Highlights

  • Comvita raised FY26 normalised EBIT guidance to approximately NZD 15.5 million, up from NZD 14.3 million.
  • Strong Lunar New Year sales and steady North American performance supported the improved outlook.
  • The company’s share price increased following the earnings upgrade announcement.

Comvita Limited (NZX:CVT) has issued a trading update for FY26, revising its earnings outlook upward following stronger-than-anticipated performance in key markets. The update highlights improved trading momentum after the first half, with specific gains from Lunar New Year sales and continued traction in North America. The revised guidance has drawn market attention, contributing to a noticeable lift in the company’s share price.

Earnings Guidance Revised Upward

Comvita has increased its full-year FY26 normalised EBIT guidance to approximately NZD 15.5 million, up from the earlier estimate of around NZD 14.3 million. The revision reflects improved trading conditions observed since the half-year results announcement.

The company indicated that performance across key Asian markets during the Lunar New Year period exceeded expectations. Despite softer consumer sentiment in some regions, demand remained resilient during the festive period, supporting overall revenue momentum.

Key Markets Support Performance

Trading in North America has remained aligned with expectations, particularly through the company’s club retail partnership. Sell-through levels have continued at anticipated rates, contributing to steady performance in the region.

Additionally, ongoing cost reduction initiatives have started to translate into financial outcomes, with the company reporting continued progress in earnings-to-cash conversion. These operational improvements have supported the upgraded earnings outlook.

Seasonal and External Factors Remain in Focus

The Mānuka honey harvest remains a key variable for the remainder of the financial year. With around 30% of extraction completed, the season is currently tracking in line with expectations, though final outcomes are yet to be determined.

At the same time, external conditions continue to pose uncertainty. Geopolitical tensions linked to conflict in the Middle East are contributing to higher freight and fuel costs, alongside global supply chain disruptions. Broader economic conditions and consumer sentiment across major markets also remain factors that could influence performance.

Share Price Reaction

CVT shares traded at NZD 0.72 per share on 17 March 2026. In the last five trading session, CVT share price jumped over 7%.

Crucial Financial Metrics

  • Revised FY26 normalised EBIT: ~NZD 15.5 million
  • Previous guidance: ~NZD 14.3 million
  • Guidance increase: ~NZD 1.2 million

Comvita’s latest trading update points to improved operating performance in FY26, supported by seasonal demand and ongoing cost initiatives. While uncertainties linked to the Mānuka harvest and global conditions remain, the upgraded earnings guidance has strengthened investor confidence, reflected in the company’s share price movement. The business has indicated it will continue to monitor developments and update the market as needed.

FAQs

  1. Why did Comvita raise its FY26 earnings guidance?
    The company increased its guidance due to better-than-expected Lunar New Year sales and stable performance in North America.
  2. What is the updated EBIT forecast for FY26?
    Comvita now expects normalised EBIT of approximately NZD 15.5 million for FY26.
  3. What factors could still impact the full-year results?
    Key risks include the final outcome of the Mānuka honey season, geopolitical developments affecting costs, and shifts in consumer sentiment.