Comvita (CVT) is on its way to achieving NZ$400m in sales revenue by FY20. It continues to benefit from locking in its honey supply and the investments it has made in enhanced production facilities and the rationalisation of its channels to market. Guidance for FY16 sales revenue of >NZ$180m and an increase in NPAT of 35% has seen us increase our forecast FY16 EPS by 4.4% to NZ$0.355/share and our valuation from NZ$4.73 to NZ$7.16. This, together with continued exploitation of operating leverage, should help the company achieve its stated+ objective of year-on-year increases in ROCE above the FY15 level of ~12%.
