Good afternoon, and thank you for joining us today here at the Pāpāmoa Surf Club. Beautiful day again, as we have had in previous years, and also shareholders online. I am Bridget Coates, chair of the Comvita board. I would like to invite Nikki Reedy, Comvita's customer experience manager, to come forward and open our meeting with a karakia. Nikki, thank you. I would like to welcome you all to the 2026 annual shareholders' meeting for Comvita. Before we start, some housekeeping, please. For those in the room, can I please ask you to put your phone on silent? If a fire alarm should go off, main fire exits are marked with the green running man symbol to the left and right. Please exit and convene in the grass area out in front of the venue. Please follow other instructions from the team if that should happen.
Comvita's directors include Mike Sang, chair of our audit and risk committee; Bob Major, chair of our safety and performance committee; Gregor Barclay, Michael Chye, Peter Nathan, who is not able to join us today, and Julia Xu. I am joined in person by my colleagues who you can see on the stage here, and by members of the senior leadership team, including our Chief Executive, Karl Gradon, Mandy Tomkins-Dancey up the front here, and other members of our leadership team in the audience. As I say, Peter Nathan has provided his apologies for this meeting. I would also like to welcome Glenn Keaney from KPMG. Thank you, Glenn. And Andrew Matthews from Simpson Grierson, who is Comvita's legal advisor, both here today, and also the team from the share registry, MUFG Pension & Market Services.
MUFG will help conduct the voting on the formal business later in the meeting and act as scrutineer. Today's meeting is being held both in person and online through MUFG's online meeting platform. The chair and CEO's addresses and the slides have been posted on the NZX and also on comvita.co.nz under the investor section prior to this meeting. For those of you attending the meeting virtually, if you would like to submit a question, the Q&A is open during the course of the meeting, so please feel free to submit questions throughout the meeting, and these will be addressed in the Q&A section. Click on the Ask a Question box at either the top or the bottom of the webpage and enter your shareholder or proxyholder number to validate yourself. Type your question and click Submit.
I would encourage you to submit your questions as early as possible in the meeting. If we receive multiple questions on any topic, these will be amalgamated together, and any questions not answered in time may receive an email response after the meeting. Voting today will be conducted by way of a poll. If you are eligible to vote at this meeting and you are joining us online, you can vote at any time during the meeting by clicking Get a Voting Card and entering your shareholder or proxyholder number. After completing your selection, click Submit Vote at the bottom of the electronic voting card. You can change your vote up until the time the voting closes. More information on how to vote online is contained in the virtual meeting guide, which is available on the platform. Or alternatively, you can call the helpline on 0800 200 220.
If you are an eligible shareholder or proxyholder attending in person, you should have received a voting card when you registered. When it is time to vote, please click the relevant box to indicate whether you are voting for, against, or abstaining from the resolution. If you do not have a voting card and are eligible to vote or have any questions, please make your way to the registration desk, which is just outside the room. The Company Secretary has confirmed to me that the notice of meeting has been sent to shareholders and all other persons are entitled to receive it. The financial statements for the year end of June 30, 2026, and the auditor's report for the period are available under the investor center on our website.
Our annual report, including our financial statements, were made available on our website on 28th of August, on the same date as we announced our annual results. Hard copies are available either through MUFG Pension & Market Services or by contacting our customer experience team on 0800 504 959. I have been told that we have a quorum, and given that the time is now past 2:00 P.M., I now declare this annual shareholders' meeting open. Proxies have been appointed for the purposes of this meeting in respect of approximately 91.8 million shares, representing over 70% of the total number of shares. Now to the agenda for today's meeting. My address this afternoon will focus on the commitments we made to you a year ago, the progress that we have delivered against them, and the priorities for our next phase.
I will then hand over to our Chief Executive, Karl Gradon, who will provide an update on the market environment, our strategic priorities, and the progress we are making, and the financial outlook for the company. Questions relating to these presentations can be asked during general business at the end of the meeting. We will then conduct the formal business of the meeting, discussion of the annual report and financial statements, consideration of the ordinary resolutions relating to remuneration of the company's auditors, director elections, removals, and remuneration, before finishing with general business. For each of these items of formal business, there will be an opportunity for shareholders to ask questions. We would ask that you hold your questions until they are called for under the relevant item of business. A year ago, Comvita was at a critical point. We faced balance sheet profitability and organizational challenges.
Our lenders were providing short-term support but had made it very clear that a lasting solution was required with urgency through debt repayment or a potential strategic transaction. We also faced low confidence from investors, including major shareholders who had signaled their intention to exit, and significant gaps in our management team. Our priorities at that time a year ago were very clear. Strengthen the balance sheet, secure long-term bank funding, restore profitability and cash generation, reduce inventory, strengthen leadership, and put the company on a more sustainable footing. Those were the commitments we made to you as shareholders, and we are all pleased to be held accountable for meeting those commitments. While there is certainly more to do, the results demonstrate substantial progress against each one of those priorities, and the business is in a materially stronger position than it was one year ago.
Let me take you briefly through the progress that we have made. Firstly, we have materially strengthened the balance sheet. In May this year, we completed a NZD 40.5 million recapitalization comprising a NZD 30 million entitlement offer and a NZD 10 million placement. Importantly, the capital raise was structured to provide certainty and participation for all eligible shareholders while minimizing economic dilution for those who did not choose to participate. We delivered a much more balanced outcome in terms of protecting all shareholders than some had anticipated that we would be able to do in meeting those objectives. We also refinanced our bank facilities through to September 2028. Combined with much stronger cash generation and strengthened working capital management, this saw our net debt reduce from NZD 62.4 million at the end of FY 2025 to a net cash position of NZD 0.5 million at the end of FY 2026.
We have substantially reduced inventory from NZD 135 million at the end of FY 2024 to NZD 79.9 million at the end of FY 2026. Together, these actions have given Comvita a much stronger financial foundation on which to build. That is the balance sheet. Secondly, we restored profitability and cash generation. NPAT returned to a profit of NZD 7.7 million compared to a loss of NZD 104.8 million in the prior year, and the business generated NZD 30.3 million of positive free cash flow. Revenue grew 10.7%, but gross profit grew 38.8%, and we took NZD 12.2 million out of operating expenses at the same time. Operating cash flow increased to NZD 40.3 million, supported by lower inventory, but more importantly, significantly stronger trading performance. These results represent a significant financial reset. We now have a much stronger financial base from which to improve the quality and consistency of performance and from which to drive profitable growth.
We have also strengthened financial and operating disciplines, including much more rigorous capital allocation, inventory management, and cost control. Thirdly, we restructured our share register. The recapitalization brought important changes to our share register. We welcomed three new major shareholders, each with an ambitious long-term perspective on Comvita, including Fraser & Neave as a strategic shareholder. F&N brings substantial consumer, market, and operational experience across Southeast Asia, a region where we see considerable opportunities for Comvita going forward. This relationship has the potential to bring value well beyond the capital that has been invested. Our teams are already working together to explore opportunities across supply chain, manufacturing, distribution, digital pilots, science, and packaging, to name a few. Finally, we have brought together an experienced leadership team, which is fully prepared for future growth.
Under our CEO, Karl Gradon, we now have an experienced leadership team in place across our key commercial, operational, financial, marketing, science, and people functions with the energy and commitment to grow our company. We are instituting greater strategic discipline and clearer accountability for our new team as we move from stabilizing the business to delivering a significant improvement in performance. In summary, the progress we made in FY 2026 gives us a much stronger foundation, but it is the foundation, not the destination. We recognize that too little of our considerable success in market is translating into shareholder returns, and that the progress achieved within the business has not yet been substantively reflected in the experience of our shareholders. Closing that gap between our revenue performance and our net profit line is a high priority for the board and for our management team.
The board's expectations for this next phase are clear. Firstly, focus. We need to make very strategic and deliberate choices about our markets, channels, products, and opportunities where Comvita can create the greatest value and direct our resources accordingly. Business models and channel strategies that served us in the past are no longer necessarily the right ones in a fast-changing global environment. Resources need to be reviewed and reallocated in real time to achieve the greatest return for our shareholders. This also means continuing to simplify the business, improve our productivity and our cost efficiency, strengthen the management of inventory and capital, and ensure that revenue growth drives superior earnings and cash generation. Secondly, execution. We need to ensure greater commercial rigor, tighter accountabilities, and a single-minded delivery against the priorities and commitment that the board have set. Third, capability.
We need to support and empower our leadership, our organization, and our governance and ensure we have the capability on our team to execute those choices effectively. Rebuilding shareholder confidence and total shareholder returns remains the important key measure of our success. That will require sustained improvement in performance, earnings, and cash generation, not just for one year, but consistently over time. We are committed to transparent reporting and to delivering superior outcomes and returns, and thereby earning your support over the long term. Ultimately, the next phase is about converting the stronger foundations that we have built into much improved performance, rebuilding shareholder confidence, and creating long-term shareholder value. Thank you for your persistence and patience to date. Board capability for the next phase. The next phase also requires the right capability and experience around the board table.
Following the recapitalization, the composition of the board has continued to evolve. The recent appointments of Michael Chye, Julia Xu, and Peter Nathan have further strengthened our FMCG capability and enhanced our operational and consumer experience in our target offshore markets. Today is the first opportunity since the recapitalization in May for shareholders to determine the composition of your board, and a number of resolutions later in this meeting will give you that opportunity. I encourage all shareholders who have not already done so to exercise their vote accordingly. In closing, Comvita is operating in FY 2027 from a materially stronger position than it did a year ago. Your board made clear commitments to you as shareholders at that time, which have been delivered in full. We are now translating those improved foundations into stronger performance and into significant increases in shareholder value.
Karl Gradon will now take you through the market environment, our strategic priorities, and the progress that management is making in putting these priorities into action. Thank you. Karl.
Thank you very much, Bridget, and welcome to everyone to today's forum. As Bridget has outlined, FY 2026 was about stabilizing the business and restoring stronger financial and organizational foundations, and the team can be very proud of what we have achieved. Now it is a time to compete hard and win, growing in markets where Comvita can lead, running a leaner and sharper business, and turning both into real value for shareholders as we go. We have an operating model challenge to solve. We need to be able to ensure profits can withstand every phase of the market cycle. We are driving a significant change agenda across Comvita to make this happen. You will rightly judge us on results and returns, and ultimately, that is how our performance should be measured.
I will cover three areas today: the market and category environment in which we are operating, the choices we are making in response to these, and the actions underway to build a more focused, efficient, and profitable Comvita. An important part of preparing Comvita for the next phase has been strengthening our leadership capability. We have now got a team of experienced leaders in place across key commercial, operational, financial, marketing, science, and people functions with a much clearer ownership of delivery. As a leadership team, we are aligned across a deliberately focused strategy and a simpler way of working across the business. This means operating as one Comvita with clear priorities, our global capabilities working together, faster decisions, and a clear focus on delivering results.
This team is built to win with the right skills and the right backgrounds and deep experience in some of the New Zealand and the world's leading consumer businesses. Many of them have joined in the last year, and I would like to thank them for the energy and pace that they have brought to Comvita. As I look and turn to the external environment, the Mānuka honey category is continuing to change across demand, competition, and supply. First, demand is broadening. North America is now the largest Mānuka honey market, and growth beyond China is creating a more diversified base of category demand. This is positive for the long-term development of the category, but the dynamics differ materially by market. North America offers significant opportunity, while China remains important but is operating in a more challenging consumer and channel environment. Secondly, our competition is intensifying.
Much of the recent volume growth in the category has been concentrated in the lower grades, while increasing price transparency and digital competition are contributing to greater commoditization. We are therefore competing not only with other Mānuka honey producers, but for consumer attention and spending across the wider health and wellness category. Thirdly, supply is tightening. Industry hive numbers and inventory levels have reduced, making reliable access to high-quality Mānuka honey increasingly strategically important. This is a marked change from the oversupply of recent years. Comvita enters this environment from a stronger position. We have normalized our own inventory levels and established a stronger and more strategic approach to procurement, production, and supply planning. Together, these changes reinforce the need for sharper market choices, stronger brand and product differentiation, and the strategic allocation of our honey supply.
That changing environment is shaping where we will compete to win and where we will direct our resources. These category dynamics are not uniform. Conditions vary considerably by market, channel, and product, and these further highlight our focus on responding with greater precision in where and how to invest. We are not applying one global formula. In North America, category momentum is strong, and consumer penetration remains relatively low. At the same time, e-commerce competition is intense, and the business has historically had exposure to individual customers and channels. Our focus is therefore on broadening our distribution, building consumer awareness, and developing a more diversified customer and channel base. Using proprietary science-based claims that set us apart from other brands, we will play an increasingly important role. In China, consumer demand is softer, consumers are increasingly value conscious, and parts of the category are becoming more commoditized.
Importantly, Comvita remains number one in Mānuka in China, with more than 50% market share. Our focus is on defending our premium leadership, improving our channel mix, and innovating in premium grades, formats, and propositions that meet evolving consumer needs. We must look hard at our routes to market and adapt to evolving consumer needs as they happen. Across Asia and our other markets, conditions are uneven, but there continue to be attractive premium wellness opportunities. Here, our focus is on prioritizing the markets with the strongest potential and strengthening our effectiveness of our partners and improving our channel economics. We saw that work pay off last year in Singapore and Korea, where we optimized our retail network, grew digital sales, and expanded into other channels like travel retail. In the Middle East, we formed a new strategic partnership with one of Saudi Arabia's leading pharmacy retailers.
The common test across all markets is that investment must create value. We will invest hard where Comvita has a genuine opportunity to unlock credible, profitable growth, and in doing so, build a broader and more resilient earnings base. Equally, we should look to exit channels where we do not see sufficient value. While considering the external environment is demanding, Comvita is now in a position of strength. Comvita has a combination of assets and capabilities that can be leveraged for competitive advantage and are difficult to replicate, and a premium position brand that can sustain any potential increase in raw material pricing better than most. We have a trusted global brand, premium New Zealand provenance, and established leadership in the Mānuka category. We have deep science, intellectual property, and research capability, giving us the ability to strengthen our differentiation and extend Mānuka into benefits and formats not yet seen.
We have an integrated supply chain extending from forests to hives, through to premium finished goods. This supports quality, traceability, and reliable access to premium honey. We have a well-established market capability across China, North America, and Asia, with direct retail, digital, and partner-led routes to consumers. Individually, these are significant strengths. Our opportunity is to bring them together with real focus and intent and turn them into growth and profit. That brings me to the four priorities driving our work across the business. The first is winning in priority markets and channels. We are sharpening our priorities across markets, channels, and customers, and directing resources towards the opportunities capable of creating the greatest value. As I have outlined, this does not mean pursuing growth everywhere. It means matching our investment and approach to the role, opportunity, and economics of each market.
The second is strengthening our brand and innovation. We are making Comvita's premium differentiator stronger and clearer in every market. Our innovation will be increasingly consumer-led, science-backed, and focused on the needs of our priority markets and channels. This includes making better use of our science and intellectual property and becoming more effective at taking successful propositions across multiple markets. The way consumers shop is also changing fast, with AI agents now searching, comparing, and buying on consumers' behalf. We are prioritizing agentic commerce so that Comvita is the Mānuka brand those assistants and agents choose. Comvita is well-placed to capitalize on the shift. AI agents look for trusted, verifiable information, and our UMF certification, accredited laboratory testing, and traceability from hive to shelf give us a genuine competitive advantage over competitors in this environment.
We are the only ones in the entire sector that can lay claim to all these attributes that AI will assess. The third is simplifying how we operate. Our current operating model has not delivered the outcomes we want, so we are changing it. We will need to be bold in our decisions to drive the outcomes we need. Tweaks will not be enough. We are stripping out complexity and duplication across processes, systems, and our cost base to lift our productivity and support faster but better decisions. This is not simply about cutting costs. It is about building a leaner, more scalable Comvita with clearer accountabilities and stronger execution. The fourth is optimizing capital and supply. We are applying more rigorous return thresholds to investment and aligning honey procurement, production, and inventory decisions more closely with forecast demand and our risk profile.
The progress made in reducing inventory and restoring balance sheet strength is now embedded in how we manage the business rather than a one-off reset. We cannot control every external condition, but we are not waiting for conditions to improve. We are getting on with the work, and each of these priorities is about one thing: growing Comvita profitably and increasing shareholder value. Let me give you a few examples of what work looks like on the ground. We would like to share more, but we operate in a highly competitive industry, and some of our more important work needs to stay confidential until it is in the market. One example is Lepteridine. This is proprietary Comvita gut health science claim that sets us apart from all of our competitors.
We are now working on how we can use it to create differentiated consumer propositions around Mānuka honey, and have already shown that this resonates very well with our North American consumers. No other Mānuka brand has the proprietary science-based supports gut health claim in the largest Mānuka honey market in the world, the U.S.A. We are now taking these learnings and rolling them out around the world. It is a good example of taking a scientific asset that we have created internally and turning it into commercial value. We are also looking at emerging global health trends, including the rapid growth of GLP-1 medicines and the increased focus they are creating around gut and metabolic health. These are areas where our science and natural health products may have a relevant role to play. Another is inventory. We ended the FY 2025 year with NZD 89 million of inventory.
We closed our FY 2026 year with NZD 79.9 million. That is real cash that was sitting in our warehouse. Inventory days on hand are now back within our target range, with better alignment between the honey we buy, what we manufacture, and what our customers and consumers need. That may not sound very exciting, but over the past few years, I can assure you, we get quite excited about having the right amount of honey in the right place at the right time. We are starting to see some exciting opportunities emerge from the relationship we have with F&N. Our teams are already working together on practical opportunities across areas such as distribution and innovation. It is still early days, but there is real potential in what two organizations can do together, and there is a clear positive intent to deliver mutually beneficial outcomes.
We are also very proud of the progress we have made in staff engagement this year. Our Net Promoter Score improved from - 1.1 in FY 2025 to a + 0.9 in FY 2026. That is significant and encouraging progress, although I know there is much more to do. We are also investing in our people and building capability for the future, including reintroducing beekeeping and other apprenticeship opportunities that give our people the chance to develop skills and build careers within Comvita. Finally, there are products like the one we are about to share with you. Our 100% Mānuka Lozenges have been one of our most successful new products. They are a simple example of taking something that Comvita is very good at, Mānuka honey, and putting it into a format that is convenient and relevant for consumers. Rather than talk about them, we are going to pass some around the room.
Apologies for those of you that are online. You can go find them on comvita.com. Feel free to share their goodness with the world. I personally love this product, by the way. We have a Pure Mānuka Honey and a Blackcurrant Lozenge for you to try today. Please do try one. With some formal business still ahead of us this afternoon, they should help you keep going through the next part of the meeting. These are just a few examples. There is much more to come with new products, partnerships, and market opportunities in development, and we look forward to sharing more when we are able. I will finish with an outlook. We are three months into FY 2027. After the first quarter, trading is in line with our internal targets. We are in a strong financial position.
Group sales for the first quarter are up on the prior year, and excluding foreign exchange impacts, profitability is in line with the prior year. This is being achieved while we progress a significant program of change across the business. Premium pricing, tight cost control, and foreign exchange tailwinds are all helping to offset pressure on honey pricing. We are looking to provide FY 2027 guidance ahead of, or with, our half-year results announcement in February, and I want to be clear about why we are not providing it sooner. Shareholders have told us plainly that this business needs to change materially. We agree. As already mentioned, over the coming months, we are making significant decisions on our markets, our channels, and our operating model, decisions that will reshape Comvita’s earnings. It is right that our guidance reflects those decisions rather than comes ahead of them.
By the half year, we will also have much clearer visibility on the external forces that influence earnings, including conditions in our key markets, foreign exchange, geopolitical developments, and the Mānuka honey season. We are watching these closely, and our balance sheet gives us the flexibility to respond as conditions evolve. On dividends, our position follows directly from our strategy. We raised capital to reset the balance sheet and fund the changes that will rebuild earnings, and that is what we are using it for. At this stage, we do not expect to pay a dividend in respect of 2027. Dividends will return when earnings, cash generation, and the balance sheet support a sustainable dividend, and the emphasis from me is on sustainable. Our ambition for this business is big, and we are moving at pace to deliver it.
We will take the quick wins as they come, but our real focus is long-term sustainable growth, and that will take time to translate into shareholder returns. Ultimately, our job is to turn this work into stronger financial performance, and that is what my team and I are accountable for. We have already changed our ways of working significantly over the past year. We are pursuing continued improvements with rigor and urgency, and I look forward to updating you on our progress as we evolve and reset our operating model. On that note, I will now hand back to Bridget to move into the formal parts of the business of the meeting. Thank you, Bridget.
Thank you. Thanks, Karl. I would now like to turn to the formal part of the meeting and the resolutions. At each item of business, I will call for questions relating to that item. We are committed to providing all shareholders with a reasonable opportunity to ask questions and to express their point of view. In the interests of all participants, please keep questions concise and relevant to the business being considered, and ensure that comments remain respectful and dedicated to the matters under consideration rather than focusing on individuals. There will be time for further and broader Q&A as part of general business. We will respond to questions in the room before turning to questions from online participants. For those of you in the room, please hold up your voting or non-voting investor card and wait for a microphone, which will come from the back.
Before asking your question, please state your name and advise whether you are a shareholder or a proxyholder. For shareholders or proxyholders joining online, please click the Ask My Question button at the top or the bottom of the webpage. I will now open the floor for any questions relating to annual reports, financial statements, and other reports. Are there any questions from those in the room? Are there any questions from those online?
No.
No. Thank you. If no questions online, we will move on. Are there any further questions? Thank you. We now move on to the ordinary resolutions. We have 10 resolutions for you to consider today. Resolution one relates to the appointment and remuneration of KPMG as Comvita's auditors. Resolutions two to six are for the election of Directors Michael Sang, Michael Chye, Peter Nathan, Julia Xu, and Kosit Suksingha. Resolution seven to nine are for the removal of existing Directors Robert Major, Gregor Barclay, and me, Bridget Coates. Resolution 10 is for an increase in the directors' remuneration. Given the large number of resolutions, we recommend that shareholders read all of the resolutions carefully to make sure that they are clear on what they are voting for and what they are voting against. It's a little more complicated than normal.
In terms of the voting procedure for the 10 resolutions, please mark your voting paper with For or Against. If you wish to abstain from voting on the scheme resolution in front of you, please mark your voting paper Abstain. Online attendees should submit their electronic voting card, which they received when online registration was validated. If you are eligible to vote and have not yet validated, click Get a Voting Card and enter your shareholder or proxyholder number. After completing your selection, click Submit Vote at the bottom of the electronic voting card. If you require any assistance, please call the helpline. As mentioned, we will call for questions in relation to each of these resolutions.
In relation to resolutions two to six for the re-election or election of directors, each of the relevant nominees will be given up to a maximum of three minutes to speak before the Q&A session for that resolution. There will be Q&As after the finish of the candidate speaks, and then we will vote accordingly. Note, Peter Nathan is currently overseas with a prior commitment and is not able to attend, but we will be playing a prerecorded message from him and there will be no question and answer relating to this resolution. We will also play a prerecorded message from Kosit Suksingha, who is not here in person but is available online to answer questions. We will take questions with regard to Kosit if there are any questions from you.
In relation to Resolutions seven to nine, which are shareholder proposals for the removal of certain directors. A spokesperson for the relevant shareholder or shareholders making the proposal will have the opportunity to speak to their resolution for up to three minutes, and then the relevant director will have up to three minutes to respond before we move on to Q&A for that particular resolution. Mike Sang, an independent Director and current Chair of our Audit and Risk Committee, will manage the proceedings for resolution nine, which relates to the shareholder proposal for my removal. We will now move through each of these resolutions.
I will now put the first resolution to shareholders, being the resolution that the meeting records the reappointment of KPMG as the auditors of the company for the current financial year ending 30th of June, 2027, pursuant to Section 207T of the Companies Act 1993, and that the board be authorized to fix KPMG's remuneration. Are there any questions in relation to this resolution from the floor? Are there any questions online?
None online.
Thank you. There are no questions online. Please cast your vote on resolution one, KPMG. Resolution two. I will now put the second resolution to shareholders, being the resolution that Mr. Michael Sang, who retires by rotation and is eligible for re-election, be re-elected as a director of the company. I will now ask Mike Sang to speak in relation to his nomination. Thanks, Mike.
[Non-English content] Well, thanks very much for the opportunity to put my name forward. Comvita is a really cool company, and that the people that are working for it have a real passion for
Loudspeaker please. Mike.
Sorry.
It's online as well, yeah.
[Non-English content] Look, I'd just like to say thanks for the opportunity to put my name forward for this position. I think Comvita is a really great company. It's full of people with a massive passion, both for the industry and Comvita itself, and it's a company that appeals to me personally for its connection to Aotearoa, New Zealand, and also, in many ways, to our rural economy, which I've had a lot of background in. Those that know me know my background is in a variety of industries, but inevitably it's been kind of working on building and improving businesses through many of the challenges and many of the things that Karl's talked about today, as well as M&A activity and other type things.
I've worked both as a CFO and CEO, and I think my experience is very relevant to what we want to do with Comvita. That honestly, from a heart level, I'm really attached to the company, and I think its history and its people are fantastic. Both from an emotive and professional perspective, I'd like to put myself forward for your consideration, and thanks very much for listening to me for a few minutes [Non-English content]
Thank you, Mike. Are there any questions in relation to this resolution from the floor? Are there any questions relating to this resolution from online?
There is. How will your re-election, Mike, drive long-term shareholder value?
I think Karl has made a few comments that reflect my way of thinking. I firmly believe that there's very rarely a silver bullet in any type of situation, and that building a company for the long term is about getting your basics right. You need to have a motivated and engaged workforce. You need to understand your comparative advantages and how to turn them into competitive advantage. You need a ruthlessness on simplicity and efficiency. You need a drive. You need to link your reward structures with actual achievements that actually add shareholder value. You need to do it day in, day out, month in, month out, on and on, and never take it for granted. I've got no simple answers for you other than the belief that it's about getting the basics right, understand yourself, and invest where you've got competitive advantage over your competitors.
Thank you, Mike. Are there any further questions online? Yes. Do you have a question? Just state your name and who you're sharing with.
My name's Chris Brown, proxy vote for the NZSA, Shareholders' Association.
Thank you.
My question around Michael, with regards to your skill matrix. The board's identified, Karl spoke of weaknesses in the current leadership team, and I assume that was also regarding the skill matrix of the current Directors. Where do you feel you fill the gaps?
Look, obviously, Chair of Audit and Risk, that's clearly the one. But my experience is both as a CFO and a CEO, so I think I bring an understanding of the challenge of the executive team as they work through the type of challenges in the businesses we're trying to build. Many of the things Karl's talked about I've got experience of, both as a Director and an executive. I think that affinity with what we're trying to achieve in my own personal experience is just important generally. But in terms of the specific skills then, I've obviously got agricultural experience from my previous experience. I've run IT and whatnot before as a CFO. I've obviously got extensive M&A experience, understand about the investment and the capital returns and the risks and that type of stuff, and how to think about those things.
It is both from a technical, from a finance investment and M&A type activity, but also just from the personal experience of some of the challenges and things that we need to progress to be successful.
Cool.
You guys realize I am a bit of an introvert, right? Answering all these questions is unnerving me.
Michael, you have not mentioned the word governance in your small speech. Can you tell us, please, a little bit about your experience in governance and where you sit on the continuum, you think?
Mm-hmm. Look, obviously, an executive, you have been working with governance for decades. I think probably the two points I will make about my own experience as Chief Executive of Ngāi Tahu Holdings, we ran a governance structure for all our investments and all our boards. As the Group Chief Executive, I was responsible for the selection of all our directors to all our boards, and monitoring their performance, and working with those directors to ensure they align with what the shareholder expectations were. I have got a lot of experience from that side of it. During that time, I was also on various boards. Inevitably, to be honest, the Ngāi Tahu Holdings board only would put me on where there was trouble.
In my seven years with Ngāi Tahu, I was dealing with the trouble situations, the challenges we had, where we were doing strategic resets, or where we were just under extensive financial pressure. A lot of experience dealing with the hard stuff through that period. Since then, I have had six, seven years on various boards, generally with that kind of M&A investment return shareholder connection hat. That has been a strength of mine. When it comes to governance, I very much believe that there is not a one-size-fits-all, and you have got to adjust it for the situation you are in. I very much believe that you have got to have trust and confidence in your executive team, but at the same time, you have got to also be able to verify that belief in there, and that the trust and confidence is something that is earned and built over regular interactions over time.
I strongly believe in building a boardroom culture that there is room for dissension, there is room for discussion and debate. To do that, you have got to build the confidence in your executive team to actually disagree with directors and be able to put their things forward. For me, good governance ultimately comes around to having the right people in the room with mutual respect, with an ability to debate, to disagree. But when you reach consensus and make a decision, then you need the unity to everyone to fall in line with that decision because otherwise, you are pulling different ways. It is a long-winded answer, but I hope it answers some of your questions around.
There is another question. Please, go on.
Graham Edwards. Mike, that is a nice story. Where were all those skills the last few years when Comvita had the troubles?
Well, if you're going to push the boat around, I'm happy to ask. Some of the issues, I've been here for three years now. Certainly, the situation that I found the company to be in was different than what I had thought it was when I joined. The unraveling of some of the issues was the work of a lot of people, including the likes of Bob, and Bridget, Brett, and others. When the situation we were in, where Comvita had essentially been on a path of growth at the same time the market softened and the price of honey fell, it's just a tricky situation. So, in my view, and I'm happy to stand beside it, we worked through that as well as we thought we could at the time. When I sit here in hindsight, would I do everything the same? No, you never do.
The company was under extensive financial pressure. It wasn't a situation that was created by the directors on the board that were addressing a lot of the challenges. We're here today, still in existence, and still got an opportunity again to move forward. So, I could answer this two ways. I regret some of the way we did things. I think you always learn from prior experience. You always wonder about your decisions when you're under pressure. But ultimately, it was a tough situation, and we got through it. So, I'm happy with that.
It needs to be in relation to the resolution. In relation to the resolution.
Yeah.
Quick question. When you were a part of Ngāi Tahu, how did you deal with the Dennis Watson fiasco?
We had a fiasco.
That was the Southland.
Yeah. Look, I don't know if people followed Ngāi Tahu's time. We had a pretty good decade over that period. We exceeded all our financial benchmarks and financial measures. The iwi's a very demanding owner. It has a lot of metrics, matrices, expectations that you need to be met in its portfolio, and the long story short is we got most of our investments right and that one wrong. It was a combination of partner issues. But also, it was a result of the industry just got a glut of honey. It got significant pressure on it at the same time as we had an unstable partner, and when you put external pressure in with internal pressure, we had a situation that was phenomenally difficult to manage. Ultimately, we managed to work our way through it.
But from an investment perspective, I would say in my 20 or 30 years, that's the only one I truly regret.
Even with the result.
Yeah. But we also made NZD 1 billion over the time I was there, so.
Thank you.
Come on.
Thanks very much. Are there any further questions online? Could I ask you now to cast your vote on resolution two? I will now put the third resolution to shareholders, being the resolution that Mr. Michael Chye, who was appointed by the board as a Director to fill a casual vacancy with effect from 22nd of June 2026, be elected as a Director of the company. I will now ask Michael Chye to speak in favor of his nomination. Thank you.
Thank you, Bridget. Good afternoon, fellow Directors and shareholders. For those who I have not had the opportunity to meet, my name is Michael Chye. I joined the Comvita board following Fraser & Neave's investment in the company. I currently serve as the CEO of BeerCo Limited and the Chief of the Beer Product Group for Thai Beverage Public Company Limited, where I oversee the beer businesses and brands across multiple markets. Over the course of my career, I have held various leadership and board positions in the food and beverage industry, with extensive experience firstly in finance, in investments, and in managing consumer businesses, particularly in Asia. Since joining the board, I have had the opportunity to get a better understanding of Comvita, its people, and the business.
As a Director, I see my role as bringing my experience and judgment to the board, providing constructive challenges and oversight, and working with fellow Directors and management to guide Comvita's strategy and performance, always acting in the best interest of the company. If reelected, I look forward to continuing to contribute my experience, particularly in commercial development, regional markets, and business operations as Comvita works towards building a stronger and more sustainable business. Thank you for your support. That is short and sweet, right?
Yeah. Thank you, Michael. Are there any questions in relation to this resolution number three from the floor? Are there any questions online?
Yeah. Michael, how will your election drive long-term shareholder value?
I think long-term shareholder value can be driven on my part by sharing my experience, my expertise, and I think to some extent, also facilitating the potential synergies that can be gained through Comvita working together with Thai Beverage. It's quite a large group. We've got quite a large route to market, especially in Asia, which is the fastest-growing region in the world today. We see a lot of opportunities there, and hopefully that will be converted into real opportunities and real results. I hope that answers the question. Thank you.
Thank you. Thank you, Michael. If there are no further questions, please cast your vote on resolution three, Michael Chye. I will now put the fourth resolution to shareholders, being the resolution that Mr. Peter Nathan, who was appointed by the board as a director to fill the casual vacancy with effect from 20th of July 2026, be elected as a director of the company. We will now play the pre-recorded message from Mr. Peter Nathan. Thank you.
Hi, my name is Peter Nathan, and I'm seeking election as a non-executive director in your company. I bring skills and experience which I believe will be very beneficial in assisting with the growth of Comvita. I have a deep background in fast-moving consumer goods, as I have over 30 years experience working a range of executive roles with Colgate-Palmolive, Gillette, and more recently, The a2 Milk Company. In my executive roles, I've gained valuable insight into many of the markets that Comvita operates in currently, as I've been resident in Australia, New Zealand, Taiwan, and Malaysia, and have been a very frequent traveler to China with over 40 market visits. My experience with The a2 Milk Company does have significant parallels with Comvita, as both operate in health-related categories and provide functional benefits but do not rely on strong health claims despite some very compelling supporting evidence.
I have the unique experience of being a key player who built a brand and business from scratch to a global powerhouse, a revenue of approximately NZD 1.4 billion in 14 years as my role as CEO Asia Pacific of The a2 Milk Company, a role that managed all the profitable markets within the a2 business. I have a deep experience in management of all of the sales channels that Comvita operates in, as well as functional experience and a compelling track record in the consumer marketing disciplines of market research, brand development, PR, and consumer communication. More recently, I have transitioned to company board roles, where I am a director within the FMCG waste management and dental sectors. This has given me valuable governance experience.
I am really very excited about the opportunity that Comvita has to build shareholder value at this critical time by optimizing our performance in the key markets that we operate in. I am a great believer in the key principles of focus and simplification, and I look forward to assisting the broader team in this endeavor. Thank you very much for your consideration of my election to your company.
Peter is not available for questions, so please would you cast your vote on resolution four. I will now put the fifth resolution to shareholders, being the resolution that Ms. Julia Xu, who was appointed by the board as a director to fill a casual vacancy with effect from 20th of July 2026, be elected as a director of the company. I will now ask Julia Xu to speak in relation to her nomination. Thank you, Julia.
Thank you, Bridget. Fellow shareholders and stakeholders, good afternoon. I had a whole speech, whether or not. I drafted, redrafted, but I thought I would rather just talk to you. For those of you who do not know me, my name is Julia Xu, managing director for Kauri NZ Investment Limited, which has been a shareholder for Comvita for the past 15 years. Today, I am asking for your continued support and trust in me to continue serve as a director of the company. So let me tell you a little bit about myself. I grew up in Shanghai, went to the States as a teenager into a working class neighborhood in Queens, New York. It was not very easy, but I figured it out. I think the immigrant tenacity has been instilled in me since a very young age. I worked in New York, Tokyo, and Hong Kong in finance.
Went back to business school. Joined Deutsche Bank in Hong Kong, covering Greater China's consumer companies. Then I joined as a CFO for a U.S.-listed renewable company. After I left the executive role, I joined its board, and still I am the audit chair today. 15 years ago, Mr. Xu brought me to New Zealand to establish Kauri NZ Investment Limited and build a business as an entrepreneur between China and New Zealand, and I think this is the bridge I bring to the company. I do have quite a bit of understanding of the Chinese consumption market. So serving Comvita is actually personal for me. We have been shareholders for the last 15 years, and like many of you, we have seen the ups and downs of the company.
We never left because we believed in Mānuka honey as a core part of daily wellness and in the Comvita brand, and also in New Zealand as its true home. I think directors, board members are accountable to shareholders, large and small. Creating long-term shareholder values will always be at the front of our mind. The challenges Comvita faces today are real, and we must change, whether that is in terms of the cost structure or winning new consumers globally. So I ask for your trust and support today to continue to serve as a director of this company, and I will work hard to earn your trust. Thank you.
Thank you. Are there any questions from those in the room, please? Are there any questions from those online?
Julia, how will your election drive long-term shareholder value?
As I mentioned, I think long-term shareholder value will always be the front of our minds. But, let's start small, just as Karl has indicated. We need to change, whether it's in our cost structure or our route to market or understanding or bringing more consumers globally into the Mānuka world. I think we can take incremental, small changes with a long-term aspiration of making this company a global brand.
Thank you.
There are no more questions. That being the case, please could you cast your vote on resolution five, Julia Xu. I will now put the sixth resolution to shareholders, being the resolution that Mr. Kosit Suksingha, who has been nominated to be a director by an equity security holder, be elected as a Director of the company. We are now going to play the pre-recorded message from Kosit Suksingha. Thank you.
Good morning, Chairperson Bridget, Directors, and fellow shareholders. My name is Kosit Suksingha, and I'm honored to have been nominated by Fraser & Neave Limited, or F&N, for election to the Board of Comvita. By way of introduction, I have spent much of my career in the consumer and beverage industry with experience spanning business operation, supply chain management, distribution, digital transformation, and corporate governance. I currently serve on the Executive Committee of Thai Beverage Public Company Limited, or ThaiBev, one of Southeast Asia's leading beverage groups. I'm also Chief of its spirit product groups and Chief Digital and Technology Officer. Previously, I led ThaiBev non-alcoholic beverage business and held senior responsibilities in supply chain management and route to market operations. I also serve on the board of various board committees of F&N and its listed Malaysian subsidiary, Fraser & Neave Holdings Berhad.
This role has given me valuable experience in overseeing business across different markets, as well as strong appreciation of the governance standards and accountability and responsibilities expected of directors of publicly listed company. What attracted me to Comvita is its strong heritage, trusted brand, and expertise in natural health product. Comvita has built a very distinctive position in the global market, and I believe there are opportunities to build on this strength and further develop its business. If elected, I hope to contribute my experience in consumer products, operational efficiency, distribution, and digital capabilities to support Comvita's continued development. I also see opportunities for Comvita and F&N to share knowledge and explore areas of collaboration that could benefit both organizations. I recognize that serving on the board of Comvita carries responsibilities to the company and its shareholders.
I would approach this role with commitment, an open mind, and a willingness to work constructively with my fellow directors and management. Thank you for considering my nomination. I would look forward to the opportunity to contribute to Comvita's continued success.
Thank you, Kosit. Are there any questions for Kosit from the people in the room? Thank you. Are there any questions online?
There is. How will your election drive long-term shareholder value?
Thank you, Kosit.
Yes. Good afternoon, shareholders. This is 3:00 A.M. in France, so I'm a little bit dizzy, a little bit. I would like to answer it this way, that first, I believe strongly in the quality of the product of Comvita. I think the company carries a very strongest brand in the market. The second one is because Comvita and New Zealand, I think to our belief, carry a strong opportunity to be a very strong global product. We believe that the capability of our business, mainly ThaiBev, which operates regionally in the Southeast Asia, could be a strong contributor to drive Comvita brands to Southeast Asia market and also to other part of the world through our strong holds in the route to market, especially in Southeast Asia.
That's the belief that we think a combination of our strong footprint in multinational areas can help bring Comvita to the world. Thank you.
Thank you. Are there any further questions online?
There is. Do you have sufficient spare time available to do the Comvita role justice?
Well, I think the short answer would be yes. As I'm not so sure if some of you know, I spent the last 10 years in my career traveling back and forth between Thailand and New Zealand. I think I do have a lot of love and also passions in working with a New Zealand company like Comvita. I would certainly contribute lots of my times with Comvita to make sure it's a success for our business. Thank you.
Thank you. Thank you. Please cast your vote with respect to resolution number six. I will now put the seventh resolution to shareholders being the resolution that Mr. Robert Major be removed from office as a director of Comvita Limited pursuant to Section 156 of the Companies Act 1993 and Clause 29.1 of the Constitution of Comvita Limited with effect from the close of the 2026 annual meeting of Comvita Limited. I will now ask a representative of PHC Investments to speak in relation to their shareholder proposal for the removal of Robert Major as a director. Yeah, sure.
Neville Cook. Here representing PHC Investments. Chair, fellow shareholders, I speak on behalf of PHC Investments Limited, and I want to begin with an acknowledgement 12 months ago, Comvita faced considerable financial and operational challenges. Bridget Coates assumed the chair during a particularly difficult period and took responsibility for repositioning the company. At last December's- The better.
Yeah. Do you want to come up this side?
I can go there. At last December's meeting, Bridget committed to repositioning the business before shareholders met again. She has delivered on that commitment. Comvita has completed a NZD 40.5 million recapitalization, welcomed Fraser & Neave as a strategic shareholder, and reported a NZD 7.7 million profit following a loss of more than NZD 100 million the previous year. Bridget, on behalf of PHC, thank you for your leadership and the progress achieved. The company is now entering a different phase, and with that comes the opportunity to consider the board best suited for its future. Comvita has already attracted new directors with relevant consumer brand and international market experience. PHC believes there is an opportunity to build further on that capability. It is in this context that PHC has proposed resolution seven and eight. These resolutions are not intended as personal criticism of either director or their contribution to the company.
They concern the principle of a fresh shareholder mandate. Both directors received their current mandate in December 2025, during a period of considerable financial uncertainty and from a shareholder register materially different from today's. Since then, the company has been recapitalized, returned to profitability, welcomed a new cornerstone shareholder, and substantially renewed its board. Our preference was for both directors to retire and offer themselves for re-election, allowing shareholders to determine whether they should continue in office. As that approach was not adopted, the removal resolutions provide the mechanism for shareholders to make that decision. Looking ahead, PHC would strongly support the appointment of additional independent directors with proven consumer brand and international market experience, complementing the existing board and supporting Comvita's next phase of development. The company has made substantial progress.
The question now is whether the board overseeing its next phase has the confidence of shareholders who own the company today. That is the purpose of resolutions seven and eight, and PHC encourages shareholders to support them. Thank you.
Thank you, Neville. Are there any questions with regard to Yes.
Thank you for your introduction to the resolution. I think it was rather disingenuous to the rest of the board, for singling out Chair Bridget Coates for the turnaround success, because I think, obviously, the prevailing board have been in position for that full year and have all played a role in that turnaround, as well as management, of course. Why should we trust you? As individual shareholders in this business, why should we trust a new entrant to the register, one that has put forward a resolution to overturn a decision made by shareholders collectively at the last AGM to appoint these people to the board? Why should we trust an investor that's put forward their own person to represent the board, at the expense of the independent directors that represent the vested interests of all shareholders, not just a single shareholder?
Why should we trust someone that's putting forward a resolution that a company that did not make full disclosure around the vested interests of PHC during the time of the board approving the placement of shares to PHC, and did not make a disclosure at that time about the vested interest of a backer and investor in PHC that was a former advisor to the board, the same advisor that was in position at the time of the takeover bid by Florenz? Why was that not all disclosed? Why should we trust you and your resolutions to have these two hardworking independent directors removed from the board?
Yes. Would you like to speak to that?
I'll mention.
Yeah. Test.
Testing. We did make disclosure with respect to.
Closed.
In terms of trusting us, we have a strong track record in achieving significant shareholder wealth. Peter Nathan, who worked closely with us with The a2 Milk Company, created billions for shareholders. That's what you should trust us. We are seeking new independent directors as part of this resolution, ultimately. It's not that we are looking to position ourselves with a bigger non-independent basis. We want independents on the board with the relevant experience that can drive shareholder value, and the trust should be in the track record of us achieving that.
Are there any further questions? Are there any questions online?
No.
Bob, I should have let you speak.
Well, good afternoon. That is me up there. There is a potted history of my career up there. I was going to say I will not repeat what you can read for yourselves, but seeing as a comment has been made around international FMCG experience, as it says , I headed Fonterra's operations in the Middle East, Hong Kong, and China. I worked for Fonterra for 28 years, and that is 15 years of those 28 years spent living in overseas markets. Most of that time, I headed the operations in those markets. All of those operations had FMCG businesses underneath them. While I am not an FMCG functional expert, I sure as hell know how FMCG companies work in overseas markets, and I know what works and what does not work. So I regard that as a bit of an insult, to be honest.
The other thing that is not up there is place of residence. I live in Mount Maunganui, and in fact, I am the only Director on the board now that lives in the Bay of Plenty, call it home, you know. I stood in front of you only 10 months ago, December last year, seeking your support for re-election to the board, which I received. Thanks very much. At that time, I did not quite expect that I would be back here so soon, and yet here I am. But in very different circumstances. This time last year, or this time 10 months ago, those slides showed a substantial loss. It was a serious loss. The company was in a serious position. We had bankers seriously on our backs.
When I spoke to you then, I made it clear that the board understood the severity of the situation and we had acted strongly to right the ship. We had in place at that time a new CEO. We had in place the lead team that was almost totally different, one exception, from that which had preceded. We had a significantly different board. We had worked to reduce overheads. We had worked to reduce the footprint in various international markets. We had a cash flow positive organization for the first time in quite some time, and we had inventory well down. The results you see today come from the base that was laid then, the decisions and actions that we took at that particular point in time, and all of it, not just Bridget. We took at that particular point in time.
It took an enormous amount of effort from the board, from the CEO, from the lead team, and from all the Comvita people, in fact, to get to the position that we are in today. I said 10 months ago that we were not out of the woods. We are not out of the woods yet, but we have come a hell of a long way. We know where we are going. With your support, with your mandate, I would like to be part of the team that gets Comvita to where it needs to be. So thank you.
Thank you. Thank you. Yes, Aaron.
Hi.
Test. Test.
These things come down to a little bit of credibility, Bob. How much did Fonterra China lose in your stewardship?
Fonterra China under my stewardship made a lot of money, actually. The losses came a bit later.
Just wait.
Sorry.
Are there any other questions? Are there any questions online? No. Thank you. Thank you. Greg, I'll ask you to comment. You're not going to speak again, are you, with respect to Greg? So, if we could just have your response with regard to resolution seven, which is Bob Major, the proposal for the removal of Bob Major. If you could mark your paper accordingly for, against, or abstain. Resolution eight. I will now put the eighth resolution to shareholders, being the resolution that Mr. Gregor Barclay be removed from office as a director of Comvita pursuant to Section 156 of the Companies Act 1993 and Clause 29.1 of the Constitution of Comvita Limited with respect from the close of the 2026 annual meeting of Comvita. We've had Neil speak already. Greg, could I invite you to speak, please?
Thanks, Bridget. Good afternoon, everyone. I think as we've all agreed, Comvita is a good company. It's a great brand, and I don't have any doubt that it has the potential to grow into a leading New Zealand export success story. I've really enjoyed the year that I've had. It's been tough, but I think we're well on the way if we continue to execute the strategy in front of us. As I say, I'm vested in the company, and I really believe in its potential for success. In terms of background, I stood in front of you less than a year ago. You know that I'm a commercial lawyer. I have extensive governance experience across a number of industries, commercial and sport. I've been involved in export companies for the best part of 30 years, starting with the wine industry.
I've been 23 or 24 years as the Chair of a startup log export company. It's now the largest exporter of logs out of Australasia, doing somewhere between NZD 1.5 billion and NZD 2 billion worth of log sales every year, predominantly to China but also into India. In terms of this company and my involvement, we've talked about the turnaround, both the returning of the company to profitability, its recapitalization and restructure. We're well-placed, as I've already said, to move the company forward, and I would like to be involved in that process. I think I have the right skills and ability to oversee, strategically, the company as it moves through that phase. The growth potential in the U.S., obviously continuing to do what we're doing in China and growing on that, plus the opportunity that sits in front of us in Southeast Asia.
All of that provides great opportunity for the company, and that opportunity is real. One other point I'd make just before I go is the governance mandate. I'm New Zealand-based. I'm an Independent Director, and as well as helping the company meet its NZX compliance requirements, we know that we've got three large shareholders, one strategic cornerstone investor. I think it's incumbent on me as an independent to, whilst we welcome, obviously, the input that those cornerstones will bring, to make sure that I challenge the non-executive directors and ensure that independent thought and process is brought to the company as we move forward. That's pretty much all I've got to say. Thanks for listening.
Thank you. Thank you, Greg.
Questions.
Sure. Thank you. Are there any further questions with respect to resolution eight? Are there any questions online?
No.
Thank you. Could I now ask that you mark your voting paper for resolution eight? Mr. Barclay, I will now put the ninth resolution and then pass over to Mike. Actually, I will pass over to Mike. Here we go.
Okay, resolution nine. I will now put the ninth resolution to shareholders, being the resolution that Ms. Bridget Coates be removed as a director of Comvita Limited pursuant to Section 156 of the Companies Act 1993 and Clause 29.1 of the Constitution of Comvita Limited, with effect from the close of the 2026 annual meeting of shareholders of Comvita Limited. That resolution there, I will now ask a representative of Mr. Tait, Mr. Bougen, and Mr. Craig to speak to in relation to the shareholder proposal for the removal of Bridget Coates as a Director.
Thank you. Thank you, Mike. Good afternoon, everybody. My name is Alan Bougen, and I am the co-founder and still a shareholder and a shared cause holder in Comvita. Today, I am speaking on behalf of Robert Tait, Neil Craig, and myself. We accept that changing the chair during a recovery carries risk. However, retaining leadership in which many shareholders have lost confidence also carries risk. Last year, under Ms. Coates' leadership, the sale of Comvita to Florenz for NZD 0.80 a share was presented as the only viable path for the company's survival. Shareholders rejected that proposal by voting it down. We want to sincerely thank those of you who supported that decision. I think we are all benefiting from that today. But why hawk off a company like Comvita for a price based on its highly impaired net tangible asset values? What the hell was going on?
Of course, we recognize the pressure that the company was under from the bankers to reduce debt. Before recommending the dramatic step of a full takeover, why would you not consult a few longstanding shareholders in confidence to test assumptions and explore all alternatives? For instance, in the room today is Neil Craig, former chairman director for 14 years with extensive investment connections. Robert Tait, he is online, former company director and audit committee chair. Myself as co-founder and ex-director. We were not consulted. Within six months, shareholders were asked to commit substantial further capital through a highly dilutive rights issue. That is another issue. But our deepest concern was the value that shareholders were being asked to surrender to achieve the sale to Florenz.
In the process of agreeing to the bid of NZD 0.80, Ms. Coates oversaw write-downs of net asset values after borrowings from around NZD 1.58 per share to approximately NZD 0.78 per share. Moreover, somehow, magically, this value -in -use calculation they used was consented to by the company's auditors in the June 25 financial statements. Note, these write-downs came on top of a massive destruction of value from the impairments of goodwill on financial assets over 2024. Just consider three small examples. Plant and machinery between June 24 and June 25, its reported carrying value fell from NZD 11.9 million to what it is today, NZD 157,000. Buildings fell from NZD 18.4 million to NZD 12.5 million. Mānuka forest investments from 9 million to 356,000. These are examples of unbelievably large deductions in value. How were they justified? Of course, we all understand that accounting carrying values are not market values.
But shareholders deserve to understand the assumptions behind these impairments and how they related to the recommended share price. Consider Comvita's international brand, a name built over decades with established customer relationships, market presence, and intellectual property. The absence of a separately recognized brand asset on a balance sheet does not mean it has no commercial value, for God's sake. So how was the brand and its future earnings potential reflected in the NZD 0.80 offer? Let's be clear. The impaired book value of assets recorded in the latest annual report do not accurately reflect the true market value of Comvita today. So taken together, these matters have caused us to lose confidence in Ms. Coates' judgment and continued leadership. If another takeover proposal emerges, shareholders absolutely need a board that will assess that offer independently, challenge its assumptions, and examine all credible alternatives.
They can't allow others, including, dare I say it, investment bankers, to take control of the process. We've raised our concerns directly with Ms. Coates and asked her to consider stepping down. She has declined. We absolutely support Karl Gradon as CEO and value Greg Barclay and Bob Major's contribution as directors. We believe Greg would be a strong chair while recognizing that appointment is for the board to make. This is a targeted leadership change designed to strengthen governance, accountability, and confidence in Comvita's future. We ask you to support the resolution to remove Bridget Coates as a director. Sorry to be the black hat for the day. Thank you.
Thank you, Alan, and I will now ask Bridget Coates to speak in relation to this proposal.
Thank you, Mike. Thank you, Alan. Can I just perhaps, in case it is not clear to everybody, that these were all board decisions, that the responsibility for the decisions that were made 18 months ago with respect to the Florenz takeover was in the context of an extremely difficult environment where the banks were under daily pressure on the company. We were desperately trying to preserve the company as an ongoing entity at the time. In retrospect, these decisions were made that might or might not be the right ones in the fullness of time. It is worth noting, of course, that the share price is exactly the same as it was. It has gone nowhere in that period, which really underpins the fact that it was a fair offer and that it was very important that we should put it to shareholders for them to make the decision.
It was not our decision. It was a shareholder decision, and that was made at that time. It was rejected. We subsequently went on in May this year to get a proposal together which did protect the interests of minority shareholders in terms of an ongoing position in the company, and we are very glad that that was possible at that time. A year ago, I did tell you that I told shareholders what the board would deliver, and totally acknowledge your comment about it is not just the Chair, of course. We strengthened the balance sheet, we restored profitability, and we did reduce inventory. Very importantly, at the time of the offer, Florenz's offer, we had one senior leader in the company. Karl was the only It was a very lean situation in terms of leadership at the time.
Today, I do welcome the opportunity to be held accountable to you for that achievement over this past year. As I outlined earlier, we have collectively, well, except Brett, collectively delivered on every one of those commitments. We have recapitalized and refinanced the business. We have set it up for return to profitability, as you have seen. We have reduced excess inventory, and we have an outstanding leadership team in place now that has been recruited from all sorts of different areas, both local and international, who can underpin the future of the company. These are the foundations for us all to support an improved share price and a stronger shareholder confidence over time.
I am personally very proud of the fact that I stood here last year and did make a promise to Alan that if these achievements had not been put in place, that I would step down this year. But those achievements have been put in place. We have a clear strategy. You have heard from Karl today. We have a program of action, which involves significant change in the business to make sure that we are ready for the agentic commerce and all of the challenges in the global markets that you are all very familiar with. This is not an easy environment to do business globally. My background is very much in the U.S. I have spent 20 years in FMCG in the U.S., as well as very significant periods in governance in New Zealand companies and in international companies.
You can see my resume there, and I don't intend to go through all of that in detail, but very happy, of course, to answer questions if you should have them. Many of you will already know me from previous years. Today, every director is up for recommitment by shareholders. I really welcome the fresh perspective that new shareholders can bring. I do believe that the board shareholders are best served by a board that combines both new directors and existing directors and brings a combination of independence and experience with the company over time, as well as bringing new thinking and new ways of looking at the very difficult markets that we face. That balance really does matter as we move from stabilization to growth. Ultimately, I am proud of what's been achieved over the last year, and I'm very committed to the opportunities ahead.
I believe I can continue to make a valuable contribution to Comvita's success going forward. I therefore respectfully ask for your support to remain as a director of Comvita. Thank you.
Okay. Thank you, Bridget. Now I'll ask if there are any questions in relation to this resolution from the floor.
Bridget, would you like to describe your style of chairmanship? Perhaps, you could give an example or examples of listed company chairpeople that you admire.
I am very committed to a collegial leadership style. You can see the quality of the leadership of the board members on the stage here. They are all highly skilled practitioners in terms of the leadership and experience that they bring. I believe you get the most out of people by listening carefully, by trying to work collaboratively across a boardroom, making sure that everybody has a chance to speak, and making sure that the company's interests are represented, in particular, that Karl and his leadership team is treated with respect and with careful consideration when they put forward proposals to us. I've worked with one of the most notable leaders, David Oskin at Carter Holt Harvey. Some of you will remember. An outstanding leader.
I took a lot of lessons from his leadership, and he was very much a consensus leader, and the company was very successful under his watch.
Another question here, I think. Bridget.
I'd just like to make a statement from a shareholder, and it's followed by a question. I've been involved with Comvita for nearly 30 years and have seen it grow into an iconic company with a well-established, successful, and valuable international brand. I have over many years watched it go through the usual growing pains of any successful company to establish a dominant position in its market, achieved with ongoing support by many local staff, suppliers, and shareholders. It is shameful of the Comvita board under Ms. Coates' leadership to see the company's performance deteriorate to a state where it is extremely vulnerable to takeovers by parties who can easily identify with its potential and the value of Comvita. The shareholders were let down by Ms. Coates leading the process that led to write-downs of Comvita's assets, consequently, the opportunistic takeover offer by Florenz.
In my opinion, these actions were reckless and what appeared to be under the guidance of the advisors who did not, nor did not want to, fully understand the potential of Comvita. Thank goodness that offer was quite rightly rejected by shareholders. All we can ask is that the Comvita board ensure its actions taken and process put in place to ensure that the company's potential is realized, and it is fairly valued when the next offer is received, and I am certain there will be one. I have no confidence in Ms. Coates as the person to lead the board and achieve this outcome. The question is, Ms. Coates, will you please step down and let someone else better suited lead Comvita forward?
This is for shareholders to decide. It is a resolution. You can vote against me if you wish, as everybody can, and as they will, today. That is the opportunity for them to do so, and that is the way that you change leadership in a company. Could I just say, if you should go back and look at the performance of the Comvita share price back from 2012 to the current day, it really sets out the story of what happened to Comvita. This is very much not the last couple of years, three years, that the story has played out.
It is very much the end and the recovery within those last three years, the long, slow decline of poor investments and mismanagement and global competitors and all sorts of other reasons that we don't need to revisit here and I've determined not to revisit because it does poke back into history, which is really not the point. The truth is, there's been many fathers and mothers of the decline of Comvita, and we are now addressing that, and I commit to do that.
Bridget, I think there's another question coming.
Hi.
Hello.
Thanks, Bridget. I still am struggling to understand your answer to one of the questions that was put to you, and in context of what happened last year, whilst you answered others. Neil Craig is a former Chair of Comvita. He has served there for more than 14 years. He is a highly respected figure in the New Zealand investment community, we all are aware of that, with extensive governance experience and investment sector connections. Given that deep knowledge, and the shareholders and the history, can you explain why somebody with that experience was not consulted on the decision early enough that may have impacted what happened sooner? Is the share price as it stands now, could that possibly be directly related to the turmoil that happened in the previous year?
No, I do not believe so, to the latter part of your question. Could I just remind everybody that Neil Craig, while a significant shareholder and a very respected member of this community and of the New Zealand financial community, was not an officer of the company. It would not have been possible to have given him information that could not have been given to all shareholders at that time. It was absolutely critical that the board and its advisors remain very focused on achieving an outcome. It is one of those very awkward situations that would have been very appropriate to have consulted with him, but it was simply not possible at that time, given the sensitivity of the market and the regulations that we are all subject to, including Neil, of course.
Are there any further questions from the room? If not, we will ask if there is any questions from online.
There is. Bridget, if you are to remain as a Director, how do you plan to drive long-term shareholder value?
Yes. Pleased to have this question, of course, which is the nub of the issue. Look, I think Karl has set out very clearly. We are committed to changing the way that this company does business. We can see opportunities that are not in the current markets and necessary with the current products that we have. We know that there are opportunities that will lead us into more attractive and more aspirational areas of the market than we have been involved. In some of our markets, we're just not achieving the results that we need. In others, there are further opportunities for us to invest and commit further resources, further people. U.S.A. is one very good example.
We need to double down on our opportunities in the U.S. and that's been clear to shareholders that the achievement of the Costco relationship, that Brett was instrumental in putting in place, has been very much a part of the success of the company in recent period. And the opportunities for further investment of similar kind, not the same, in the U.S. is very attractive to us. In order to do that, we do need to reposition the brand, the product in some cases, the leadership team that we have. And so those are all priorities that we'll be working on. Thank you. Sure.
I'll give you this one. Here we go.
Eric Shen, the shareholder more than 15 years.
Yes.
The company now returned to profit now from Karl, and I can see that, but I didn't see the share price changing a lot.
Yeah.
What's the measure that if in a year time, if you didn't see the share price changing, what's the board going to do for that? Secondly, I remember the day that the two CEO before saying in 2018 shareholder meeting being removed from the NZX 50. Do we have any plan to go back that, and what market value and share price we can achieve that?
Yes.
Thank you.
I believe we're 75th, I think, on the NZX, so we have some distance to go to get back into the NZX 50. The situation with regard to the share price, as you know, the share price will be the result of the achievement that this board is committing to do to make for you. We are absolutely dedicated to making sure that the company performs better, with far sharper, far more rapid approaches to market situations than it has done in the past. The business environment in global markets is very difficult. Those of you who are active globally will know that. You need to have a very highly active, highly attuned board and management team to be able to take advantages of changing market environments, changing consumer preferences, changing product preferences, and that is what we are dedicated to do.
No. I think we-
No. You just had.
Just one more quick one. I was in a meeting with Mānuka Health last week.
Yes.
They are saying they are number one now. Are they?
No.
They have the maximum of hives themselves rather than any company in New Zealand. Is that true or not?
Karl, would you like to comment?
I am not here to posture whether we are the biggest. I just want to be the best, for a start. In terms of absolute number of hives, I cannot tell you. I know that we have grown our hive numbers significantly this year. I do not believe that Mānuka Health would be number one. If I was to put them in any place, they would probably be third, but I do not have empirical data. We will have that information only at the end of the season, once the MPI releases the number of hives that are distributed across the country. Today, if they are, good luck to them. I do not believe that to be the case.
Thank you.
Thank you.
I will check if there is any further questions. There is one more question online.
Just one more and we will wrap it up. Bridget Coates, do you accept any responsibility for the apparent lack of shareholder cohesion? Do you feel like you have done enough to engage with all stakeholders?
I think that the meeting today is a result of the recapitalization which took place in May. It was four months ago. It was a very significant change in ownership of this company, and this is the consequence of that change. There is an opportunity now. Shareholders have taken that opportunity to realign, reshape their position in the company. They have put every single director up for your selection. The choice is in your hands. That is not so much a lack of cohesion around the board, which is a very collaborative and cohesive board, actually. But it is visions of the major shareholders may vary slightly, and this is what is being debated here today. Thank you.
Thank you for your questions. I think that wraps up the resolution. Please cast your vote, and I will hand back to Bridget for the final resolution.
Right. The final resolution is resolution 10. I will now put the 10th and final resolution to you, being the resolution that the total annual remuneration payable to all directors of Comvita Limited be increased by NZD 240,000 from NZD 610,000 to NZD 850,000, with effect from 1st of November 2026. Just worth noting, the number of directors has gone from six to eight, and the last time that the directors pool was changed was 10 years ago in 2016. Are there any questions in relation to this resolution from the floor? Yes.
Thank you. Neil Craig, Bridget. Nothing controversial here, don't worry. I see the resolution says going from 610 - 850.
Yes.
I would hope the interpretation of that will be relative to the number of directors-
Totally.
actually appointed. Maybe it would have been better to have a resolution that said we will keep it the same for another year while we are coming out of troubled times, and have the same amount per year, then think about stepping it up after another good year. That is how I would think of it. Look, I will leave it to you, but I am assuming that is how you will interpret it.
Totally.
Yeah.
The number of directors was fixed at eight. It is a cap, of course, as you know. The exact amounts are variable and will be determined by-
Yeah.
the number of directors that we actually have on the board, and reduced accordingly. We will publish in the annual report the detail of which of amounts to individual directors, and you will be able to see that at that time. Are there any further questions on this resolution 10? Are there any questions online?
Yeah. Why not wait until the company can pay a dividend to shareholders before raising directors' fees?
With the leadership of Fraser & Neave, and the expansion of the number of directors to eight, that would have meant a reduction from the current NZD 60,000, NZD 65,000 odd per director to accommodate eight directors as distinct from six. We were in a position where, because of the number of directors, we had to do something. It would have been preferable to wait, and we would have liked to have done so. But in the meantime, we could not have accommodated the additional requests for the additional numbers of board directors, which you have in front of you today. Yes.
8x 48 is NZD 480,000. NZD 610,000, now NZD 850. Can you go through-
Yeah, sure. We have not as a board decided the exact amounts, but you have committee memberships, committee allowances, and chair allowances that are in addition to the actual board director figures.
I think it shows poor judgment.
We will take your comments on board. Thank you. Are there any further questions? Anything further online? Thank you. Could I now ask that you cast your vote with respect to Resolution 10, which is the remuneration of directors. Slide 43, voting proxies received. This slide sets out an overview of voting proxies as received ahead of the meeting, and this is the last call for votes. MUFG, could you now please collect the voting papers from any shareholders in the room? Online attendees should now submit their votes if they have not done so. You will see a timer on the screen advising that you have five minutes remaining to do that. Thank you for your votes. Can you see a timer on the screen?
I ran out of time.
Are we waiting for the timer? No. You haven't? Are there any further votes? Kosit, Julia. Thank you for your votes. Voting is now closed. Our voting results will be released to the NZX once the vote count has been finalized. With the formal resolutions completed, I would now like to offer shareholders the opportunity to raise any final questions as part of general business. Several of the pre-submitted questions have already been covered off as part of this presentation. I will now respond to the rest of the pre-submitted questions before we open the floor. Pre-submitted questions, are there? No. Are there any pre-submitted questions?
Yes. No submitted before the meeting, but I have got three online here.
Three online. We will take the room first, I think. Is there anything from the room in terms of general business?
Good afternoon.
Yes.
Tony Berger Short, pensioner and minor shareholder. I have a question for Karl. You go on a lot about long-term value for shareholders. For someone your age, that might be fine. Someone our age, it does not sound good at all. Having put up with several years with no dividends, it is not a nice prospect to look forward to. So, how long is long term?
It is a great question. It is my birthday today, so I am a day older, and therefore I can at least acknowledge that I am a little bit further towards gaining the experience that I no doubt need to answer this question properly. Look, we will pay a dividend as soon as we possibly can. I can assure you that everyone on our leadership team is absolutely committed to delivering that outcome for you. At the moment, we are in the middle of a transition. That transition will take time, and unfortunately, it is because of the recovery and the depth that we needed to exit ourselves from, both from a cultural level and at a performance level. We are in the middle of our reset still. So, I am not in a position to be able today to tell you when that will be.
Our projections indicate that we're trending exactly in the right direction to allow us to do that. It won't be this year. Beyond that, the board, not myself, will be making that determination. I would imagine that I would like to be in a position to be talking with the board next year about how we do that, but I am not in a position today to commit to that.
Thank you.
Sorry, hopefully I haven't jumped the queue there. Look, thanks very much, and full empathy and sympathy to the board having to front on today's very tricky and difficult questions. I think you handled it very well, I have to say. Anyway, my question is around NTA, and look, well aware that under the circumstances prevailing a year and a half ago when this exercise was undertaken, that was a pretty conservative, if not pessimistic, view of outlook of the future. That resulted in fair value of those assets being very significantly impaired. Given current realities and a little bit more, I wouldn't say optimistic, but a little bit more realistic outlook. Albeit still conservative, of course. Would the board undertake a revaluation exercise of those critical assets to correct their book value?
Because if they're left the way they are, we're incredibly vulnerable to another low-ball offer to take over, and it's just something that should not leave a left unaddressed, in my opinion.
Mike.
[Non-English content] Brett. I think that process happens every year. I think the issues, first of all, in terms of a low-ball offer, I would be disappointed if we have just had three major shareholders invest that would consider accepting an offer at a time when we are rebuilding the company, and they have all joined the register with the prospect of Comvita in their minds and the potential to grow the value of it. I do not think that is a risk too much at the moment. I think more importantly, it is the sentiment and the confidence that shareholders have in the company and the board and the management team and the valuation of the company. Ultimately, what we need to start recovering those write-offs is recurring profitability. At the moment, I think we must be circa NZD 100 million market value at the moment.
We made a NZD 7.7 million profit last year. So in order to start recovering it, we need to start to get that profit up, and we need to show that we can do it on a recurring, regular basis rather than a one-off thing. On top of that, I think Karl has talked about the need to focus and streamline the business. So this is going to be a year of change. So we need to be able to prove that we have got through that year, made the changes we think the need to set the future up and prove that profitability is ongoing, sustainable, and then we can start to recover those assets, which is very close to my heart, and hopefully this goes one way. I will be able to come here with those written back and have a smile on my face.
Enjoy that. Thank you.
Yeah. Hi, Tom Davies, Rotorua. I have probably listened a little bit today about difficulty in international markets, and I would sort of like to see a board that is focused on opportunity and is excited about the future. Maybe that is a reflection of what you have been through. But it is something that I think you need to change. I am interested, and this is probably towards Karl a little bit, about balance sheet capacity that the business now has. You are not paying a dividend, so you are filling more balance sheet capacity, or you are going to be investing that money. So I am interested in where that is going. Is that going fundamentally into investment, in growing the business, or is it debt reduction still? I think maybe the other point I would make is that giving guidance is incredibly important.
And we all sit here with a share price that we have an issue with, but it is largely because we have not got any guidance. So I think getting guidance in the market is really important for the future of the business and the confidence of the shareholders. So I would be interested in your comments on those points.
Thank you, Tom. Good questions as always. Couple of things there, I guess, in terms of, well, we have not got debt to pay down, really. So we are working through how we allocate our capital as wisely as possible. And believe me, a lot of those are going into the short-term opportunities addressing the first question as well. When it comes to how we allocate capital going forwards, we have now got a set of criteria that we are using, which is robust and risk-assessed, which actually sets us up very well to ensure that it goes into the short-term, medium-term, and long-term objectives in parallel. And I am quite proud of the way the team has built that up. With regards to guidance, everyone wants to know the future, including myself.
And believe you me, if I was able to tell you today that we were in a position to give you that guidance, we would be. As you may be aware, there are quite a few things going on in our world today, and a lot of them happen to be in our key markets. So that is our watching brief. With regards to the honey crop ahead of us, we are seeing an increase in hive numbers. We do not know the impact on that. We do not know the impact of the El Niño event that is occurring as we speak with this beautiful day outside. We do not know the impact on our crop. While a lot of these things could be headwinds, they could also be tailwinds. And as a result, I am not in a position to be able to tell you with confidence the trading.
However, we are trading as we were expecting. Okay? So that is a very positive sign in terms of delivering what we say we are going to do, which I think I have said to you before is the key thing that management and board all need to step forward and deliver against our promise. So, I am not sure I am answering your question acutely in terms of the first part, but the second part in terms of guidance, we will be as soon as we have the confidence around those key material attributes that I spoke to so you get a better view. Otherwise, the share price will not move materially. I acknowledge that, and I think the board acknowledges that, and it was part of the process we went through and we assessed that exact point today. Thanks, Tom.
Thank you. We have a question online. Has the Comvita board had any discussions with parties, including any of the current shareholders, as to their interest or intention to acquire a major stake in Comvita, or to make a bid for the controlling stake or total takeover of Comvita? The answer is no. The new shareholders have came into the company in May. They are subject to takeover rules. Fraser & Neave is a 19.9% shareholder, and would not be able to go further than that without a full offer. The situation is, as you know, we would be obliged to tell you immediately if there were an offer received. Can I just say before we finish, though, Fraser & Neave, this company has been an extraordinary addition to this company already. They are a strategic shareholder.
Often in New Zealand, we don't get strategic shareholders who really lean in and are really available to support small New Zealand companies, and this is not the case. They have made their organization fully available to us. They have leant in with many different ways of boosting our value in Southeast Asia, in terms of science, in terms of market information. They have been exemplary. I think we should all be very grateful that we have a shareholder that will stand us in good stead in time, and I very much hope and expect that their commitment and dedication to our company will continue. Michael, I'd like you to pass that back to your colleagues. I'm very grateful to Fraser & Neave. Is there any further questions? Yeah. Testing.
Yeah, hi. Tom Davies' question over there was about guidance, and I accept that it's difficult in this particular market around guidance. But when we have got a reasonably clear view, and you're doing it a conservative basis, I'd urge you to think about that again when you've got some level of confidence. The other thing that's happened over, and I can understand in a way why, the last couple of years, we haven't had a lot of information flow outside the formal financial guidance for the year. I think major strategic events that, for example, Fraser & Neave rolling out a planned marketing drive in their home market would be a significant event from a strategy point of view. That's meaningful information to the shareholders. Or entering the Indian market through some planned process. That would be stuff that I think the shareholders would love to see.
We're not very good at doing that anymore, and I think I'd urge you to do that. I think companies, some overdo it, but I think some more successful companies from a market value point of view do keep the market better informed than Comvita does.
Thank you.
Yeah.
Karl, noted. Thank you. Yes, at the back, please.
I have a question.
Could I just say that we are well after 4:00 A.M. now.
I have a question.
We'll just take another-
I have a question.
three or four questions, if that's okay.
Okay. I have a question here.
Yeah, sure.
We have a National government that was proposing to bring in GM into the country. Where does the board sit on that? Because that will be disruptive for a lot of New Zealanders and a lot of companies like Comvita, et cetera.
Would you like to comment on that, Bob?
We haven't discussed it.
We've not discussed it as a board. It's still a- It's on the agenda. We've got an election in 10 days' time, so we'll certainly have to respond, as you say, if that should go that way. Thank you. Behind you, Aaron.
Anything online?
No further online.
Karl, just to follow up to the lack of guidance. All the verbiage and the plans and strategy sound good, but without some numbers, mate, they're just useless. I'd flip it around the other way, and I've been in your position and it's not, a forecast and a guidance, they're not easy, and you're going to get them wrong. To me, it just shows a complete lack of confidence. Three months into the year, you can't even put an estimate out there. It's just not doing anything is just as bad as putting a guidance out that ultimately is proven wrong. Got to get some balls, mate.
Thank you. Thank you, noted. Is there anything further? Nigel.
Hi, Bridget. My question is, in relation to Resolution seven, eight, and nine, all the voting's completed there, I know that now. Should any one of those or more get approved, my understanding is that would put the board composition in breach of the NZX Listing Rules. Is that correct? If so, what would the company's reaction and response be to that?
You're right. Because of the balance of independent directors, we are vulnerable in that respect. The board has discussed and has a strategy to address that, should that be necessary. We will be finding the results of the voting shortly, and we will take measures accordingly. Thank you all for attending today. I hope that it has been a valuable and useful meeting for you. As we look forward to the future, our focus is very much on Comvita's growth. Comvita is a highly prospective company with strong foundations and a great deal of potential. We have made important progress this year. We have a priority to build on that momentum, driving growth, improving performance, and creating increased value for you. We are moving forward with a sense of purpose.
You have expressed your view with respect to board composition, and the final results will be made available to you via the NZX later on today. The voice of the shareholders has been heard. We will now have a board, and I really would like to stress this and give you a lot of confidence, that we have a board going forward which will have a strong and unequivocal mandate for the future. You have had your voice heard. There will be a strong board as a result of this, and I hope that you will have confidence in the board accordingly, because that has represented the voice of all shareholders. The board, as you can see, all of the board is highly committed, experienced, and very, very valued members of the board.
We are responding to your wishes in terms of people coming and going, but you can rest assured that the board, as it remains, will carry Comvita forward with determination and pace. In conclusion, I would really like to thank my fellow Directors, and Karl and his leadership team, and in fact, all of our Comvita people around the world, for their commitment and for their contribution. Very importantly, I thank you for your attendance here today, for your involvement, with good grace, in our discussions today, and your continued support and belief in Comvita and its future. I now declare our meeting closed. Nikki, could you come and close our deliberations with a karakia? Thank you very much.