
from countries which have not
adapted.
• Significantly increased extreme
weather events having greater
impacts on value chains.
• Weather and climate changes
have impacted access to
workers and communities.
• Capital availability impacted for
certain sectors.
• Consumers are more concerned
about obtaining products,
rather than their sustainability
credentials, due to significant
supply chain disruptions.
• Physical impacts of climate
change are severe. Agricultural
production in certain areas is no
longer viable. Forestry is hampered
by acute weather events, including
increased wildfire risk.
• Production and transport logistics
are severely impacted.
• Adaptation is priority for
government and organisations,
and at increasing cost.
• Workers and communities suffer
from negative physical and mental
health impacts.
• Capital and insurance access is
restricted.
Insights for
Comvita
(Utilised in
identifying,
assessing and
developing
approaches to
manage risks)
• Significantly increased
demand for climate action and
compliance reporting.
• Differentiation opportunities
with consumers and customers
for companies who respond
early to climate change.
• Access to markets and
competitiveness at risk if
not prepared for post-2030
demands.
• Resilience of value chain, worker
supply, and financing and
insurance availability
are important.
• Increased demand for natural
health and wellness products
post-2030.
• Viability of Mānuka forests and
honey production significantly
impacted in some areas – some
areas may no longer be viable,
while others may become available
as they are no longer suitable for
their previous agricultural land
uses.
• Supply chain insecurities globally
cause business interruption and
increases demand for local supply,
which is seen as more reliable.
• Focus on adaptation for business.
• Increased demand for health and
wellness products generally to cope
with increased health issues.
Scenario Summary
Strategy
7
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
——
Climate-Related
Risks and Opportunities
The table on the following page summarises
Comvita’s climate-related risks and opportunities
identified and assessed as part of its high-level risk
assessment process, their anticipated impacts, and
management response (which feeds into Comvita’s
transition planning). Many of these risks are
interconnected and therefore may have cascading
and cumulative impacts. Some of the risks may
have negative or positive impacts, and may also
result in opportunities. Refer to Risk Management
section for time horizon definitions and how
linked to strategic planning horizons and capital
deployment plans.
Climate-related risks and opportunities are an
input into our strategic and business planning, and
our capital and operational cost budgeting and
management:
1. As part of our prioritised business risk
management mitigation activities;
2. Through requiring a calculation of the
greenhouse gas impact and notional cost/
benefit on a one-off and ongoing basis using
our nominal internal cost of capital in as part
of our decision making (for example, capital
approval, supplier selection, and business travel
(in process of being rolled out)); and
3. At a general level by our Directors, and
management, whenever they make decisions
and are discharging their duties, with the
Constitution of Comvita Limited requiring
consideration of the interests of all stakeholders,
including financial and environmental impacts.
Comvita will conduct more in-depth analysis and
modelling of the anticipated financial impacts of
its climate-related risks and opportunities during
the next financial year to build more in-depth
understanding. Our focus will be on the exposure
and sensitivity to some of the physical risks.
Strategy
8
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
Risk / OpportunityDescriptionAnticipated Potential ImpactsRisk Type Chain AreaLocationTime HorizonManagement Approaches
Nectar & Honey
Production
Climate change-induced
alterations in environmental
conditions which impact
Mānuka flowering patterns,
increase pests and pathogens,
and impact bee health and
foraging patterns.
Changes in honey production yields and
quality; increased supply variability; and
increased cost of interventions to maintain
bee health. All of which could impact
overall apiary profitability, with possible
increases in working capital requirements
to support cross-season Inventory
management.
Physical
(Acute &
Chronic)
Opportunity
Product
Supply
New
Zealand
Med-Term• Ensure balance in supply internally versus externally.
• Geographic diversification of supply, and cross-season Inventory
management.
• Maintain focus on bee health and agility in hive management.
Damage to
Physical Assets
Risk of damage to natural and
built assets from increasingly
frequent climate-related
impacts.
Damage leads to revenue and product
loss; increased repair costs; additional
costs to replace lost supply; and
potentially impaired assets.
Physical
(Acute)
Product
Supply
New
Zealand &
Australia
Med-Term
Long-Term
• Ongoing monitoring of extreme weather probabilities by region and
relevant asset exposure.
• Regular review of asset protection strategies and insurance approach.
• Ensuring emergency preparedness and business continuity plans in
place.
Changing Consumer
Preferences &
Customer & Market
Requirements
Challenges in meeting
changing consumer
preferences for low carbon
products and customer
specific requirements, and
complying with diverse market
regulatory requirements and
climate trade measures.
Reduced demand, market share and
revenue; increased product-related
costs; brand reputation damage;
impeded market access; and increased
legal costs, penalties, and/or director’s
risk from the inability to comply and the
increased scrutiny of climate claims.
Transition
(Market;
Policy & Legal
Risk)
SalesAll MarketsMed-Term
Long-Term
• Decarbonisation action to meet market, customer and consumer carbon
fo otprint requirements and expectations.
• External validation of product and company carbon credentials to
support carbon claims made.
• Green claims management and education to ensure appropriate
evidence to support claims made.
• Insurance to cover business exposure as appropriate.
Access to Funding &
Insurance
Restrictions on access to
affordable capital and
insurance due to increasing
extreme weather events,
and if Comvita fails to meet
financial and insurance sector
expectations regarding
management of climate-
related risks.
Impacts Comvita’s funding and
insurance costs; operational
resilience; and ability to invest
and grow.
Transition
(Policy & Legal
Risk)
All BusinessNew
Zealand
Short-Term
(Insurance)
Med-Term
Long-Term
• Appropriate management of debt levels.
• Regular review of asset protection strategies and insurance approach.
• Delivery of climate transition strategies showing appropriate
management of risks and supporting decarbonisation.
Domestic Response to
Climate Change
Market access challenges,
returns on investments, and
asset values and costs are
unclear due to inconsistent
government policies on climate
issues.
Hampers strategic planning and
investment decision-making to
manage operational performance
and drive future growth.
Transition
(Policy & Legal
Risk)
All BusinessNew
Zealand
Short-Term
Med-Term
Long-Term
• Decarbonisation action to meet requirements and expectations.
• Advocacy at company, Mānuka industry and broader apiculture industry
level to influence government policy.
Global Distribution &
Logistics
Climate impacts (globally
and locally) may disrupt
distribution networks, and
alter distribution conditions.
Results in delays in supply and
damaged product; impacting customer
and consumer experience, increasing
costs, and impacting sales.
Physical
(Acute &
Chronic)
Transport &
Distribution
All MarketsShort-Term
Med-Term
Long-Term
• Regular reviews of key supply facilities and networks for exposure and
vulnerability, with appropriate business continuity planning to ensure
supply chain resilience.
• Adjustments to freight approach to prevent damage to product.
Weather-Related
Health & Safety
Incidents, & Staff
Attraction & Retention
Extreme weather events and
changing conditions pose
safety risks for workers at
Comvita's sites. Existing and
potential staff’s perception
of Comvita’s climate change
exposure, and the adequacy
of Comvita’s climate change
response may also impact
their willingness to work for
Comvita.
Affects staff attraction and retention;
increase health and safety costs to
protect staff; and elevate potential
liability risk.
Physical
(Acute)
Transition
(Staff)
All Business
All MarketsMed-Term
Long-Term
• Ongoing review and adaptation of risk management and emergency
preparedness systems.
• Decarbonisation action and delivery of other climate transition
strategies to demonstrate climate action leadership.
• Employee value proposition engagement with existing and
potential staff.
Raw Materials Supply
(excluding internal
honey)
Climate hazards and variable
weather could reduce Olive
Leaf production and yields,
and the supply and prices of
other raw materials.
Impacts revenue; costs; and
potentially leaving Olive
assets impaired.
Physical
(Acute &
Chronic)
Product
Supply
New
Zealand &
Australia
Short-Term
(Olive)
Med-Term
Long-Term
• Adaptation of farm management practices to maintain Olive tree
health, including provision of irrigation and appropriate drainage.
• Demand planning strategies and identification of supply alternatives to
mitigate impacts on production.
Market Leadership
– New Product Lines
& Reinforcing Brand
Differentiation
Changes in climate can
increase infectious diseases,
and impact mental health in
affected communities.
Increases demand for health and wellness
products, particularly those with credible
sustainability credentials. There may be
increased revenue opportunities from new
product development and/or extension of
existing products.
OpportunitySalesAll MarketsMed-Term
Long-Term
• External validation of product and company carbon credentials to
support carbon claims made.
• New product development to meet specific consumer health needs with
relevant carbon and other sustainability credentials.
Climate-Related Risks and Opportunities Summary
9
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CLIMATE S TATEMENT
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2
Refer to Appendix 4 – References.
——
Key Risks and
Opportunities
Further details on Comvita’s three most material
climate change-related risks (and opportunities)
are set out in the section below.
Nectar & Honey Production
Honey production relies on complex ecological
interactions between environmental conditions,
nectar production and bees, which could be
impacted by climate change in various and
uncertain ways. Changing weather patterns,
air temperatures, and soil moisture may cause
phenological shifts in Mānuka flowering times
and nectar flows in different regions (Ehmer,
Skaling, Tyrrell, and Welcher (2024)
1
). These same
climate conditions may also result in higher wind
speeds and more extreme weather situations,
potentially reducing the flying times of bees and
affecting foraging patterns. Ideally Mānuka
flowering aligns with settled dry and warm
weather periods. Climate change may impact this
temporal alignment at a regional or more broader
geographical level across the mid to lower North
Island, which are current sources of Comvita’s
Mānuka honey.
While the different factors may result in temporal
mismatches between flowering and good bee
foraging settled weather, there could also be
increased temporal matching in some seasons
with warmer weather and longer dry periods, and
some climate models predicting less strong winds
during summer periods when flowering occurs.
Higher temperatures over longer periods could
result in greater nectar flows and higher quality
honey with greater UMF® ratings. The challenges
are around the potential variability and frequency
of poorer seasons, and how this may change
over time under the different scenarios and time
frames Comvita has considered. This is difficult to
predict, although we expect variability to be more
dramatic with higher global warming levels. The
different factors, individually and in combination,
may impact crop yields and honey quality, causing
variability in annual supply and apiary profitability
which will need to be managed each season and
potentially across seasons to ensure continuity of
supply and of the right quality of honey.
Another related but separated climate-related risk
from changing climatic conditions, is the potential
for increased pests and pathogens, potentially
impacting bee health. For example, increased
temperatures and humidity, results in increased
pests and pathogens for bees, for example varroa
(Neumann & Straub (2023)
2
). If the locations in
which Comvita's hives are located are subject to
these changing environmental conditions then
Comvita may be required to undertake more
interventions to keep hives healthy, with such
interventions
resulting in
other negative
environmental
impacts and
increased costs.
Bee productivity and
honey production could be
impacted if hive populations
are not maintained.
Comvita has already experienced, and is
experienced in adjusting its business operations
for, changing weather patterns impacting honey
production in certain regions. In 2023 Comvita
closed its Northland apiary branch, putting
greater focus on middle to lower North Island
hive sites where the Mānuka flowers later in
summer when the weather tends to be more
settled. Owning, or having access to, Comvita-
planted Mānuka forests and other external hive
sites, with our own Apiary team, and our scale,
enables Comvita to plan and be agile in its bee
health management, hive management, and
hive placement. This helps maximise temporal
alignment during the key Mānuka flowering
periods and bee foraging, with a focus on securing
not just the highest quantity of honey, but also
higher quality Mānuka honey. In some key locations
there are beekeepers resident on site enabling a
rapid response during these time periods to secure
the best quantity and quality of honey.
Comvita’s extensive apiculture experience,
scientific research into Mānuka honey’s unique
properties, and our own Mānuka tree breeding and
queen bee breeding programmes which draw on
this experience and research, means that we can
also consider how we optimise our Mānuka trees
and bees to cope with changing climatic conditions
and increased exposure to pests and diseases.
Maintaining geographical diversification across
all of our hive sites (Comvita managed Mānuka
forests and other), as well as a balance between
internal and external honey supply are also
important mitigation strategies.
While there is a lot we know, we also recognise
more research and work is required to build
greater understanding of the exposure of different
hive sites to likely climate changes under the
different scenarios. We will also look to build
greater understanding of the interrelationship
between the changing climate conditions, Mānuka
tree health and flowering patterns, and bee health
and foraging patterns.
Strategy
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CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
Damage to Physical Assets
(Natural & Built)
Cyclone Gabrielle on 14 February 2023 brought
climate change into dramatic focus with
widespread flooding and damage, and enormous
impacts on local communities in the Hawkes Bay
and Gisborne regions. This extreme weather event
highlighted the exposure of Comvita’s physical
assets to acute weather events. Our Hawkes
Bay extraction and warehousing facility suffered
severe damage and all buildings, plant and honey
Inventory stored on site were irrecoverable. We
also lost 1,100 hives. Fortunately, the resilience
of the Comvita end-to-end business model helps
us overcome supply shocks where physical assets
suffer damage such as in this case. We were still
able to manage our hives, source honey, and we
could continue processing honey at our other
extraction facilities.
Increasingly frequent extreme weather events,
for example, storms, high winds, flooding and
wildfires, and other climate-related impacts
locally and globally, are expected to cause direct
damage to natural and built assets. If Comvita’s
capital assets, whether manufacturing facilities,
warehousing, site offices, Mānuka forests, Olive
trees, hives, and vehicles are impacted by such
events, then this may cause loss of product and
hamper the ability to manufacture and supply
finished products, leading to loss of revenue,
increased repair costs, and potentially impaired
assets.
A separate, but related risk, is the impact of
increasing frequency of extreme weather events
in particular geographic regions on insurers
reassessing their insurance premiums and
willingness to insure. If Comvita has insured
physical assets in impacted geographic regions,
then we may face increasing insurance premiums,
impacting costs and profit, and some assets may
ultimately become uninsurable leaving Comvita to
bear the costs of repair. Comvita is already seeing
the impact of increased insurance premiums
with a $755,000 increase in FY24, significantly
driven by increasing acute weather events such as
Cyclone Gabrielle.
As part of our climate-related risk assessment,
we have reviewed the exposure of all of our
physical assets to acute weather events. Our
physical assets include land, buildings, plant and
equipment, furniture and fittings, computer
hardware, vehicles, trees, hives, bees, and
Inventory in New Zealand and Australia, and
also in our global markets. From our review, our
Cyclone Gabrielle experience, and working with
our insurers, we know that site concentration and
the overall value of Inventory at different locations
are key factors. The geographic diversification of
our Mānuka forests, hive sites, apiary branches,
two Olive farms and market warehouses help to
mitigate this risk.
Comvita is potentially most exposed at its
Paengaroa site which is used for warehousing
raw honey, honey processing and packing, and
for offices. While the loss of raw honey would be
significant, it could potentially be replaced and
stored offsite. Most problematic would be the loss
of the honey processing facility and plant due to
the lead times of sourcing the specialist equipment
required and achievement of the required
production compliance standards. Honey packing
capability could be replaced in a relatively shorter
lead time with other options readily available.
A high-level assessment was conducted of the
exposure of the Paengaroa site to different
hazards, including flood, storm and wind damage,
wildfire, and land instability. The nature of the site
being flat and with limited surrounding vegetation
and fire sprinklers in place or to be installed in
near future, means the risks of wildfire and land
instability are seen as being very low. The risk of
flooding is currently low (Tonkin & Taylor (2021)
2
).
The risk of storm and wind damage is also unlikely,
although could increase as severe weather events
increase in intensity and frequency over the
medium-to long-term under the different scenarios.
Climate-related hazards could impact electricity,
water and gas supply, although these are likely to
be able to be addressed relatively quickly.
Comvita is monitoring on an ongoing basis the
exposure of its Paengaroa site, considering the
probabilities of extreme weather and resulting
hazards over time, and ensuring appropriate
protective measures and business continuity
planning is in place. Further detailed analysis
needs to be completed on other physical assets in
different geographical locations moving forward.
Currently 76% of Comvita’s physical assets are
insured and there are appropriate levels of business
continuity insurance in place. Our Mānuka forests
have some insurance for fire, but it is not possible
to insure these forests or our Olive trees and Olive
leaf for natural disasters generally. Similarly, our
United States and Hong Kong Inventory cannot
be insured for natural disaster, but this risk is
mitigated to some extent by business continuity
insurance. We cannot insure our bees, although we
do have insurance for hive hardware which would
help cover resulting financial losses. The insurance
approach is regularly reviewed with guidance
provided by our insurance brokers to appropriately
manage exposure. As part of its broader strategy
and business risk mitigation, Comvita is also looking
at some offshore manufacturing, which would help
mitigate this risk, and potentially other climate-
related transition risks.
Strategy
2
Refer to Appendix 4 – References.
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COMVITA.CO.NZ
Strategy
Changing Consumer Preferences & Customer
& Market Requirements
Consumers, customers, and governments are
increasingly requiring or preferring products to
have a low carbon and environmental footprint
and demonstrate other green credentials
such as recycled and recyclable packaging.
There may be a growing preference for locally
sourced products due to lower emissions. As
countries across the globe take action related
to climate change, some jurisdictions have
signalled their intention to impose climate-
related trade measures for products that do
not meet climate-related thresholds. These
requirements and the appetite for these
requirements may differ across jurisdictions
and between customers. Increasing regulatory
requirements may increase tariffs and other
compliance costs, potentially impact market
access, and/or Comvita may face penalties
and fines associated with not meeting specific
regulatory requirements.
We anticipate, particularly under Scenario 2
Tū-ā-hopo - Disorderly & Delayed Scenario,
that there will be significantly increasing
climate-related requirements and preferences
in the medium-to long-term. If Comvita
does not meet customer and consumer
expectations (and maintain its market access),
then market share and/or market demand and
resulting revenue may be impacted for certain
products in certain markets. We believe that
there are likely to be differing responses, and
on different time frames, from our various
markets.
Jurisdictions are also seeing an increase
in scrutiny of climate-related claims by
companies and how directors carry out their
duties, with litigation on the rise. Comvita
is conscious of the need to substantiate any
climate-related claims and demonstrate
responsible director action to ensure
consumers are not at risk of being misled
and to protect the company from any risks
of litigation or damage to its reputation. We
are ensuring that appropriate systems and
education programmes are in place for our
global teams, as well as appropriate insurance.
Comvita owns, and has operational control
through its planting programme, of significant
areas of Mānuka forest which sequester
carbon. Many of these areas are registered
under the New Zealand Emissions Trading
Scheme (ETS) and are counted towards
New Zealand’s Nationally Determined
Contribution (NDC). The carbon removals from areas
not registered under the ETS are able to be netted
off Comvita’s gross emissions, reducing the carbon
footprint of Comvita and its products. Comvita
reports on both types of removals – “pure” and ETS
registered.
Comvita’s direct relationships with consumers and
customers, teams on the ground in key markets,
and our regulatory competence means we are well
placed to anticipate any changing market, customer,
and consumer requirements. To date the focus
from customers has been more on providing data
to support their own greenhouse gas Inventory
calculations, which Comvita is well placed to
answer. Government climate trade measures have
concentrated on high emissions intensive industries
(Chapman Tripp (2024)
2
), not food or health
products, and packaging and associated plastic
taxes which are not specifically related to climate.
Given current requirements, the nature of Comvita’s
products being focused in supporting natural health
and wellness, and likely lead times, we believe we can
adapt to and absorb any changes in requirements
and preferences as long as we remain focussed
moving forward on decarbonisation and reducing
our company greenhouse gas footprint, as well as
providing products with externally
validated low carbon
credentials.
2
Refer to Appendix 4 – References.
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CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
——
Transition Planning
Comvita’s business model and strategy are set
out in – About Comvita section. Comvita is in the
process of developing the detail of the transition
aspects of its strategy, including how its business
model and strategy might change to address
the climate-related risks and opportunities it has
identified. This plan will be reported on in FY25
and will also be considered more formally as part
of our internal budgeting and funding allocation
processes moving forward. We see our Transition
Plan as highly iterative, adapting over time as
climatic conditions, hazards, and trends evolve,
and we build greater knowledge of our exposure
and vulnerability.
At this stage, Comvita has a high-level
understanding of the key areas it needs to focus
on, helping it adapt to the impacts of physical
climate-related risks, while decarbonising
the business to help it mitigate the impacts
of transition risks – refer to Management
Approaches in table Climate-Related Risks and
Opportunities Summary. As previously mentioned,
Comvita is aiming to set science-based carbon
reduction targets, which will be supported by the
decarbonisation plan it is developing. We will be
looking to utilise our experience and strength in
science to focus on tree and bee resilience, while
ensuring supply chain agility and latency. There are
also transition opportunities which have emerged
as part of our climate-related risk and opportunity
assessment.
Moving forward we will develop a more
comprehensive and detailed Transition Plan,
building on the work performed to date.
3
Format adapted from Transition Plan Taskforce (2023).
Refer to Appendix 4 – References.
High Level Indicative Transition Priorities
3
Strategy
DECARBONISATION
ADAPTATION
INDUSTRY LEADERSHIP
• Carbon efficient & circular packaging
• Carbon credentials validation
• Native forest sequestration
• Carbon efficient logistics
• Sustainable procurement
• Renewable energy
• Global supply chain
balance & latency
• Tree & bee/hive health protection,
genetic improvement, &
management agility
& adaptation
• Asset protection, risk
management, emergency
preparedness, &
business continuity
planning
Advocacy at company,
Mānuka industry & broader
apiculture level to build resilient
and competitive low
carbon industry
13
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COMVITA.CO.NZ
Comvita’s approach to climate-related risks
is informed by the breadth of its value chain,
including its long-term investment in Mānuka
forests and presence in global markets. We
incorporate climate-related risks within our
existing risk management framework. This has
reinforced our ongoing work to understand and
manage the evolving impacts of climate change on
our business, and to capitalize on the opportunities
through climate action leadership.
Tools and Methods Used for Climate-Related Risks
Comvita’s climate-related risk (and opportunity)
assessment involved a high-level approach to
risk identification, analysis and evaluation across
both transition and physical risks, in two separate
stages.
1. Risk Identification
An initial risk identification process was
undertaken, which involved engagement with a
range of experts, management and governance
from across the business. Climate impact
diagrams, based on ISO 14091, were used during
workshops to explore the range of climate risks
facing the business, across a range of climate
drivers and hazards, considering exposure, impacts
and vulnerability. From these rich descriptions, risks
were grouped into transition and physical risks,
and comprehensive descriptions developed. The
descriptions followed a standardised format using
if-then statements referring to hazard, exposure,
and vulnerability, as well as potential impacts
and associated likelihood. The long list of risks
was prioritised in terms of material impact to the
business, and a refined list of risks identified for
more detailed analysis.
———
Identification and Assessment of
Climate-Related Risks and Opportunities
2. Risk Assessment
In the second risk assessment stage, a
methodology using the IPCC definition of risk
(hazard, exposure, vulnerability) was used. A
standardised process for data identification,
collation and analysis process based on the NZ
Guide for Local Climate Change Risk Assessments
(Ministry for Environment (2021)
1
) was developed
in MS Excel. For each risk, a concise definition was
articulated in the risk assessment process. These
definitions helped identify relevant climate
hazards / stressors, and define indicators and
metrics for exposure, sensitivity, and adaptive
capacity. Once potential indicators were identified,
a systematic process of data collation was
undertaken.
Sources of data included a wide range of internal
business records, reports and expert knowledge,
industry and research documents, and publicly
available climate change projections and data.
Where data gaps were identified, indicators
and metrics were adjusted to enable analysis,
and documentation made to support future
methodology and data improvements. Where
required, data extracts have been stored in a
dedicated filing system.
The scale of data required differed between risks.
In some cases, localised hazard projections were
available to assess risk at specific locations or
regions. In other cases, global climate projection
data was required to assess impacts on shipping
routes and international commodity production.
RISK MANAGEMENT
14
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CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
Risk Management
The following were also utilised and/or
considered as part of the risk identification
and assessment methodology.
• Scenario analysis - Comvita took a scenario-
based approach that explored plausible future
scenarios and potential impacts on Comvita
over the different time horizons. Following
an initial context-setting workshop, including
identifying objectives and time frames, the
STEEP (Social, Technological, Economic,
Environmental, Political) framework was used
to help build our climate scenarios. In doing this,
we used the Agriculture Sector Climate Change
Scenarios 2023 (Ag Sector Scenarios) as a
starting point with appropriate adjustments.
These climate scenarios informed both stages
of our initial risk assessment process.
• External process support - Comvita was
supported by Te Whakahaere Āhuarangi
Limited, climate change advisory specialists,
in our first pass climate risk and opportunity
assessment, climate disclosure readiness
assessment, and other aspects of our climate-
related disclosure.
• Quantitative assessment - Modelling of the
anticipated financial impacts will be conducted
in future periods as part of subsequent in-depth
risk assessments.
Time Horizons
Scope and Exclusions
The scope of the climate risk assessment included
all aspects of Comvita’s value chain from Mānuka
forests, apiaries and Olive tree cultivation,
through to in-market sales and distribution,
including all subsidiaries and investments.
No specific components of the value chain were
excluded.
Frequency of Assessment
It is envisaged that the in-depth climate risk
assessment will be undertaken annually moving
forward in preparation for the Climate Change
Risk and Opportunity Report reviewed by the
Leadership Team and provided to the Board
in June each year. An interim update on any
significant changes would be made in November
each year.
Climate-related risks are also monitored regularly
through the Climate Change Risk Register (sub-
register), reviewed by the Sustainability Steering
Group at their meetings. A special review would
be conducted if a significant event occurred or a
significant change in circumstances which could
result in new or changes to risks (or opportunities),
their impacts, and appropriate management.
Monthly updates will be provided to the
Leadership Team, with escalation to the Board for
any significant changes in line with a continuous
review and disclosure approach.
Prioritisation Process
All Comvita Business risks are assessed using a risk
rating matrix based on consequence and likelihood
scale to prioritise risk and then a residual risk is
calculated after controls and mitigation. There
is a focus on mitigation actions, both strategic,
operational and opportunity creation.
Indicator data was used to support semi-
quantitative scoring against risk components
– consequence (exposure, sensitivity, adaptive
capacity) and likelihood. Definitions for scoring
systems were developed from definitions used in
the existing Comvita risk assessment matrices
and were amended where required to relate to
climate risks and the relevant indicators. Likelihood
was scored against each of three future climate
scenarios, for short, medium and long time
frames, based on future climate projections and
projected changes in the likelihood of impacts.
The consequence and likelihood scores align with
existing risk matrices used in assessing Comvita’s
other business risks. Using consistent risk rating
matrices will enable us to incorporate climate risks
within the Comvita Business Risk Register moving
forward.
Overview of Risk Assessment Process
Data Gathering and Analysis
Risk Assessment
Exposure
Rating
Hazard /
Trend Data
Sensitivity
Data
Adaptability
Data
Sensitivity
Rating
Vulnerability
Rating
Consequence Rating
Adaptability
Rating
Receptor
Data
RISK RATING
Likelihood Rating
Short-Term
Risk over the next 2 years out to
2025, in line with Comvita’s current
business planning cycle.
Medium-Term
Risk within the time horizon from
2026 to 2035 (10 years), which
includes Comvita’s next strategic
planning cycle and near-term science-
aligned carbon reduction targets.
Long-Term
Risk from 2035 out to 2075 (40
years) allowing for the 50 year term
of Comvita’s long-term land use
agreements and including Comvita’s
2050 net zero ambition.
15
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COMVITA.CO.NZ
———
Integration of
Climate-Related Risk
within Comvita’s
Overall Risk
Management
Framework
Input from the in-depth climate risk assessment and
regular monitoring by the Sustainability Steering
Group is provided to the Leadership Team monthly.
The Leadership Team considers this information when
updating, prioritising, and reporting on all business
risks to the Board, and reviewing appropriate risk
management within the business strategy. When
evaluating and assessing climate-related risks, the
Leadership eam uses the same process and high-level
risk categories as already developed. When material,
climate-related risks have been incorporated within
existing risks or added as separate risk within the main
Business Risk Register.
Risk Management
16
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COMVITA.CO.NZ
METRICS AND TARGETS
———
GHG Inventory Metrics, Targets,
Preparation & Assurance
Comvita Limited (Global) GHG Inventory Emissions and Removals
4
GHG Protocol Scope (S)
Global GHG Emissions tCO
2
eTrend
FY24FY23FY22
5
% Change FY24 vs. FY22
(Base Year)
TotalFLAG
3
Non-
FLAG
TotalFLAG
6
Non-
FLAG
TotalFLAG
6
Non-
FLAG
TotalFLAG
6
Non-
FLAG
S1 Direct Emissions
1,0528851671,1139032101,0228431793%5%(7%)
S2 Electricity
Indirect Emissions
(location-based)
308164144349213136429221208(28%)(26%)(31%)
S3 Other Indirect
Emissions
24,7193,72620,99333,4827,09326,38930,5535,73924,814(19%)(35%)(15%)
Total Gross Emissions
All Scopes
(excluding Optional &
Biogenic)
26,0794,77521,30434,9448,20926,73532,0046,80325,201(19%)(30%)(15%)
Carbon Sequestration
due to land use change
(1,515)(1,515)n/a(5,850)(5,850)n/a(6,026)(6,026)n/a(75%)(75%)n/a
Biofuel Combustion
2727n/a88n/a5454n/a(49%)(49%)n/a
Total Removals
(1,488)(1,488)n/a(5,842)(5,842)n/a(5,972)(5,972)n/a(75%)(75%)n/a
Net GHG Emissions
(excluding Optional)
24,5913,28721,30429,1022,36726,73526,03283125,201(6%)295%(15%)
Comvita NZ ETS NZUs
7
(3,730)(743) (497)651%
Adjusted Net GHG
Emissions including
Comvita NZUs
20,86128,35925,535(18%)
Enabled NZ ETS NZUs
8
(10,436)(4,263)(1,334)682%
Adjusted Net GHG
Emissions including
Comvita & Other NZUs
10,42524,09624,201(57%)
4
FY24 Total Gross Emissions All Scopes and Total Removals (Carbon sequestration
due to land use change and Biofuel Combustion) were subject to limited
assurance by KPMG. Refer to Comvita's published FY23 and FY22 GHG
Inventory Reports for the details of the limited assurance provided by
Deloitte Limited for these previous reporting periods.
5
The base year for Comvita’s GHG Inventory reporting is FY22
(1 July 2021 to 30 June 2022).
6
FLAG – Forestry, Land and Agriculture emissions as per SBTi guidance.
7
Estimated annual NZUs accrued to Comvita.
Interest in Makino JV has been removed from FY24 and FY23 figures.
8
Estimated annual NZUs accrued to other landowners from Comvita plantings.
Makino JV has been removed from FY24 and FY23 figures.
GHG Inventory Basis of Preparation
Comvita’s GHG inventory has been prepared in
accordance with:
• Greenhouse Gas Protocol: A Corporate Accounting
and Reporting Standard, 2004.
• Greenhouse Gas Protocol: Corporate Value Chain
(Scope 3) Accounting and Reporting Standard, 2011.
The following guidance documents have also been
used in the preparation of this GHG Inventory:
• Greenhouse Gas Protocol: Agricultural Guidance
Interpreting the Corporate Accounting and
Reporting Standard for the Agricultural Sector,
2014.
• Greenhouse Gas Protocol: Scope 2 Guidance, 2015.
• Greenhouse Gas Protocol: Technical Guidance for
Calculating Scope 3 Emissions, 2013.
• Greenhouse Gas Protocol: Land Sector and
Removals Guidance, 2022 (Draft).
Note that Comvita has elected not to report
in accordance with, and have its inventory
assured against, ISO 14064-1: 2018 Greenhouse
gases – Part 1: Specification with guidance at
the organization level for quantification and
reporting of greenhouse gas emissions and
removals, 2019, from FY24. Note that Comvita
has elected not to report in accordance with, and
have its Inventory assured against, ISO 14064-1:
2018 Greenhouse gases – Part 1: Specification
with guidance at the organization level for
quantification and reporting of greenhouse gas
emissions and removals, 2019, from FY24.
Comvita takes an operational control approach.
This means that 100% of the GHG emissions
from operations over which Comvita has control
in the relevant financial year are included.
Further detail on the GHG Inventory basis of
preparation to meet the requirements of NZ CS
and GHG Protocol, including emission factors
and global warming potential (GWP) rates
used, as well as exclusions, data and estimation
uncertainty, and any base year restatement
detail are detailed in Appendix 2 – GHG Inventory
Basis of Preparation.
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CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
Metrics
and Targets
GHG Emissions Intensity
FY24FY23FY22
Trend
% Change
FY24 vs. FY22
Total Revenue NZD000
204,341234,195208,909
Gross GHG Emissions KgCO
2
e per NZD1 of revenue
0.1280.1490.153(17%)
Net GHG Emissions KgCO
2
e per NZD1 of revenue
0.1200.1240.125(4%)
Scope 3 GHG Energy / Industry Emissions
(non-FLAG) KgCO
2
e per NZD1 of revenue
0.103 0.1130.109(6%)
GHG Emissions Intensity
Revenue (denominator) equates to Total Revenue in the Consolidated Income Statement in the Comvita Limited
Financial Statements. Gross GHG Emissions are total gross emissions across all Scopes (excluding Optional and
Biogenic). Net GHG Emissions are Net GHG emissions (excluding Optional) and before any adjustments.
a.
c.
d.
e. ā
Comvita's Global GHG
Emissions and Removals
9
Removals
Scope 2
Scope 3
Scope 1
Scope 2
Scope 3
Scope 1
Percentage of Total
GHG Emissions by
Scope
1%
4%
95%
9
Comvita's FY24 GHG Emissions and Removals have been subject
to limited assurance by KPMG. Refer to Comvita's published
FY23 and FY22 GHG Inventory Reports for the details of the
limited assurance provided by Deloitte Limited for these previous
reporting periods.
tCO
2
e
FY22FY23FY24
Totals
tCO
2
etCO
2
etCO
2
e
(6,026)
1,022
429
30,553
FLAG
FY22FY23FY24
Energy / Industry
xx
1,113
349
33,482
(5,850)
885
164
3,726
(1,515)
7,093
213
903
(5,850)
308
24,719
(1,515)
1,052
FY22FY23FY24
179
208
22,763
210
136
26,389
144
20,993
167
7,790
221
(6,026)
843
18
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
GHG Removals (excluding Biofuel Combustion)
Note that the carbon removals from Comvita’s
interests in the Makino JV have been removed in
FY24 as this interest was divested during the year.
This does not impact our GHG Inventory in any way
as we did not have operational control over these
plantings.
FY24 removals from all managed and owned land
with Mānuka under Comvita’s operational control
and not registered in the ETS decreased by 75% to
1,515 tCO
2
in FY24 versus FY23.
GHG Removals tCO
2
10
FY24FY23FY22
Trend
% Change
FY24 vs.
FY22
a) Comvita owned and/or managed carbon removals
11
1,5155,8506,026(75%)
b) Comvita NZUs from Comvita-owned land
and forests
11,12
2,316 - - n/a
c) Comvita's share of NZUs from forests under
long-term land use agreements
(estimated annual accrual)
12,13
1,414743497185%
d) Comvita enabled NZUs acrrued to other
landowners from Comvita plantings
(estimated annual accrual)
12,13
10,4364,2631,334682%
Total annual removals from Mānuka forests planted
and Comvita owned native
15,68110,8567,857100%
Total removals used in Comvita's GHG Inventory1,5155,8506,026(75%)
This decrease was due to the registration of
some forests in the NZ ETS, meaning we do not
have operational control over all the removals
and cannot include them in our GHG Inventory.
In some cases, Comvita then receives a share of
the registered NZUs relating to these properties.
Total removals from all Comvita Mānuka plantings
(regardless of whether under operational control
and registered under the ETS) increased by 44% to
15,681 tCO
2
for FY24.
Metrics
and Targets
11
Comvita's FY24 owned and/or managed carbon removals have been subject
to limited assurance by KPMG. Refer to Comvita's published FY23 and FY22
GHG Inventory Reports for the details of the limited assurance
provided by Deloitte Limited for these previous reporting periods.
12
NZUs estimates as registration still in progress through ETS.
13
Makino JV has been removed from FY24 and FY23 figures.
10
Comvita has changed its approach to measuring removals resulting
in NZUs for FY24. Previously we recognised NZUs at the end of
each Mandatory Emissions Return Period (MERP), which results
in significant variability and difficulty when comparing against
annual "pure" (non-ETS) removals generated. From FY24 we will
estimate annual NZUs accrued, which will be formally registered in
the ETS in due course.
19
COMVITA.CO.NZ
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
2024
Annual NZUs accrued to
Comvita
16
Removals
15
Removals
15
Cumulative enabled NZ
ETS NZUs
19
Enabled NZ ETS NZUs
17
Cumulative NZUs accrued
to Comvita
18
Comvita Annual Carbon Removals Since Establishment
14
Comvita Cumulative Carbon Removals Since Establishment
14
Metrics
and Targets
999
1,616
2,393
3,940
5,906
7,240
21,939
70,578 72,39074,43076,85480,15386,17993,544
141
332
829
11,503
92,029
1,572
5,302
FY17FY18FY19FY20
FY21
FY22
FY23FY24
tCO
2
e
GHG Emissions Targets
14
Comvita is investigating setting validated near-
term and longer-term (Net Zero) science-based
targets (SBTs) for carbon reduction in line with
Science Based Targets initiative (SBTi) guidance.
Such reduction is in line with the Paris Agreement
goals to pursue efforts to limit the temperature
increase to 1.5
o
C above pre-industrial levels.
In line with SBTi guidance, Comvita is required
to set separate Forestry, Land and Agriculture
(FLAG) sector targets as well as energy/industry
targets. Comvita has defined the FLAG boundary
as including Mānuka forests and apiary operations
up to the farm gate plus purchased honey from
external suppliers. The FLAG guidance allows
for the netting off of FLAG removals from FLAG
emissions. This means we can “inset” and net off
the removals from the Mānuka forests within our
operational control that are not registered under
the New Zealand Emissions Trading Scheme (ETS).
Comvita has developed draft near term (2030) and
longer term (2050) Net Zero FLAG and energy/
industry science-based targets in line with current
SBTi guidance, but these are yet to be validated.
These are generally absolute targets, with a
possible intensity target for Scope 3 Non-FLAG. At
a high level SBTs require approximately a 6% to 7%
reduction in GHG emissions per annum from the
base year of FY22.
14
Makino JV has been removed from FY17 to FY24.
15
Comvita's FY24 Removals have been subject to limited assurance by
KPMG. Refer to Comvita's published FY23 and FY22 GHG Inventory
Reports for the details of the limited assurance provided by Deloitte
Limited for these previous reporting periods.
16
Estimated annual NZUs accrued to Comvita.
17
Estimated annual NZUs accrued to other landowners from
Comvita plantings.
18
Estimated cumulative NZUs accrued to Comvita.
19
Estimated cumulative NZUs accrued to other landowners from
Comvita plantings.
tCO
2
e
457
617
777
1,547
10,436
1,627 1,812 2,0402,4243,2996,0261,515
191
141
497
5,850
743
3,730
FY17FY18FY19FY20
FY21
FY22
FY23FY24
1,966
1,334
4,263
20
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
In FY24 we had a 25% reduction in gross emissions
and a 16% reduction in net emissions from FY23.
FY24 was a 20% reduction in gross emissions and
an 8% reduction in net emissions from FY22 (base
year). The lower reduction in net emissions was
due to the significant decline in removals we could
include in our GHG Inventory. The decrease in
our gross emissions was due to less sales-related
activity, optimising external honey purchases,
supply chain efficiencies, and supplier GHG
measurement improvements and reductions.
20
Our GHG gross emissions intensity decreased by
14% to 0.128kgCO
2
e per NZD1.
Any carbon reduction SBTs will incorporate, and be
consistent, with Comvita’s initial science-aligned
target set in 2021 to reduce New Zealand FY21
Scope 1 and 2 emissions by 50% by 2030. Our
FY24 results show a 7% reduction in the relevant
New Zealand emissions from 2021 (base year).
Comvita is committed to prioritising GHG
emissions reduction in the first instance over
purchasing external carbon credits to use for
offsetting. Comvita has previously stated its
aspiration to be carbon neutral in FY25. This
objective could still be achieved in FY25 through
purchasing carbon credits for the remaining
balance of net emissions (after insetting).
Given the current market trading and financial
conditions, we do not think it prudent to be
investing in carbon credits so that we can state
we are carbon neutral in 2025. We propose to
review our aims once we have investigated SBTs,
further developed our supporting decarbonisation
strategy, have alignment of carbon reduction
plans with key suppliers, and our land portfolio is
finalised.
We note the difficulty in abating some emissions
in the short-term. This may be impacted by
the current lack of appropriate technology, for
example electric utility vehicles with required
capability for hive management. Comvita
anticipates exploring using high quality and
certified carbon credits to meet its carbon
reduction targets nearer term and in relation to
hard to abate emission areas.
Assurance of GHG Inventory
Comvita engaged KPMG to undertake voluntary
limited assurance over Scope 1, 2 and 3 GHG
emissions and removals included in the GHG
inventory for FY24. Such assurance is explained
further in the KPMG Independent Assurance
Report included at the end of this Comvita
Climate Statement.
Refer to Comvita's published FY23 and FY22 GHG
Inventory Reports for the details of the limited
assurance provided by Deloitte Limited for these
previous reporting periods.
Metrics
and Targets
20
Refer to Appendix 2 - GHG Inventory Basis of Preparation,
GHG Emission and Removal Factors and GWP Values, for further
information on supplier specific emission factors.
21
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
Risk Exposure and Opportunity Alignment Metrics
and Targets
As previously mentioned, Comvita is still working
through its detailed risk assessment, detailed
quantitative modelling of its financial impacts,
and transition plan aspects of its strategy, it has
not yet determined comprehensively the best
metrics and appropriate targets to measure and
manage all of its climate-related transition risks,
physical risks and opportunities. Focus is required
particularly around the exposure of Comvita’s
physical assets and global distribution facilities and
networks.
———
Other Climate-Related
Metrics and Targets
From our first pass risk assessment Comvita has
identified the following metrics and targets (where
applicable) to assist in managing climate-related
risks and opportunities moving forward. The base
year for the targets which have been developed
has been specified in the table below. The metrics
and targets will be finalised, with appropriate new
metrics and targets added and disclosed in our
FY25 Comvita Climate Statement. Comparative
information has been provided where available.
Some of these metrics have also been reported on
in previous periods.
MetricFY24FY23FY22
Trend %
Change
FY24
vs. Base
Year
Target
Time
Frame
Base
Year
Percentage Variation in Hive Yield (Kg Per Hive)
21
Measure of impact on
productivity and effectiveness
of tree, bee and hive
management adaptation
35%-27%28%25%
Variation
>0%
(positive)
Ongoing
Average
FY15-
FY24
(10 years)
Number of Climate-Related Health & Safety Incidents
22
Measure of exposure and
adequacy of risk management
systems & emergency responses
0200%0OngoingFY22
Sustainability Performance Score in Staff Survey
23
Proxy for staff perception of
adequacy of climate change
response
80%83%
Not
available
(3%)>75%
Ongoing
FY23
NZ ETS NZU Price as Proportion of Global Average Unit Price
24
Signal of export market and
relative NZ positioning
25
41% 30%48%(7%)
n/a (No
ability to
directly
influence)
OngoingFY22
Industry-Based Metrics, other Key Performance Indicators and Targets Identified to Date
21
Variation calculated by calculating percentage difference between
current year’s average kilograms per hive (yield) compared to 10
years average yield from FY15 to FY24 (baseline) based on Comvita’s
internal records.
22
Incident data recorded under Comvita’s Health and Safety
Management System, where the cause of such incidents was related
to a climate-related event.
23
Average percentage score (out of 100%) by all Comvita global staff
who responded to question “I believe that Comvita places a high
priority on managing its impact on the environment” in most recent
staff survey prior to the reporting date.
24
Percentage calculated by dividing NZ ETS NZU spot price by European
ETS EUA spot price (current proxy) as at 30 June each year.
Exchange Rate for all years €1 = NZD1.76.
25
Signal of how NZ is positioned and effectiveness of NZ government
policy versus our export partners. To date climate-related trade
measures (i.e. CBAMS) have been based on differential between
export market and domestic price imposed on emissions.
22
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
Capital Deployment
Comvita is still in the process of developing its
detailed Climate Transition Plan and detailing
the targeted amount of different investment
required to achieve its climate adaptation and
reduction goals. Not all activity requires specific
capital investment, for example, engagement
with suppliers regarding their carbon
measurement and reduction.
Internal Emissions Price
Comvita has established an initial nominal price
of carbon of $171 per metric tonne of CO
2
e to be
incorporated in its decision-making processes, for
example capital expenditure approvals. Comvita
is in the early stages of implementing an internal
cost of carbon and at this stage has based
this cost on the NZ Treasury’s Recommended
Emissions Values, ‘Central’ case for 2030
(The Treasury New Zealand (2023)). We selected
this value, instead of the current or projected
ETS NZU price, as we believe the ETS price is
too low in capturing the economic implications
of the decisions and investments we are making
for our climate-related risks and opportunities.
This price and future targets will be reviewed as
the organisation’s carbon management maturity
increases and to ensure it drives appropriate
decision-making around investment and other
operational activity.
Remuneration
Comvita’s short term incentive (STI) scheme
is linked to both company and individual
performance. To date we have not linked
remuneration across all management to
climate-related risks and opportunities, or
other environment or social (ESG) objectives.
Consideration is being given to agreeing a
percentage to be linked to ESG performance in
the future and will be developed and agreed in line
with our usual processes relating to management
remuneration and performance. The nature and
weighting of such targets will be influenced by the
further work around Comvita’s Climate Transition
Plan.
While management remuneration generally is
not directly linked to climate-related risks and
opportunities, there are indirect links through
team and individual performance measures.
Our Apiary function’s STI assessment has a
component for Apiary net contribution, which is
heavily influenced by hive yields (see metric and
target above). Similarly, some Sustainability Team
members have individual performance measures
linked to climate action.
Metrics
and Targets
23
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
GOVERNANCE
APPENDIX 1
This Appendix includes additional results detail
to meet the requirements and guidance of the
Greenhouse Gas Protocol, and which may not be
specifically required by NZ CS.
———
GHG Inventory Results FY24
26
1.1.
1.2.
1.3.
Total GHG Emissions and Removals by Category
Total GHG Emissions by Category, Activity and Facility
Total GHG Emissions by Greenhouse Gas
Comvita New Zealand Scope 1 and 2 Emissions
26
Comvita's GHG Inventory Results for FY24 have been subject to
limited assurance by KPMG. Refer to Comvita's published FY23
and FY22 GHG Inventory Reports for the details of the limited
assurance provided by Deloitte Limited for the results in these
previous reporting periods.
24
20242024
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
CLIMATE S TATEMENT
COMVITA.CO.NZ
GHG Protocol Scope (S) / Category (C) GHG Emissions tCO
2
e
FY24FY23FY22
TotalFLAG
28
Non-FLAG
Category as % of
Total Emissions
29
Total FLAG
28
Non-FLAG Total FLAG
28
Non-FLAG
S1
Direct Emissions1,0528851674.0%1,1139032101,022843179
Mechanical sources
1,0458781674.0%1,0978872101,006828179
Non-mechanical sources
77n/a0.0%1616n/a1616n/a
S2
Electricity Indirect Emissions3081641441.2%349213136429221208
Electricity consumption (location-based)
3081641441.2%349213136429221208
S3Other Indirect Emissions24,7193,72620,99394.8%33,4827,09326,38930,5535,73924,814
S3C1 Purchased goods & services
19,1253,72615,39973.3%25,6197,09318,52623,7445,73918,005
S3C2 Capital goods
957n/a9573.7%2,480n/a2,4802,008n/a2,008
S3C3 Fuel- & energy-related activities
363n/a3631.4%401n/a401332n/a332
S3C4 Upstream transportation & distribution
1,698n/a1,6986.5%2,398n/a2,3982,129n/a2,129
S3C5 Waste generated in operations
26n/a260.1%28n/a2838n/a38
S3C6 Business travel
407n/a4071.6%265n/a265121n/a121
S3C7 Employee commuting
702n/a7022.7%536n/a536460n/a460
S3C8 Upstream leased assets
79n/a790.3%18n/a1824n/a24
S3C9 Downstream transportation & distribution
464n/a4641.8%711n/a711662n/a662
S3C10 Processing of sold products
0n/a00.0%10n/a103n/a3
S3C12 End of life treatment of sold products
796n/a7963.1%875n/a875863n/a863
S3C15 Investments
102n/a1020.4%141n/a141152n/a152
Biogenic Emissions and Removals
30
(1,488)(1,488)n/a(5,842)(5,842)n/a(5,972)(5,972)n/a
Carbon sequestration due to land use change
(1,515)(1,515)n/a(5,850)(5,850)n/a(6,026)(6,026)n/a
Biofuel combustion
2727n/a88n/a5454n/a
Optional Reporting
31
80n/a8017801781081395
S3C6 Business travel – hotel stays
220222902915015
S3C7 Employee commuting working from home
580581490149931380
Total GHG Emissions All Scopes (excluding Optional and Biogenic)26,0794,77521,30434,9448,20926,73532,0048,85423,150
Net GHG Emissions (excluding Optional)24,5913,28721,30429,1022,36726,73526,0322,88223,150
Total GHG Emissions and Removals by Category
27
Appendix 1
GHG Inventory
Results FY24
27
FY24 GHG Emissions and Removals by Category were subject to limited assurance by KPMG.
Refer to Comvita's published FY23 and FY22 GHG Inventory Reports for the details of the limited assurance provided by Deloitte Limited for these previous reporting periods.
28
Emissions arising from activities in the Forestry, Land, and Agriculture sector. Companies with significant FLAG emissions must set separate science-based targets for FLAG and Non-FLAG emissions.
29
Percentage of total emissions excluding Optional and Biogenic.
30
Total applies a negative value to removals.
31
Optional reporting must not be included in science-based targets, so is separated from the main categories.
20242024
25
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
S1Direct Emissions
837189
26n/an/an/a1,052
Mechanical sources83418526n/an/an/a1,045
- Stationary combustion7978n/an/an/an/a157
- Mobile combustion75210726n/an/an/a885
- Fugitive emissions3n/an/an/an/an/a3
Non-mechanical sources34n/an/an/an/a7
- Soil N
2
O emissions34n/an/an/an/a7
- Soil C0
2
emissions - liming0n/an/an/an/an/a0
S2 Electricity Indirect Emissions (location-based)
92
15462n/a
n/an/a308
Electricity consumption9215462n/an/an/a308
- Electricity consumpion (location-based)9215462n/an/an/a308
- Electricity consumpion (market-based)9716862n/an/an/a327
S3Other Indirect Emissions
12,9821,3678,8383551,07510224,719
S3C1 Purchased goods & services
10,2598827,061303619n/a19,124
S3C2 Capital goods820904331n/a957
S3C3 Fuel- & energy-related activities 22710531n/an/an/a363
S3C4 Upstream transportation & distribution9179253017143n/a1,699
S3C5 Waste generated in operations 205000n/a25
S3C6 Business travel 2334131930n/a407
S3C7 Employee commuting 3345929883n/a702
S3C8 Upstream leased assets 127122n/a78
S3C9 Downstream transportation & distribution60821496169n/a466
S3C10 Processing of sold products
n/an/a0n/a0n/a0
S3C12 End of life treatment of sold products 111465247108n/a796
S3C15 Investments n/an/an/an/an/a102102
Total Gross GHG Emissions All Scopes
(excluding Optional & Biogenic)
13,9111,7108,9263551,07510226,079
GHG Protocol Scope (S)
/ Category (C)
New
Zealand
AustraliaAsiaEMEA
North
America
Invest
ments
Comvita
Limited
GHG Emissions tCO
2
e
Total GHG Emissions and Removals by Category, Activity & Facility FY24
32
32
Comvita's FY24 Total GHG Emissions and Removals by
Category, Activity & Facility have been subject to limited
assurance by KPMG.
26
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
CO
2
CH
4
N
2
OHFCSF
6
PFCNF
3
TOTAL
CO
2
e
S1
Direct GHG emissions1,02731930001,052
Mechanical Sources1,02531430001,045
- Stationary combustion
156100000157
- Mobile combustion
8692140000885
- Fugitive emissions
00030003
Non-Mechanical Sources20500007
- Soil N
2
O emissions
20500007
- Soil C0
2
emissions - liming 0
0000000
S2Electricity Indirect Emissions 299810000308
Electricity consumption
299810000308
GHG Protocol Scope (S) / Category (C)
GHG Emissions tCO
2
e
Appendix 1
GHG Inventory
Results FY24
Total GHG Emissions by Greenhouse Gas FY24 (Scope 1 & 2 only)
33
7%
53%
4%
0.4%
1%
34%
Comvita New Zealand Scope 1 & 2 Emissions
34
35
The base year for Comvita NZ's Scope 1 and 2 emissions reporting is
FY21 (1 July 2020 to 30 June 2021).
33
Comvita's FY24 Total GHG Emissions by Greenhouse Gas have been
subject to limited assurance by KPMG.
34
Comvita's FY24 New Zealand Scope 1 & 2 Emissions have been subject
to limited assurance by KPMG. Refer to Comvita's published FY23 and
FY22 GHG Inventory Reports for the details of the limited assurance
provided by Deloitte Limited for these previous reporting periods.
FY21 figures were not subject to assurance.
GHG Protocol Scope (S)
NZ GHG Emissions tCO
2
eTrend
FY24FY23FY22FY21
35
% Change
FY24 vs.
FY21
S1 Direct Emissions8378648048291%
S2 Indirect Emissions9290155176(48%)
Total NZ Scope 1 and 2 GHG Emissions
9299549591,005(8%)
Percentage of GHG
Emissions by Region
North America
Investments
EMEA
Australia
Asia
New Zealand
27
20242024
CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
This Appendix includes information on the standards,
scope and methodologies used to calculate Comvita’s
GHG Inventory FY24, and other relevant detail, to meet the
requirements of NZ CS and Greenhouse Gas Protocol.
———
GHG Inventory
Basis of Preparation
36
2.1.
2.2.
2.3.
2.4.
2.5.
2.6.
2.7.
2.8.
2.9.
2.10.
2.11.
GHG Information Management & Monitoring Procedures
Compliance with Standards
Consolidation Approach
GHG Emissions & Removal Factors & GWP Values
Base Year & Base Year Recalculation
Organisational Boundaries
Operational Boundaries
GHG Emissions, Sinks & Removals
Emission Source Exclusions
Emission Source Inclusions
Quantification Methodologies & Impact of Uncertainty
APPENDIX 2
36
Comvita's GHG Inventory Basis of Preparation for FY24 has been
subject to limited assurance by KPMG.
28
20242024
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
GHG Information Management and Monitoring
Procedures
Comvita’s GHG Inventory has been prepared in line
with Comvita’s internal Greenhouse Gas Inventory
Management and Monitoring Procedures,
which have been developed to ensure inventory
measurement is in accordance with the GHG
Protocol. These Procedures are subject to review
Comvita uses supplier specific emission factors for
calculating emissions from products purchased
from those suppliers where they are, or become,
available, as more accurately reflecting actual
emissions of the supplier versus generic industry
emission factors. These supplier-specific factors
are provided directly and/or calculated based on
activity data or corporate level emissions. In FY24
Comvita moved to using two new supplier specific
emission factors, which included marketing services
procured from a significant supplier in China. The
marketing services supplier emission factor was
based on an audited corporate level GHG inventory,
calculating the emissions per dollar of revenue
earnt and applying Comvita’s spend to this.
annually, considering improvement opportunities,
and recommendations from the formal assurance
processes. Any changes to this document will
be approved by the Chief Financial Officer and
any material changes in assumptions will be
communicated to Comvita’s Board of Directors.
GHG Emission and Removal Factors and GWP Values
Appendix 2
GHG Inventory
Basis of Preparation
Emissions Factors
Provided By
Source
Published
Year
Global Warming
Potential 100
(GWP 100)
New Zealand Ministry for
the Environment
Measuring emissions: A guide for
organisations: 2024 summary of emission
factors
2024IPCC AR5
BraveTrace (previously
known as NZECS)
Residual Supply Mix for electricity certification2024IPCC AR6
New Zealand Ministry for
Primary Industries
Carbon Look-up Tables for Forestry in the
Emissions Trading Scheme
2017
Australian Department of
Climate Change Energy,
the Environment and
Water
National Greenhouse Accounts Factors: 20232023IPCC AR5
UK GovernmentUK Government GHG Conversion Factors for
Company Reporting – 2024
2024IPCC AR4
IPCC AR5
UK GovernmentUK Government GHG Conversion Factors for
Company Reporting – 2018
2018IPCC AR4
Thinkstep-anz based
on LCA conducted for
Comvita's Honey in a Pot
GaBi (Sphera) LCA Database – Service pack
2021.2
2022IPCC AR5
Worldmrio - EoraEora licence - Scope 3 multipliers
37
2017IPCC AR4
Carbon FootprintCountry specific electricity grid greenhouse
gas emission factors
2023Various
Other publicly available
reports
MultipleMultipleVarious
Comvita's suppliersMultipleMultipleUnknown
37
EORA 2017 emission factors inflated to 2023 for China and USA
and to Quarter 2 2023 for NZ and Australia by applying relevant
country inflation rates.
This corporate level emission factor is more specific
to the supplier and therefore more accurate than
the very broad industry related China “Wholesale
and Retail Trade” Eora factor used previously, which
was the best available. Comvita has not restated
its previous reporting periods’ emissions as the
supplier data points are not available for years prior
to FY24. Further, Comvita has not backcast the FY24
emission factor as this does not allow for carbon
reductions achieved by the supplier. Approximately
5% of the 25% reduction in total gross emissions in
FY24, compared to FY23, is due to the application of
the significant supplier specific emission factor, with
a portion of this relating to the lower more accurate
emission factor and the remainder due to genuine
supplier emission reduction.
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Sequestration rates for Mānuka have been
calculated using the Ministry for Primary
Industries’ (MPI) Carbon Look-up Table 2
(MPI: Carbon Look-up Tables for Forestry in
the Emissions Trading Scheme, 2017).
Anthropogenic biogenic CO
2
emissions and
removals are quantified separately in
tonnes of CO
2
e.
Anthropogenic biogenic emissions of other GHGs
(e.g. CH
4
and N
2
O from combustion of biofuels)
have been quantified and reported with the other
direct emissions in Scope 1.
Base Year and Base Year Recalculation
The base year for Comvita’s GHG Inventory
reporting, and associated metrics and targets,
is FY22 (1 July 2021 to 30 June 2022). This is
consistent with previous reporting periods.
There have been no material changes in FY24
requiring Comvita to restate its base year GHG
Inventory. We have allowed for the change in
operational boundaries for FY24 with Comvita
Singapore Pte Limited becoming operational. In
FY24, we moved to including full well-to-wheel
emissions associated with transport-related
emission sources, rather than tank-to-wheel,
which was used in previous reporting periods.
While well-to-tank is not explicitly required
under the GHG Protocol, it has been included
within the GHG Inventory to align with Science
Based Targets initiative (SBTi) requirements.
Some errors have been identified in activity data
provided and emission factors used. These were
corrected in FY24. The changes and corrections
made in FY24 do not meet the threshold set out
in the Comvita GHG Information Management
and Monitoring Procedures requiring that the
base year be recalculated and restated in the
event of significant changes (>±5% of the total
Inventory). Restatement may be considered if
Comvita validates its science-based targets with
SBTi.
Organisational Boundaries
Organisational boundaries were set with
reference to the methodology described in the
GHG Protocol.
The Organisational Boundaries, and exclusions,
are defined in Appendix 3. All entities have been
included, subsidiaries, associates, joint ventures
and investments as at 30 June 2024.
Comvita has defined facilities generally as
being at a region level, apart from Australia and
New Zealand where Comvita has production
facilities, which are each reported on at a
country level. All entities outside Comvita's
operational control are grouped into a single
‘Investments’ facility, covering Comvita's equity
share of emissions and removals. The New Zealand
facility includes emissions arising from Comvita’s
core activities associated with the production
of Mānuka honey and manufacturing of honey
and bee-related products, as well as market
support and New Zealand sales and distribution.
The Australia facility includes emissions arising
from the production and manufacturing of
Olive Leaf products, as well as local distribution.
Comvita’s activities in all other regions are sales
and distribution only. Data is captured at a
more granular level for internal use. Comvita’s
organisational structure is included in Appendix3
and shows how the entities are grouped into
facilities.
Consistent with previous reporting periods, this
GHG Inventory is for the whole of Comvita for
the year ended 30 June 2024. The only change
to the organisational boundary from FY23 is
the divestment of Comvita’s shareholding in
the Makino Joint Venture, which took place in
June 2024. No emissions have previously been
included from the Makino Joint Venture in the
GHG Inventory as it was not within operational
control and there were no Scope 1 and 2 emissions
associated with its operations. In previous
reporting periods, removals (NZUs) from the
Makino Joint Venture were identified separately.
All Makino Joint Venture NZUs have now been
removed from FY24 and previous periods. Any
entities deregistered in FY23 have been removed
from the structure diagram.
Operational Boundaries
A review of the operations and activities of all
Comvita’s entities, subsidiaries, associates, joint
ventures, and investments is conducted annually
using the GHG Protocol Scopes and Categories to
identify the emissions and removals relevant for
each area.
Activity contributing to all relevant seven Kyoto
gases is considered for the Comvita GHG
Inventory: carbon dioxide (CO
2
), methane (CH
4
),
nitrous oxide (N
2
O), hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs), sulphur hexafluoride
(SF
6
), and nitrogen trifluoride (NF
3
), of which only
the first four gases are relevant for Comvita.
A materiality (or significance) threshold of
1% of total emissions per Scope is applied to
identify each of the emission sources, Scopes
and Categories. If emissions from a particular
Scope or Category exceeds this threshold, it is
classified as ‘material’ in the context of each
Scope. Sources below this threshold are classified
as immaterial. No emission sources have been
deliberately excluded from the Inventory, irrelevant
of materiality, rather the materiality threshold has
been used to determine the level of detail required,
with more effort expended to improve the
accuracy and certainty of more material sources.
Appendix 2
GHG Inventory
Basis of Preparation
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GHG Emissions Sinks and Removals
Comvita has reviewed its land use arrangements
to identify its biogenic CO
2
removals and GHG
sinks from existing Mānuka and native bush
and planted Mānuka forests, that are within its
operational control.
• Comvita owned land – 100% of removals from
Comvita planted Mānuka and pre-existing
Mānuka and native bush are within Comvita’s
operational control and are reported in
Comvita’s GHG Inventory.
• Comvita operated plantings - 100% of
removals from Mānuka forests within Comvita's
operational control are reported in Comvita's
GHG Inventory.
• ETS forests excluded - Comvita has not included
within its removals in the GHG Inventory, and has
reported on separately, any forests on land which
is, or is intended to be, registered under the New
Zealand Emission Trading Scheme (ETS) and in
respect of which New Zealand Units (NZUs) have
been, or will be, granted.
Emission Source Exclusions
The emissions from external warehousing have been
excluded in most cases due to being de minimis.
Emission Source Inclusions
Appendix 2
GHG Inventory
Basis of Preparation
GHG Protocol Scope (S) / Category (C)
New
Zealand
AustraliaAsiaEMEA
North
America
Investments
S1Direct Emissions
Mechanical Sources
RelevantRelevantn/an/an/an/a
- Stationary combustionRelevantRelevantn/an/an/an/a
- Mobile combustionRelevantRelevantn/an/an/an/a
- Process emissionsn/an/an/an/an/an/a
- Fugitive emissionsRelevantn/an/an/an/an/a
Non-mechanical sourceRelevantRelevantn/an/an/an/a
S2Electricity Indirect Emissions
ElectricityRelevantRelevantRelevantn/an/an/a
S3Other Indirect Emissions
S3C1 Purchased goods & services
RelevantRelevantRelevantRelevantRelevantn/a
S3C2 Capital goodsRelevantRelevantRelevantRelevantRelevantn/a
S3C3 Fuel- and energy-related activitiesRelevantRelevantRelevantn/an/an/a
S3C4 Upstream transport & distributionRelevantRelevantRelevantRelevantRelevantn/a
S3C5 WasteRelevantRelevantRelevantRelevantRelevantn/a
S3C6 Business travelRelevantRelevantRelevantRelevantRelevantn/a
S3C7 Employee commutingRelevantRelevantRelevantRelevantRelevantn/a
S3C8 Upstream leased assetsRelevantRelevantRelevantRelevantRelevantn/a
S3C9 Downstream transport & distributionRelevantRelevantRelevantRelevantRelevantn/a
S3C10 Processing of sold productsn/an/aRelevantn/aRelevantn/a
S3C11 Use of sold products
38
n/an/an/an/an/an/a
S3C12 End of life of sold products
RelevantRelevantRelevantRelevantRelevantn/a
S3C13 Downstream leased assetsn/an/an/an/an/an/a
S3C14 Franchisesn/an/an/an/an/an/a
S3C15 Investmentsn/an/an/an/an/aRelevant
BBiogenic Emissions and Removals
Biogenic CO
2
Fluxes
39
n/an/an/an/an/an/a
Biogenic CO
2
Removals
40
RelevantRelevantn/an/an/an/a
Biogenic CO
2
Emissions
41
Relevantn/an/an/an/an/a
OOptional Reporting
S3C6 Business travel - hotel stays
RelevantRelevantRelevantRelevantRelevantn/a
S3C7 Employee commuting -
working from home
RelevantRelevantRelevantRelevantRelevantn/a
40
Carbon sequestration due to land use change from
Mānuka plantings.
41
Biofuel combustion from burning.
38
Emissions associated with consumption of
honey and other end products is de minimis.
39
Land use management. Uptake and emissions of CO
2
through biogenic means, such as the growing of crops.
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Quantification Methodologies and Impact of Uncertainty
Appendix 2
GHG Inventory
Basis of Preparation
S1
Direct GHG Emissions
Mechanical
Sources
4%Fuel-based100%n/a3.91
Fuel use data in owned and leased vehicles is
collected from fuel card and farm fuel tank records.
Some minor usage estimated from staff expense
claims using FY24 average fuel price. LPG use data is
from invoices. Refrigerant top-up data is provided by
maintenance supplier records. The quantity of wood
burned on apiary sites is estimated based on the
number of hive boxes. Overall uncertainty is very low.
Non-mechanical
sources
0.03%IPCC Tier 1100%n/a1.99
Quantities of nitrogen are calculated from fertiliser
use data from site records and stated composition.
Soil emission factors are taken from MfE, based
on IPCC Tier 1. The accuracy of the method is
considered to be adequate, given the relatively small
emissions from this sub-category.
S2
Indirect GHG emissions from imported energy
Electricity
consumption
1%Location-
based
approach
100%n/a4.00
Usage data predominantly captured from electricity
invoicing, with some minor sources calculated from
spend. Inventory is calculated using location-based
methodology. Market-based emissions have also
been calculated, using location-based grid mix
emission factors where residual grid mix factors
were not available.
S3
Other Indirect GHG emissions
S3C1
Purchased
Goods &
Services
73%3%1.83
Very high overall uncertainty for this most
significant category. It should be noted that the Eora
EIO-LCA emission factors used for the spend-based
method are based on top-down analysis and tend
to result in higher calculated emissions than other
methods, and so emissions for this category would
be expected to decrease with improved data such as
supplier-specific emissions factors. This conservative
approach also results in spend-based emissions
appearing to be more dominant in the Inventory
overall, and does not necessarily imply that these
emissions are the most significant or important to
Comvita.
S3C2
Capital Goods
4%2%1.00
Supplier-specific emission factors applied to IT
equipment and software. Material mass data
collected for significant capital projects where
possible, with emission factors sourced from
region-specific Environmental Product Declarations.
Generic Eora EIO-LCA emission factors applied to
all other capital spend. Very high uncertainty but
relatively low materiality.
GHG Protocol
Scope (S) /
Category (C)
% of Comvita’s total GHG emissionsGHG Protocol calculation method% of emissions by method for each sub-category% emissions based on data provided by suppliers/value chain partners
42
activity data certainty - calculated (4=high, 1=low)
43
Description of
methodology
and uncertainty
Spend-based 66%
Average-data 27%
Hybrid 5%
Supplier-specific
2%
Spend-based 98%
Average-data 0%
Supplier-
specific
2%
42
Data provided by suppliers/value chain partners refers to supplier-specific emissions, emission factors or distance data which is specific to suppliers' activities.
43
Activity data certainty is based on a Certainty Score (1-4) for each activity data used for calculations. Score 4 (high)= Measured e.g. invoices, Score 3 (medium-high) =
Calculated, Score 2 (medium-low)=Literature, Score 1 (Low)=Estimate. The score is weighted by emissions.
32
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Appendix 2
GHG Inventory
Basis of Preparation
S3C3
Fuel- and
energy-related
activities
1%Average-
data
100%0%3.99
Data collected as per Scope 1 and 2. Very low
uncertainty and materiality.
S3C4
44
Upstream
Transport and
Distribution
7%98%2.90
Mainfreight reports provide supplier-specific
emissions for majority of Comvita-commissioned
transport and distribution. Other logistics
companies provide tonne.kilometre and warehousing
activity data. The most significant inbound material
is honey from various apiaries, for which Comvita
commissions the freight.Sugar syrup is also a
significant inbound material, and tonne.kilometre
data has been calculated from supplier locations.
The transport of other raw materials and packaging
has been calculated using estimated distances.
Overall uncertainty is low to moderate.
S3C5
Waste
0.1%Waste-
type-specific
0%3.32
Waste type and quantity data collated from supplier
reports. Uncertainty is low and adequate to the
materiality of the category.
S3C6
44
Business Travel
2%58%3.19
Majority of travel data for New Zealand and China
is provided by travel agency reports, supplemented
with internal records for other markets. Additional
distances are estimated from expense claims.
Uncertainty is low and adequate to the materiality
of the category.
S3C7
44
Employee
Commuting
3%Distance-based 0%1.00
Employee commuting survey carried out for each
region and used to estimate overall commuting
habits, modes and distances. Response rate of
48% across the business. High uncertainty, but low
impact due to materiality of the category.
S3C8
44
Upstream
Leased Assets
0.3%Average-data 100%0%3.97
Area of retail and office space collected from lease
records. Emissions calculated based on average
energy intensity for retail and office space in
Australia, with country-specific electricity emission
factors. Uncertainty is medium-high, but considered
adequate to the materiality of the category.
S3C9
44
Downstream
Transport and
Distribution
2%0%1.01
Transport and Distribution data was not
available from downstream partners, so have
been conservatively estimated for each market.
Emissions are also estimated for repackaging of
products for digital sales and some customer-
specific repackaging. Overall uncertainty is very high,
although calculated emissions are relatively small,
and the approach is considered adequate to the
materiality of the category.
Supplier-specific 44%
Distance-based 33%
Site-specific 22%
Spend-based 0%
Distance-based 99%
Spend-based 1%
Distance-based 48%
Average-data 52%
100%
100%
42
Data provided by suppliers/value chain partners refers to supplier-
specific emissions, emission factors or distance data which is
specific to suppliers' activities.
43
Activity data certainty is based on a Certainty Score (1-4) for each
activity data used for calculations. Score 4 (high)= Measured e.g.
invoices, Score 3 (medium-high) = Calculated, Score 2 (medium-
low)=Literature, Score 1 (Low)=Estimate. The score is weighted by
emissions.
GHG Protocol
Scope (S) /
Category (C)
% of Comvita’s total GHG emissionsGHG Protocol calculation method% of emissions by method for each sub-category% emissions based on data provided by suppliers/value chain partners
42
activity data certainty - calculated (4=high, 1=low)
43
Description of
methodology
and uncertainty
44
All transport emissions have been calculated on a
well-to-wheel basis.
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Appendix 2
GHG Inventory
Basis of Preparation
S3C10
44
Processing of
Sold Products
0% Average 100%0%1.00
Quantities of product sold for further processing
collated from sales data. Emissions are estimated
based on supplier-specific energy data collected for
contract manufacturing, used as proxies based on
the intended manufacturing process. Uncertainty is
medium, and considered adequate to the materiality
of the category.
S3C12
End of Life of
Sold Products
3%Waste-type-
specific
100%0%1.00
Packaging mass data collated from purchased
packaging and packaging used in contract
manufacturing (both assigned by market based
on proportion of total sales), and estimates of
repackaging used in downstream transport and
distribution (assigned to distribution market).
Recovery rates for each packaging type in
each market were sourced from a recent study
undertaken for Comvita's packaging, with
conservative assumptions applied where data was
not available. Very high uncertainty for this relatively
significant category.
S3C15
Investments
0.4%Investment-
specific
100%100%3.00
Equity share of Scope 1 and 2 emissions provided
by each entity. Uncertainty is medium-low and
adequate to the materiality of the category.
Biogenic Emissions and Removals
Biogenic CO
2
Removals:
C Sequestration
due to land use
change
n/aIPCC Tier 2100%n/a2.00
Data collected for area and planting year for each
Mānuka plantation zone, plus area and estimated
establishment year for wild forests on Comvita-
owned land. Medium-high uncertainty. No removals
calculated for Olive farms due to high uncertainty of
methodology.
Biogenic CO
2
Emissions:
Biofuel
Combustion
n/aFuel-based100%n/a1.00
Data collected as per Scope 1. Very low uncertainty
and materiality.
Optional Reporting
S3C6
Business Travel -
Hotel Stays
n/a 68%3.50
Data collected as per Business Travel. Uncertainty is
medium-low and adequate to the materiality of the
category.
S3C7
Employee
Commuting -
Working from
Home
n/a0%1.00
Data collected as per Employee Commuting.
Uncertainty is high but adequate to the materiality
of the category.
Distance-based 99%
Spend-based 1%
Distance-based 100%
GHG Protocol
Scope (S) /
Category (C)
% of Comvita’s total GHG emissionsGHG Protocol calculation method% of emissions by method for each sub-category% emissions based on data provided by suppliers/value chain partners
42
activity data certainty - calculated (4=high, 1=low)
43
Description of
methodology
and uncertainty
-data
42
Data provided by suppliers/value chain partners refers to supplier-
specific emissions, emission factors or distance data which is
specific to suppliers' activities.
43
Activity data certainty is based on a Certainty Score (1-4) for each
activity data used for calculations. Score 4 (high)= Measured e.g.
invoices, Score 3 (medium-high) = Calculated, Score 2 (medium-
low)=Literature, Score 1 (Low)=Estimate. The score is weighted by
emissions.
44
All transport emissions have been calculated on a
well-to-wheel basis.
34
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Included in NZ Facility
Included in Australia Facility
Included in Asia Facility
Included in EMEA Facility
Included in North America Facility
Included in Investments Facility
Comvita
New Zealand
(NZ)
Bee & Herbal
New Zealand Ltd.
Comvita
Landowner Share
Scheme Trustee Ltd.
Makino Station
Ltd. (50%)
Betta Bees
Research Ltd.
(6.06%)
Comvita USA, Inc.
(USA)
Comvita
Holdings HK Ltd.
(Hong Kong)
Comvita
Japan KK
(Japan)
Comvita China Ltd.
(HK JV -
CBEC entity)
Comvita Food
(Hainan) Co. Ltd
(Hainan - China)
Comvita Malaysia
Sdn Bhd
(Malaysia)
Comvita HK Ltd.
Comvita Limited
Comvita Holdings
UK Ltd.
(UK)
New Zealand
Natural Foods Ltd.
Comvita
Europe BV
(Netherlands)
Comvita
UK Ltd.
Apiter S.A. (32%)
(Uruguay)
Quemidur S.A.
(100% owned
by Apiter)
(Argentina)
Caravan Honey
Company (50%)
(USA)
Comvita IP
Pty Ltd.
(IP)
Olive Products
Australia Pty Ltd.
(Land)
Comvita Australia
Pty Ltd.
Medhoney
Pty Ltd.
Medhoney
(Europe) Ltd.
(UK)
Medibee
Apiaries
Pty Ltd. (50%)
Comvita Holdings
Pty Ltd.
(Australia)
APPENDIX 3
202420242024
CLIMATE STATEMENT /TE TAUĀKI ĀHUARANGI
Interest divested during FY24
Holding Co.
Non-trading
Comvita Korea
Co Ltd.
(Korea)
Comvita
Food (China) Ltd.
(China)
Comvita Singapore
Pte Limited
(Singapore)
Comvita
Share Scheme
Trustee Ltd.
35
COMVITA.CO.NZ
CLIMATE S TATEMENT
• Chapman Tripp (2024) Protecting New Zealand’s competitive advantage. A snapshot of global
sustainability reporting and trade trends: April 2024, prepared for the Aotearoa Circle, pages
28-30. Available from: https://www.theaotearoacircle.nz/reports-resources/protecting-new-
zealands-competitive-advantage
• Ehmer, S., Skaling, A., Tyrrell, W., and Welcher, C. (2024) Analyzing Beekeeping in Aotearoa New
Zealand; Changes in Climate, Calendars, and Culture, submitted to the Faculty of Worcester
Polytechnic Institute, page 19. Available from: https://digital.wpi.edu/pdfviewer/vt150p94q
• KPMG (2024) Insurance Update 2023. Available from: https://assets.kpmg.com/content/dam/
kpmg/nz/pdf/2023/11/insurance-update-2023.pdf
• Ministry for Environment (2021) A guide to local climate change risk assessments. Reference
ME 1595 - Appendix D: risk assessment template. Available from: https://environment.govt.nz/
publications/a-guide-to-local-climate-change-risk-assessments/
• MinterEllisonRuddWatts (2024) Litigation Forecast 2024 – Come hell or high water: A Climate
change litigation update. Available from: https://www.minterellison.co.nz/insights/come-hell-
or-high-water-a-climate-change-litigatio
• Neumann, P. & Straub, L. (2023) Beekeeping under climate change, Journal of Apicultural
Research, 62:5, 963-968, DOI: 10.1080/00218839.2023.2247115. Available from: https://www.
tandfonline.com/doi/pdf/10.1080/00218839.2023.2247115
• New Zealand Foreign Affairs & Trade (2024) The Green Dragon: Sustainability in the China
market – March 2024. Available from: https://www.mfat.govt.nz/en/trade/mfat-market-
reports/the-green-dragon-sustainability-in-the-china-market-march-2024
• NIWA (2024) Projected regional climate change hazards. Available from: https://niwa.co.nz/
climate-change-adaptation-toolbox/projected-regional-climate-change-hazards
• Queensland Government (2024) Queensland Future Climate Website – Regional Explorer
Dashboard. Available from: https://www.longpaddock.qld.gov.au/qld-future-climate/
regions/#responseTab1
• The Aotearoa Circle (2023) Agriculture Sector Climate Change Scenarios. Available https://
static1.squarespace.com/static/62439881aa935837b9ad6ac9/t/6453375932547f393aa97a
7d/1683175308226/April+2023_Aotearoa+Circle+Agri+Adaptation+Climate+Scenarios.pdf
• The Treasury New Zealand (2023) Assessing climate change and environmental impacts in the
CBAx tool, page 3. Available from: https://www.treasury.govt.nz/sites/default/files/2023-12/
cbax-tool-climate-environmental-impacts.pdf
• Tonkin & Taylor (2021) Western Bay of Plenty Flood Mapping – Model Build Report, prepared for
the Western Bay of Plenty District Council, page 61. Available from: https://www.westernbay.
govt.nz/repository/libraries/id:25p4fe6mo17q9stw0v5w/hierarchy/property-rates-building/
natural-hazards/flooding/2021-02-19%20-%20Rural%20Areas%20and%20Small%20
Settlements%20-%20Final%20Technical%20Report%20-%20Tonkin%20%26%20Taylor.pdf
• Transition Plan Taskforce (2023) Disclosure Framework. Available from: https://
transitiontaskforce.net/wp-content/uploads/2023/10/TPT_Disclosure-framework-2023.pdf
• World Business Council for Sustainable Development (2024) Climate Scenario Tool – Explore
the data. Available from: https://climatescenariocatalogue.org/explore-the-data/
———
The following published information was utilised in the development of Comvita’s Climate
Statement for FY24 as well as the standards and guidance referred to in Appendix 2, GHG
Inventory Basis of Preparation, Compliance with Standards.
References
APPENDIX 4
36
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CLIMATE S TATEMENT
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
COMVITA.CO.NZ
INDEPENDENT ASSURANCE REPORT
© 2024 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,
a private English company limited by guarantee. All rights reserved.
Document classification: KPMG Public
Independent Limited Assurance
Report to Comvita Limited
Conclusion
Our l imited assurance conclusion has been formed on the basis of the matters outlined in this report.
Based on our limited assurance engagement, which is not a reasonable assurance engagement or an audit,
nothing has come to our attention that would lead us to believe that the Scope 1, 2 and 3 Greenhouse Gas
(GHG) emissions and removals, comprising the GHG emissions and Comvita owned and/or managed carbon
and biofuel combustion removals and the explanatory notes included on pages 17 to 35 (Scope 1, 2 and 3
GHG emissions and r emovals) of the Climate Statement has not, in all material respects, been prepared in
accordance with The Greenhouse Gas Protocol’s Corporate Standards and guidance (collectively, the ‘GHG
Protocol’ as defined below) (the criteria) for t he period 1 July 2023 to 30 June 2024.
Information subject to assurance
We have performed an engagement to provide limited assurance in relation to Comvita’s Scope 1, 2 and 3 GHG
emissions and removals for the period 1 July 2023 to 30 June 2024.
Our assurance engagement does not extend to any other information included, or referred to, in the Climate
Statements, that is not in relation to Scope 1, 2 and 3 GHG emissions and removals included on pages 17 to 35,
as indicated in the footnotes included in the Climate Statement.
Additionally, our assurance engagement does not extend to the following, of which details may be referenced
within pages 17 to 35:
GHG Emissions Intensity;
The following GHG Removals:
oComvita NZUs from Comvita-owned land and forests;
oComvita's share of NZUs from forests under long-term land use agreements (estimated annual
accrual); and
oComvita enabled NZUs accrued to other landowners from Comvita plantings (estimated annual
accrual).
GHG Emission Targets;
Metrics and Targets;
Other Climate-related Metrics and Targets; or
the Emissions Trading Scheme (ETS).
We have not performed any procedures with respect to the information excluded from our engagement and,
therefore, no conclusion is expressed on it.
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Criteria
The criteria used as the basis of reporting include the World Resources Institute and World Business Council for
Sustainable Development’s Greenhouse Gas Protocol standards and guidance (collectively, the GHG Protocol):
‒ The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised edition)
‒ The Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard, 2011.
As a result, this report may not be suitable for another purpose.
Standards we followed
We conducted our limited assurance engagement in accordance with International Standard on Assurance
Engagements (New Zealand) 3410 Assurance Engagements on Greenhouse Gas Statements (ISAE (NZ) 3410)
issued by the New Zealand Auditing and Assurance Standards Board (Standard). We believe that the evidence
we have obtained is sufficient and appropriate to provide a basis for our conclusion. In accordance with the
Standard we have:
‒ assessed the suitability of the circumstances of Comvita Limited’s use of the criteria as the basis for
preparation of the Scope 1, 2 and 3 GHG emissions and removals;
‒ used our professional judgement to assess the risks of material misstatement and plan and perform the
engagement to obtain limited assurance that the Scope 1, 2 and 3 GHG emissions and removals are
free from material misstatement, whether due to fraud or error;
‒ considered relevant internal controls when designing our assurance procedures, however we do not
express a conclusion on the effectiveness of these controls;
‒ evaluated the appropriateness of reporting policies, quantification methods and models used in the
preparation of the Scope 1, 2 and 3 GHG emissions and removals and the reasonableness of estimates
made by Comvita Limited;
‒ evaluated the overall presentation of the Scope 1, 2 and 3 GHG emissions and removals; and
‒ ensured that the engagement team possess the appropriate knowledge, skills and professional
competencies.
Other matter
Certain information included for FY23 and FY22, was subject to a limited assurance engagement by another
practitioner whose reports dated 21 August 2023 and 24 August 2022 respectively, are available in Comvita
Limited’s published FY23 and FY22 GHG Inventory Reports and expressed an unmodified conclusion on such
information (details of which is included in the published FY23 and FY22 GHG Inventory Reports). Our
conclusion is not modified with respect to this matter.
How to interpret limited assurance and material misstatement
A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in
relation to both the risk assessment procedures, including an understanding of internal control, and the
procedures performed in response to the assessed risks.
The procedures we performed were based on our professional judgement and included enquiries, observation of
processes performed, inspection of documents, analytical procedures, evaluating the appropriateness of
quantification methods and reporting policies, and agreeing or reconciling with underlying records.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in
extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed.
2
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Misstatements, including omissions, within the Scope 1, 2 and 3 GHG emissions and removals, are considered
material if, individually or in the aggregate, they could be reasonably expected to influence the relevant decisions
of the intended users taken on the basis of the Scope 1, 2 and 3 GHG emissions and removals.
Inherent limitations
GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to
determine emission factors and the values needed to combine emissions of different gases.
Use of this assurance report
Our report is made solely for the Comvita Limited. Our assurance work has been undertaken so that we might
state to the Comvita Limited those matters we are required to state to them in the assurance report and for no
other purpose.
Our report is released to Comvita Limited on the basis that it shall not be copied, referred to or disclosed, in
whole or in part, without our prior written consent.
Our report should not be regarded as suitable to be used or relied on by anyone other than Comvita Limited
(Relying Parties) for any purpose or in any context. Any other party who obtains access to our report or a copy
thereof and chooses to rely on our report (or any part thereof) will do so at its own risk.
To the fullest extent permitted by law, none of KPMG, any entities directly or indirectly controlled by KPMG, or
any of their respective members or employees accept or assume any responsibility and deny all liability to
anyone other than Comvita Limited for our work, for this independent limited assurance report, and/or for the
conclusions we have reached.
Our opinion is not modified in respect of this matter.
Comvita Limited’s responsibility for the Scope 1,2 and 3 GHG emissions
and removals
The Management of Comvita Limited are responsible for the preparation of the Scope 1, 2 and 3 GHG emissions
and removals in accordance with the Criteria. This responsibility includes the design, implementation and
maintenance of such internal control as Management determine is relevant to enable the preparation of the
Scope 1, 2 and 3 GHG emissions and removals that is free from material misstatement whether due to fraud or
error.
Our responsibility
Our responsibility is to express a limited assurance conclusion to Comvita Limited on whether anything has come
to our attention that, in all material respects, the Scope 1, 2 and 3 GHG emissions and removals has not been
prepared in accordance with the Criteria for the period 1 July 2023 to 30 June 2024.
We used the work of a specialist in the Forestry industry to assist with determining the reasonableness of
Comvita Limited’s methodology assumptions and judgements for the calculation of Carbon Sequestration due to
land use change removals. We remain solely responsible for our assurance conclusion.
Our independence and quality management
We have complied with the independence and other ethical requirements of Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards Board, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.
The firm applies Professional and Ethical Standard 3 Quality Management for Firms that Perform Audits or
Reviews of Financial Statements, or Other Assurance or Related Services Engagements (PES 3), which requires
3
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the firm to design, implement and operate a system of quality control including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our firm has also provided financial audit services to Comvita Limited. Subject to certain restrictions, partners
and employees of our firm may also deal with Comvita Limited on normal terms within the ordinary course of
trading activities of the business of Comvita Limited. These matters have not impaired our independence as
assurance providers of Comvita Limited for this engagement. The firm has no other relationship with, or interest
in, Comvita Limited.
KPMG
Tauranga
28
th
August 2024
4
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CLIMATE S TATEMENT
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2024
COMVITA.CO.NZ
Moruki i ngā
wā Whanokē
CLIMATE S TATEMENT
COMVITA.CO.NZ
CLIMATE STATEMENT / TAUĀKI ĀHUARANGI
2024
---
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at June 2023
Results for announcement to the market
Name of issuer Comvita Limited
Reporting Period 12 months to 30 June 2024
Previous Reporting Period 12 months to 30 June 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$204,341 (13)%
Total Revenue $204,341 (13)%
Net profit/(loss) from
continuing operations
($77,388) (800)%
Total net profit/(loss) ($77,388) (800)%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay a dividend
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.06 $2.78
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to results announcement and attachments for
commentary.
Authority for this announcement
Name of person
authorised
to make this announcement
David Banfield, CEO
Contact person for this
announcement
David Banfield, CEO
Contact phone number +64 21 041 5630
Contact email address david.banfield@comvita.com
Date of release through MAP
29 August 2024
Audited financial statements accompany this announcement.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.