Comvita has identified accounting irregularities in the financial years 2023 and 2024, leading to the appointment of an independent chartered accounting firm for a review.
The interim findings revealed a reduction in reported net profit after tax of $1 million in both FY23 and FY24.
The independent firm's review has now been completed, uncovering further irregularities in FY24, resulting in an additional overstatement of $2m in net profit after tax.
This brings the total overstatement of post-tax earnings to $1m in FY23 and $3m in FY24.
Comvita reaffirmed its half-year guidance, with revenue expected to be broadly maintained and a net loss after tax of $6.5m to $7.5m.
The company said it has made progress in managing inventory and reducing debt, with net debt now expected to be lower than the prior corresponding period.
An update on cost-saving initiatives and the steps taken to address the accounting irregularities will be provided in the half-year results announcement on February 25.
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