Comvita has confirmed a revised covenant package for its Q2 FY25 covenants, which will be tested as of December 31, 2024.
The company said it does not consider its present covenant structure to be appropriate and is in discussions with its bank syndicate.
Comvita also provided a half-year trading update, stating that it has broadly maintained its revenue in the first half of the year, despite a challenging 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 $6.5m to $7.5m for H1.
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 mentioned that its inventory levels will be lower compared to the same period last year and it anticipates a net positive operating cash flow for the first half.
Comvita will provide a more detailed update on its initiatives and progress in late February.
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