Comvita (CVT) AGM 2024 summary

Opening remarks and agenda

• The meeting opened with a welcome, acknowledgment of the company's 50th anniversary, and an overview of the agenda focused on agility in turbulent times and global market status.

• The meeting was conducted both in-person and online, with instructions for participation and voting provided.

• A quorum was confirmed, and proxies representing over 36% of shares were noted.

Financial performance review

• Sales are tracking at similar levels to last year, but margins remain under significant pressure due to competitive forces.

• Last year's revenue was impacted by a macroeconomic downturn in China and changes in consumer preferences, with EBITDA falling NZD 26.1 million versus PCP and NPAT also significantly down.

• Impairment charges were taken on assets whose value was no longer justified, and inventory levels remained high, impacting net debt.

• Ongoing discussions with banks regarding covenant structures for FY25, with potential for covenant breach if not resolved by December 2024.

• Cost and debt reduction initiatives are underway, focusing on inventory management and positive operating cash flow.

Board and executive committee updates

• Bridget Coates was appointed as Chair, with Brett Hewlett stepping in as CEO and Luke Bunt rejoining the board.

• The board is described as small, experienced, and effective, with representation from major shareholders and expertise in audit, safety, and performance.

• Leadership team introductions highlighted key roles in APAC, North America, supply chain, digital, and transformation.