Comvita

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Accounting Report- Jessica Miller Prepare a report for an external user that interprets the annual report of a New Zealand reporting entity. 91407 By: J. Miller To: Lydia Paper: Accounting 91407, Annual report review Executive summary This report is prepared for Lydia who is considering purchasing shares in Comvita. The report aims to provide analysis of Comvita’s annual report and the viability of investing in stocks in the company to maximise the returns on their investment in Comvita. Comvita is an international natural health and beauty products company with a strong New Zealand heritage. They are committed to the development of innovative…show more content…
One of the main reasons for my recommendations would be the potential that Comvita’s medical segment has to take off. Although it only has a small contribution of 3.469 million now there is potential for this to become much larger. Starting with Derma Sciences finding new uses for their honey and Comvita, selling their products to professional and hospital markets for their special wound dressings. This will greatly increase the amount of sales for Comvita, which will in return generate a greater net profit for the business. This means that other financial elements in the business will also increase which is return will be a positive for potential shareholders. Along with this there is also the new olive tree expansion in Australia the largest of its kind in the world, this new facility increases productivity by 50% increasing the number of olive leaf based health products out there. Therefore this new facility shows that more products are going to be able to be produced more efficiently which in return will mean more sales for Comvita. Overall these reasons give me more than enough evidence to predict an increase in the medical segment of Comvita in the future years. Another reason is the strong dividend yield that Comvita has. Comvita’s yield compares well to that of Port of Tauranga who has been on the share market for a long time and is very profitable. This shows that Comvita is a worthwhile investment as dividend yield

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