Comvita (CVT) investor relations material

Executive summary

• Revenue declined 4–4.1% year-over-year due to sector pressures, weakening demand, changing consumer preferences, and oversupply, especially in China.

• Net profit after tax loss was $104.8M, driven by impairments and provisioning; underlying NPBT loss was $21.9M.

• Positive free cash flow was restored, and net debt reduced through disciplined inventory and cost management.

• A scheme implementation agreement was signed with Florianz/Florenz at $0.80 per share, offering a premium to recent trading and greater certainty for shareholders.

• Performance was impacted by structural and execution issues from prior years and significant capital constraints.

Financial highlights

• Revenue for the year was $190M–$192.4M, returning to FY21 levels.

• Gross profit margin was 43%, or 50% excluding provisioning (down from 54% last year); gross profit $82.7M ($97.8M pre-provisions).

• Operating expenses decreased by 9% year-over-year, with $11.4M in opex reduction and $12.6M in cost savings.

• Net debt reduced to $62M–$62.4M; inventory reduced to $89M (down $46.8M).

• Operating cash flow was $34.1M, up 539.9% year-over-year; free cash flow $25.3M, up 273.2%.

Outlook and guidance

• No formal forward guidance; management expects further inventory improvements and a return to profitability in FY26, subject to execution and bank support.

• Board highlights need for long-term recapitalization if the Florianz/Florenz scheme does not proceed.

• Focus remains on further cost savings, right-sizing, and operational discipline.