Comvita, a trans-Tasman producer of Mānuka honey and bee consumer goods, has revised its earnings guidance for the full year after recording several positive trends in recent months.
In its latest trading update, the company expects its normalised EBIT to be approximately $15.5 million in FY26, compared to the $14.3 million guidance provided in the first-half results announcement.
The company said Lunar New Year trading has concluded ahead of expectations, with solid performance across key Asian markets despite continued softness in general consumer sentiment.
The North American club retail partnership has also continued to perform strongly with sell-through in line with expectations.
In addition, the benefits of ongoing cost reduction initiatives continue to flow through, and earnings-to-cash conversion remains strong.
Despite these trends, Comvita cautioned that external uncertainties may materially influence the full-year outcome.
According to the New Zealand-headquartered and listed company, heightened geopolitical tensions related to the Middle East conflict are contributing to increased freight and fuel costs and global supply chain disruptions, which may impact its cost base and its ability to supply customers in certain regions.
As the situation is evolving rapidly, any negative financial impact remains difficult to quantify and has not been reflected in the firm’s forecasts.
Broader economic uncertainty, compounded by current geopolitical conditions, may also impact consumer sentiment across a number of Comvita’s key markets.
Last year, the company reported a decline in sales to $99.7 million.
