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 half year results, released on 23 February 2026:

Comvita Limited (NZX: CVT) today announces its results for the six months ended 31 December 2025. The period reflects delivery against first-half priorities, a return to profitability, positive operating cash flow and improved operating performance, with the Company’s turnaround continuing.

Financial Highlights (1H26 vs 1H25)

• Revenue: $118.0m, up 18.3%

• Operating expenses: $49.7m, down 13.6%

• Normalised EBIT1: $10.0m, up $10.7m

• NPAT: $4.6m, up $11.1m

• Operating cash flow1: $20.8m, up $10.9m

• Free cash flow1: $16.4m, up $14.4m

• Net debt1: $48.7m, reduced $32.9m

• Inventory: $68.3m, reduced $52.5m

Comvita Chair, Bridget Coates, said the first half reflected clear progress in stabilising the business while recognising the work still ahead.

“We delivered against our first-half priorities, returning to profitability, generating positive operating cash flow, and continuing to reduce inventory and net debt.”

“Operational discipline is strengthening, leadership capability is being rebuilt, and the Company is executing with consistency. These are important foundations, but the turnaround is not yet complete.”

Ms Coates said recapitalisation remains the Board’s highest priority. “The process is progressing to plan, with the Board focused on its core objectives – certainty, equitable participation for all eligible shareholders and minimising dilution.”

“The Board has confirmed credible expressions of interest from both existing and prospective investors to support and potentially underwrite the capital raise, including interest from an offshore strategic investor. The Board is carefully assessing these options alongside continued constructive engagement with our lenders regarding extension of banking facilities from April 2026 subject to the recapitalisation.”

She confirmed that full-year performance remains in line with normalised EBIT guidance of approximately $14.3 million (normalised EBIT pre IFRS 16 $13.5M), subject to trading execution and market conditions.

Financial Performance

Revenue increased to $118.0 million, driven primarily by strong volume and sell-through in the US club-retail wholesale channel, improving overhead recoveries and supporting profitability. This offset sales challenges in the US club-retail digital channel and ANZ market, with other markets broadly stable overall.

Operating expenses reduced 13.6% to $49.7 million, reflecting continued cost discipline and benefits from FY25 cost-out initiatives. Transaction-related costs of $1.4 million were included in the first-half result. Normalised EBIT improved to $10.0 million, reflecting improved operating leverage and portfolio diversification. NPAT was $4.6 million, representing a material improvement year-on-year.