Accounting Report- Jessica Miller

Prepare a report for an external user that interprets the annual report of a New Zealand reporting entity.

91407

By: J. Miller To: Lydia Paper: Accounting 91407, Annual report review

Executive summary
This report is prepared for Lydia who is considering purchasing shares in Comvita. The report aims to provide analysis of Comvita’s annual report and the viability of investing in stocks in the company to maximise the returns on their investment in Comvita.
Comvita is an international natural health and beauty products company with a strong New Zealand heritage. They are committed to the development of innovative natural health and wellbeing products, backed by creditable scientific research. Manuka honey is the core of the Comvita product range and they are the largest manufacturer and marketer in the world. They sell in 18 countries with offices in New Zealand, Hong Kong, Australia, Japan, Taiwan, South Korea and the United Kingdom.
Revenue for Comvita has increased impressively over the last year, along with the increase of the individual segments within the business has left Comvita in a financially sound state. Comvita has also invested and expanded showing good cash management. Their medical segment shows great potential for growth in the future, with their investment in Derma sciences paying off. With these reasons and Comvita’s record Net profit for 2012 of 8.224 million, gives me great confidence to recommend Lydia to invest in Comvita.

Table of Contents

Executive Summary
Table of Contents

1. Introduction 2. Conclusions 3. Recommendations 4. Discussion

5.1 Profitability 5.2 Cash Management/Liquidity 5.3.1 Operating activities 5.3.2 Investing activities 5.3.3