Comvita forecasts net loss, explores debt reduction options

Comvita has provided a financial and trading update ahead of the release of its full-year results in August.

The company expects a net loss before tax of $20-$24 million for the 2025 financial year, compared to $21.6m in the previous year.

This figure excludes any impairment.

Comvita said the decrease in revenue and gross margin was due to the challenging global environment, ongoing market volatility, and aggressive pricing by competitors in the Manuka honey sector.

However, it said operating cashflows had improved, driven by a reduction in inventories, leading to a decrease in net debt from $81.6m to approximately $63m.

The company said it is now working with its investment banking and legal advisors to explore options for further debt reduction.

Comvita remains in discussions with its lenders regarding covenant relief and the restructuring of its banking facilities.