Comvita loss narrows to $9.7m, claims turnaround

Comvita. New Zealand's biggest manuka honey exporter, reported its annual result today. Photo / Hawke's Bay Today

Manuka honey exporter Comvita said its net loss narrowed to $9.7m in the year to June 30 from a $27.7m shortfall a year earlier with the company claiming its newly restructured business had turned around.

At an operating level, Comvita said its earnings before interest, tax, depreciation and amortisation (ebitda) came to $4.2m, compared to a first-half loss of $8.8m.

The second half's ebitda of $13m was driven by a focus on the growth markets of China and North America, Comvita said.

Comvita's net loss for the year included the impact of $9.3m in "non-operating items".

Revenue for the year increased to a record $196m, up 14.5 per cent on the previous corresponding period.

Comvita completed a $50m capital raise in June 2020 with strong support from both retail and institutional investors, bringing net debt down to $15.5m

Chairman Brett Hewlett said he was "encouraged by the turnaround" in Comvita's performance.

"We have made significant changes to the business to set ourselves up for long term profitable growth and have seen this start to materialise in bottom line improvements in the second half," he said.

Group chief executive David Banfield said the company had made far-reaching organisational changes.

"Having made these tough decisions, it's now our role to deliver strong performance in 2021 and beyond," he said in a statement.

Over the year, Comvita said it faced material challenges to its performance in New Zealand and Australia as a result of its airport, retail and - unofficial "daigou" trade channel being disrupted by Covid-19.

The created an $11m impact on revenue and associated margin in Australia and New Zealand in the second half, it said.

Comvita shares last traded at $3.33, up 19c or 6 per cent from Friday's close.