Comvita revises bank covenants, anticipates half-year loss

Comvita has provided an update on its bank covenants and half-year trading performance.

The company confirmed that its bank syndicate has a revised covenant package for its Q2 FY25 covenants, which will be tested as of December 31, 2025.

Comvita said it does not consider its present covenant structure to be appropriate and is in productive discussions with its bank syndicate.

In terms of trading, Comvita said it has broadly maintained its revenue in the first half of the year, despite challenges in the global macroeconomic environment.

However, the impact of competition and pressure on gross margin is expected to result in a net profit after tax loss of $6.5 million to $7.5m for the first half.

Comvita said it is making progress on cost-cutting and restructuring initiatives, with the majority of the benefit expected in the second half.

The company also provided an update on its inventory levels, which are expected to be lower than the same period last year.

Comvita will provide a more detailed update on its initiatives and progress in late February when it reports its half-year results.