Highlights:

  • Revenue increased 18.3% to AUD 118.0 million in 1H26.
  • Normalised EBIT reached AUD 10.0 million, while NPAT rose to AUD 4.6 million.
  • Net debt reduced to AUD 48.7 million, with inventory down to AUD 68.3 million.

Comvita Limited (NZX:CVT) has reported its financial results for the six months ended 31 December 2025, marking a return to profitability and positive operating cash flow. The first-half performance was driven by revenue growth, lower operating expenses and continued inventory reduction, alongside progress on its recapitalisation plan.

Revenue Climbs, Profitability Restored

Revenue for the first half of FY26 rose 18.3% year-on-year to AUD 118.0 million. The increase was largely supported by volume growth and sell-through in the US club-retail wholesale channel, while other markets remained broadly stable. Sales challenges persisted in the US club-retail digital channel and the ANZ region.

Operating expenses declined 13.6% to AUD 49.7 million, supported by cost reduction initiatives implemented in FY25. Transaction-related costs of AUD 1.4 million were included in the result.

Normalised EBIT improved to AUD 10.0 million, an increase of AUD 10.7 million compared with the prior corresponding period. Net profit after tax (NPAT) was AUD 4.6 million, up AUD 11.1 million year-on-year.

Cash Flow and Balance Sheet Position

Operating cash flow for the half year totalled AUD 20.8 million, up AUD 10.9 million from the previous year. Free cash flow reached AUD 16.4 million.

Inventory reduced by AUD 52.5 million to AUD 68.3 million, generating AUD 22.5 million in cash inflow and improving the cash conversion cycle. Net debt declined by AUD 13.7 million from June 2025 to AUD 48.7 million as at 31 December 2025.

The company noted that further working capital improvements are not expected at the same level in the second half.

Operational Developments Across Markets

Comvita implemented revised sales strategies across Southeast Asia, China and the United States during the period. The company continued to maintain premium brand positioning supported by product innovation and portfolio development.

A club-retail partnership in the US exceeded sell-through expectations, while channel and customer diversification continued. The company also reported enhancements in accountability, risk management and operational discipline across its global operations.

Recapitalisation and Banking Facilities

The Board confirmed that the recapitalisation process is progressing as planned. Expressions of interest have been received from existing and prospective investors to support and potentially underwrite a capital raise at pricing above the current market price.

An offshore strategic investor in the food and beverage sector has expressed interest in underwriting a capital raising at AUD 0.80 per share, at a level above the minimum AUD 25 million required. Any such transaction may be subject to shareholder approval and Overseas Investment Office consent.

Discussions with the lending syndicate are ongoing regarding the extension of banking facilities beyond April 2026, aligned with the recapitalisation timeline.

Outlook for FY26

Full-year guidance remains unchanged. Normalised EBIT is expected to be approximately AUD 14.3 million (normalised EBIT pre-IFRS 16 of AUD 13.5 million), subject to trading conditions and execution.

The company is monitoring headwinds from ANZ markets and foreign exchange movements, while North American commercial partner performance remains in line with forecasts. The manuka honey season is progressing as expected, and Lunar New Year trading outcomes are yet to be finalised.

Second-half performance is anticipated to follow typical seasonal trends.

Comvita’s first-half FY26 results show a return to profitability, improved cash generation and continued balance sheet adjustments. With recapitalisation discussions advancing and banking facility talks underway, the company has outlined its focus areas for the remainder of the financial year while maintaining its earnings guidance.

FAQs

  1. What was Comvita’s revenue for 1H26?

Comvita reported revenue of AUD 118.0 million for the six months ended 31 December 2025, up 18.3% year-on-year.

  1. How much profit did the company report?

NPAT for 1H26 was AUD 4.6 million, compared with a loss in the prior corresponding period.

  1. What is the status of the recapitalisation plan?

The Board has received expressions of interest from investors, including an offshore strategic investor willing to underwrite a capital raising at AUD 0.80 per share, subject to approvals.