Comvita (CVT) H2 2026 earnings summary

Executive summary

• Returned to profitability in FY26 with NPAT of NZD 7.7 million, reversing prior year losses and strengthening the financial position through recapitalization and strategic investment from Fraser & Neave.

• Achieved significant debt reduction, normalized inventory, and restored positive cash generation, enabling successful recapitalization and operational improvements.

• Leadership team refreshed, bringing enhanced capability and accountability for the next growth phase.

• Strategic initiatives underway to accelerate growth in Southeast Asia and support long-term value creation.

• Focus shifted to operational improvement and targeted growth in strategic markets.

Financial highlights

• Revenue increased to NZD 213 million, up 10.7% year-over-year, driven by strong North American growth and improved market diversification.

• Net debt reduced from NZD 62.4 million to a net cash position of NZD 0.5 million.

• Operating cash flow rose to NZD 40.3 million, with free cash flow positive due to improved earnings and inventory normalization.

• Gross margin improved to 53.9% from a normalized 50.8% in FY25, reflecting manufacturing efficiencies and better procurement.

• Operating profit reached NZD 14.0 million, up from a NZD 29.0 million loss in FY25.

Outlook and guidance

• FY27 focus is on disciplined execution, operational improvement, and targeted growth in strategic markets, especially the U.S. and Southeast Asia.

• No formal guidance provided yet; updates expected as apiary crop and sales channels evolve.

• Risks include geopolitical disruption, variable honey harvests, and continued competitive intensity.

• Priorities include brand strengthening, innovation, and cost control.

• Growth initiatives expected to take time to impact earnings; external environment monitored closely.