Comvita Limited Analysis

Overview

Comvita's origins go back to the 1960s, when research was carried out on a honey and bee products-based therapeutic product range was developed. Exports to England and California commenced in 1989. In 1990 the company was restructured and began focusing on exports to Asia. Comvita shares began quotation on the Unlisted Security Market in September 2002 and the company moved to the NZSX market in 2006.

Performance

The following information was extracted from Comvita Limited's full year results, released on 29 August 2025:

Comvita Limited (NZX: CVT) today announces its audited financial results for the year ended 30 June 2025. FY25 was another difficult year, with results reflecting significant financial pressure and persistent headwinds across both external markets and internal operations.

Financial and Operating Summary

• Revenue: $192.4m, down 4.1% vs PCP.

• Gross profit: $82.7m, down 24.0% vs PCP.

• EBITDA*: ($74.2m), down 16.7% vs PCP.

• Underlying NPBT*: Loss ($21.9m), in line with guidance of ($20m) -($24m)

• Reported NPAT: Loss ($104.8m), down 30.3% vs PCP.

• Operating cash flow*: $34.1m, up $28.8m vs PCP.

• Inventory: $89.0m, down significantly (34.4 % improvement vs PCP).

• Net debt*: $62.4m, reduced 21.8% vs PCP.

• Strong market share maintained in high-grade UMF™ honey in China and the US.

• $12.6m cost reductions implemented, with further actions underway

Comvita Chair, Bridget Coates, said: “Comvita’s FY25 performance reflects the full weight of prolonged market disruption - particularly in China - compounded by internal challenges and limited financial headroom.

“The Company continues to navigate sustained structural pressure in the Mānuka honey sector, with prolonged oversupply, pricing volatility, and softer consumer demand weighing heavily on margins.

“These external pressures have been compounded by internal complexity, underperforming investments, and the cost of delivering a significant turnaround. We weren’t fast enough to adjust - and those same market dynamics have only intensified.

“Limited financial headroom and capital constraints have further restricted the Company’s ability to respond at pace. As a result, FY25 performance was materially impacted, including significant impairments.

“We recognise the impact this has had on our shareholders and the importance of delivering a clear path forward.

“The Company has taken urgent and decisive action to strengthen its balance sheet and operational footing, and important progress has been made. Free cash flow is now positive, net debt has been reduced, and greater discipline has been applied to inventory and cost management. These are early but important signs that the reset is beginning to take hold.

“However, the scale of the challenges means the reset alone will not be enough to restore balance sheet strength. That is why, following a comprehensive review of all strategic options, the Board signed a Scheme Implementation Agreement with Florenz in August.

“In our view, the Scheme provides greater certainty in a difficult environment, a choice for our diverse shareholder base and the strongest foundation for Comvita’s long-term brand, people, and market leadership.”