Comvita “Moving in the Right Direction”, but Still Faces a Long Road to Recovery

With banks closing in Comvita needed to show profitability, and did, in their financial half year to December 31. A February 23 presentation to shareholders of New Zealand’s largest mānuka honey company also came with the tease of a potential international investor to help reduce debt levels.

From July to December last year Comvita got back in the black, a NZD4.59m profit announced, up from a loss of NZD6.48m in the equivalent period a year prior. Eyes will now turn to full financial year results to be announced in August to determine if the industry’s flagship honey company can maintain the much-needed turnaround. A significant test will be whether Comvita can fund operations through profits rather than rely on heavy borrowings, as in the past.

That share price received a four-cent bump on the day of the half-year news, climbing to 72c. That continues a gradual increase from a near historic low of 48c in November, following shareholders’ rejection of a takeover bid launched by New Zealand health food company Florenz.

“Comvita is moving in the right direction again,” Board chair Bridge Coates announced.

“In saying this, we may remain mindful of the work still ahead to fully restore our financial strength and to deliver a sustainable long-term performance.”

The improved financial position through the first six months of Comvita’s financial year has been built through an 18.3% increase in revenue for the period, coming off the back of an aggressive sales strategy in the USA ‘supporting reduction of surplus inventory and operational efficiencies’. USA overtook China as Comvita’s leading market, the growth highlighted by a staggering jump in sales from NZD14.6m in HY2025 to NZD39.6m in the latest period. ‘Continued softer consumer demand’ in China saw sales there drop from NZD41.2m to 37.4m, compared to the 2025 corresponding period.

The aggressive sales strategy into the USA has helped lower inventory levels, that value having reduced NZD52.5m from 31 December 2024 to sit at 68.3m.

While still laden under considerable debt, that burden has been lessened with Comvita able to announce a reduction from NZD62.4m at June 30 2025 to 48.7m by the end of the calendar year.

Coates was bullish at the half-year results, saying “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”.

The claim of “executing with consistency” is an optimistic view of one set of positive half year results, but confidence is increasing as the company navigates a crucial next two months to its survival. Banks have given Comvita until the end of April to recapitalise the company. On that front Coates also had news that help might soon be at hand, announcing “interest from an offshore strategic investor in the food and beverage sector to underwrite a capital raise at a share price of NZD0.80, and a level and a quantum materially above the minimum NZD25 million, which is required to position the company appropriately”.

News on that front would be forthcoming as it progresses, inline with the April 2026 banking facility expiry, the chair said. However, Gradon has been reported, by the National Business Review, as describing the potential investor as “passionate about health and wellness and have been very successful in the health and wellness area”.

The NZD0.80 price mentioned by Coates alongside the potential investor is the same amount as the Florenz 2025 offer rejected by shareholders.