Comvita overstated its earnings in the past two financial years due to accounting irregularities in its China subsidiary.
The irregularities relating to sales and accounts receivable caused the manuka honey brand to overstate post-tax earnings by $1 million each in 2023 and 2024.
The company said it has already tapped an independent chartered accounting firm to assist in a comprehensive review of the business.
An investigation is also ongoing, with oversight by the board and senior management.
Last August, Comvita reported that its net loss amounted to $77.4 million as revenue slid 12.7 per cent to $204.3 million in the last fiscal year.
