Comvita job loss numbers expected within 2 weeks

Comvita chief executive Scott Coulter says he could not comment on final numbers until the process was completed.

Staff at Comvita's head office in Paengaroa should know how many jobs will be cut by Monday week.

The fast-growing honey and health products company announced a surprise restructuring this week. Chief executive Scott Coulter confirmed to the Bay of Plenty Times that some jobs would be lost, but said he could not comment on final numbers until the process was completed.

"One of the commitments we made to our staff was to try and move as quickly as possible," he said. "People want certainty, but we have to do it right."

Mr Coulter emphasised that the restructuring was aimed at maintaining company profitability and was about refocusing the business on innovation and product diversification as well as adding further resources to its apiary and honey supply operations.

He also noted the NZ restructuring followed major reviews to Comvita's global operations.

"We've been in real growth mode for the last couple of years." As the company refocused, some imbalances in overhead had built up in head office, where most job losses were expected, he said.

There would be full redundancy packages for any affected staff, and Comvita had brought in outplacement support teams for staff.

Mr Coulter became chief executive earlier this year, but has been with the company for 13 years. Over that period, total staff numbers had grown from about 100 - then mostly in Paengaroa - to about 500 worldwide, including about 330 in NZ, with some 190 in Paengaroa.

"When you're growing frantically, you're just trying to put the resources in," he said. "The road up is never a straight line. And you always have to tighten your business."

Comvita has made a number of acquisitions and entered into several joint ventures over the past couple of years, and has significantly increased its honey supply. Mr Coulter confirmed the company would be putting more resources into apiary operations, innovation and product development, and branding and marketing.

"We're still really committed to the BOP," he said. "Over time we expect to be a good hiring company and corporate citizen. This isn't a signal Comvita is moving out of the Bay. But we've got to be competitive in the global marketplace."

Chairman Neil Craig said the board was fully supportive of the restructuring.

"The company has grown very rapidly," he said. Comvita had now taken costs out all around the world, including a major restructuring in Hong Kong, which involved a number of job losses, and closing down its Taiwan operation.

"All we've ever done in NZ at head office is grow the business very strongly, putting in overhead to support the growth around the world. We [now] have some excess capacity in areas where we're changing the emphasis."

The restructuring process was being carried out in "an open and honest manner" with staff, he said.

"It's aimed at preserving the profitability of the company. It's quite definitely not a retrenchment exercise."

Comvita financial results for the 15 months to 30 June 2016
• NPAT: $18.5 million
• EBITDA: $39.4 million
• Sales: $231 million
• Dividends per share: 18 cents