Comvita reports significant FY25 losses amid challenging market conditions

Comvita Limited reported a net loss after tax of NZD (104,759) for FY25, a significant increase from NZD (80,417) in FY24. Revenue for the period decreased by 4.1% to NZD 192,428 from NZD 200,683 in the prior year, primarily due to weaker sales in Mainland China, partly offset by growth in the USA and Rest of Asia markets. Gross margin also fell to 43% from 54% in FY24, influenced by high-cost honey inventory and aggressive price discounting. The company recognized impairment charges totaling NZD 53,925 (FY24: NZD 64,190).

In response to these challenges, Comvita initiated a strategic reset, strengthening operating cash flow to NZD 34,136 (FY24: NZD 5,334) and reducing net debt by NZD 17,400 to NZD 62,400. Inventory was reduced by NZD 46,800 to NZD 89,043, which included a NZD 15,100 write-off provision. The company implemented NZD 12,600 in cost reductions and restructured operations, including the closure of underperforming units and a streamlined leadership team. Comvita also transitioned its e-commerce platform to Shopify and secured revised banking covenants through to December 2025.