Comvita finally returned to profit in the fiscal year 2026, as the Manuka honey producer gains momentum from its reset programme.
For the year ended June 30, the company achieved an operating profit of NZ$14 million, compared to a $29 million loss in the previous year. Gross profit also increased 38.8 per cent to $114.8 million, lifting gross margin to 53.9 per cent.
Net profit after tax returned to a positive position at $7.7 million, reversing a $104.8 million loss in FY25.
FY26 revenue reached $213 million, up 10.7 per cent from $192.4 million in FY25, driven by strong club retail performance in North America. Comvita sales soared 104.3 per cent in the market, while increased brand awareness and an enhanced operating model helped the company deliver profit in line with its guidance, management said.
“Comvita stands on considerably firmer ground than it did a year ago,” Comvita chair, Bridget Coates, commented.
“The improvements in revenue and profitability reflect genuine financial discipline across the business and deliberate actions taken under Comvita’s reset program.”
Management said FY26 saw progress across priorities set at the beginning of the year, including restoring profitability, recapitalising and refinancing, improving channel execution and strengthening the balance sheet and portfolio. These initiatives supported positive outcomes despite ongoing geopolitical and trade uncertainty.
The company’s completion of a capital raise, which it described as a “significant milestone” in the refinancing process announced in April, is part of these efforts.
Beyond North America, Comvita’s regional performance remained mixed. Sales in Greater China declined 4.7 per cent and profit fell 12.1 per cent, while sales across the rest of Asia grew 6.2 per cent year on year.
In ANZ, pricing pressures and softer Asian health demand weighed on results, driving a 5.8 per cent decline in sales and a 0.9 per cent fall in profit.
Coates said there is more work to do, but the business is now positioned to drive continued performance improvements.
Looking ahead, Comvita says it is entering FY27 with strong foundations to support long-term success, expecting that growth initiatives will take time to translate into earnings.
“Our focus now is on continuing to improve operational performance and returns, while pursuing targeted growth opportunities and maintaining financial discipline,” said CEO Karl Gradon.
