Highlights:

Comvita lifts FY26 normalised EBIT guidance to about $15.5 million, up from the earlier $14.3 million outlook.
Strong Lunar New Year demand across Asian markets and steady North American retail performance supported results.
Ongoing geopolitical tensions and uncertainty around the Mānuka honey harvest remain potential risks.

New Zealand wellness and honey producer, Comvita Limited (NZX:CVT), has lifted its full-year FY26 earnings outlook following stronger trading momentum since the release of its first-half results. The company now expects normalised earnings before interest and tax (EBIT) for the financial year to reach approximately $15.5 million, compared with the earlier guidance of about $14.3 million.

The revised outlook reflects encouraging sales during the Lunar New Year period as well as stable demand from the company’s major North American club retail partner. According to Comvita, seasonal sales across key Asian markets performed better than anticipated, even though overall consumer sentiment remains somewhat subdued in several regions. The company also highlighted that sell-through in North America has remained consistent with expectations, reinforcing the strength of its distribution partnerships in the region.

In addition to revenue growth, Comvita noted that the impact of its ongoing cost-reduction initiatives is becoming increasingly visible across the business. Improved operating efficiencies and disciplined expense management have supported stronger profitability and healthy earnings-to-cash conversion.

Despite the improved earnings outlook, the company acknowledged that external factors such as the ongoing Mānuka honey harvest, geopolitical developments and global economic uncertainty could still influence final results for the year.

Strong Lunar New Year Sales and Retail Demand

Seasonal demand linked to the Lunar New Year celebrations played a key role in the improved trading performance reported by Comvita Limited. The holiday period traditionally represents an important sales window for premium honey and wellness products, particularly in Asian markets where gifting and health-focused products see higher demand.

During the latest trading period, Comvita reported that Lunar New Year sales exceeded its internal expectations. Several key Asian markets delivered solid performance despite a broader slowdown in consumer spending across parts of the region. The company’s established brand reputation and strong positioning in the premium Mānuka honey category helped maintain consumer interest during the important festive sales period.

Alongside the seasonal boost in Asia, the company also continued to see stable performance in North America. Sales through its major club retail partner remained consistent with forecasts, highlighting the importance of large retail distribution agreements for the company’s global growth strategy. Such partnerships allow Comvita to expand its reach while maintaining efficient product distribution across international markets.

Combined with improving operational efficiencies and cost controls implemented over the past year, the strong sales performance has contributed to improved profitability and ultimately supported the company’s decision to increase its earnings guidance for FY26.

Harvest Progress and Global Risks Still in Focus

Despite the improved outlook, Comvita Limited cautioned that several uncertainties could still affect its final performance for the financial year. One of the key variables is the ongoing Mānuka honey harvesting season, which directly impacts the company’s raw material supply and production levels. At present, around 30% of the honey extraction process has been completed, with early indications suggesting that the season is progressing largely as expected. However, the company noted that it remains too early to determine the final harvest outcome, as weather patterns and hive productivity during the remaining weeks can still influence total output.

In addition, global geopolitical developments continue to create potential operational challenges. Rising tensions in the Middle East have contributed to higher freight and fuel costs and increased uncertainty within international supply chains. For a company with a global distribution network, these developments could potentially influence transportation costs and delivery timelines to certain markets.

Broader economic conditions also remain an important consideration. Slower economic growth and cautious consumer sentiment in several markets may affect demand for premium wellness products. While the full impact of these factors remains uncertain, the company said it will continue to monitor developments closely and provide updates if any material changes arise.

FAQs

Why did Comvita Limited raise its FY26 earnings guidance?

The company upgraded its outlook after stronger-than-expected Lunar New Year sales in Asia and steady performance from its North American retail partnership, along with benefits from cost-reduction initiatives.

What is Comvita’s updated FY26 normalised EBIT forecast?

Comvita now expects FY26 normalised EBIT to reach around $15.5 million, up from its earlier guidance of approximately $14.3 million.

What risks could still affect Comvita’s FY26 results?

Key uncertainties include the final outcome of the Mānuka honey harvest, geopolitical tensions impacting freight and fuel costs, and weaker global consumer sentiment.