16 Nov 2011

Comvita expects stronger second half, as usual

7:41 am on 16 November 2011

Takeover target Comvita has reiterated its profit forecast for the full year, saying it expects to continue growing in Asia.

The listed honey medical provider made a half year profit of $2.2 million, compared with a loss the same period last year.

Sales rose 14% to $41.8 million, and excluding one-off items, its normalised profit rose to $2.6 million, compared with $392,000.

Coffee and food giant Cerebos is offering $2.50 a share for Comvita, a bid the company has rejected outright and urged shareholders not to sell.

Its chairman Neil Craig says the company's half year result backs up that advice.

Comvita's second half was expected to follow the normal pattern of being "significantly" stronger than the first half, he says.

The company's distribution structure also allowed it to continue to add profit at a greater rate than sales.

Comvita is performing well in Asia, where it has 54 stores, and chief executive Brett Hewlett says the company will continue growing there.

Regarding the takeover offer, the target company statement and independent report are due to be released to the market next Tuesday.