Comvita (CVT) AGM 2024 summary

Opening remarks and agenda

• The meeting opened with a welcome, acknowledgment of the company's 50th anniversary, and a focus 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.

• Formalities included quorum confirmation, proxies representing over 36% of shares, and presentation of annual financial statements.

Financial performance review

• FY24 revenue was $204.3M, down 12.7% from the previous year, with gross margin declining to 55%, a decrease of 450bps year-on-year.

• Reported EBITDA pre-impairment was -$4.5M; underlying EBITDA was $10.3M, both significantly lower than prior year.

• Reported NPAT was -$77.4M, with a $64.2M non-cash impairment and net debt rising to $79.7M.

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

• Banking syndicate waived Q1 FY25 covenants; ongoing discussions to revise covenant structure, with risk of breach if not resolved by December 2024.

Board and executive committee updates

• Bridget Coates was appointed as Chair, with Brett Hewlett stepping in as CEO and Luke Bunt/Lucas Bunt joining 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.