New Zealand Manuka honey producer Comvita has reported record earnings and revenue for the first half of FY 2023.
Despite the impact of Covid in Mainland China, Hong Kong, and the Asian Health Channel in Australia and New Zealand, the company’s operating profit jumped 60.9 per cent to $11.6 million and EBITDA increased by $13.4 million to 11.1 per cent year on year on total revenue up 6.8 per cent to $112.1 million.
However, offline sales were down 5 per cent for the half in Mainland China, and Net debt increased by $37 million due to increasing inventory to offset global supply chain disruption and the timing of debtor payments.
Comvita chairman Bret Hewlett said the company’s Focus business model, control of costs, investment in brand and team effectiveness has allowed it to deliver ahead of forecasts.
“We remain confident about the delivery of our 2025 plan and believe that the resilience we are showing in results despite matters outside our direct control is a testament to the ongoing transformation of the business,” continued Hewlett.
David Banfield, Group CEO, added that the company still recognises its inventory and net debt are above desired long-term levels, but remains confident that its new supply model will enable the business to deliver positive operating cashflows moving forward consistently.
“We are still forecasting inventory to be in line with PCP by the end of FY23 and remain confident that with our optimised supply model, we are on track to deliver inventory of c$85 million by 2025,” said Banfield.
