This article first appeared on GuruFocus .
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Revenue Growth:Achieved revenue growth on or ahead of targets.
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Profitability:Returned to profitability with improved net contribution.
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Operating Cash Flow:Generated positive operating cash flow.
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Net Debt:Reduced net debt to 48.7 million from 62.4 million at the end of FY 2025.
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Inventory Reduction:Reduced inventory from 145.8 million at December 2023 to 68.3 million at December 2025.
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Normalized EBIT Forecast:Full year forecast remains at 14.3 million, or 13.5 million pre IFRS 16.
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Cash Conversion Cycle:Improved from 484 days to 239 days.
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Cost Savings:Achieved through procurement, formulation, and freight efficiencies, and organizational restructuring.
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US Club Retail Channel:Significant sales growth and increased net contribution.
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Release Date: February 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Comvita Ltd ( CVNZF ) reported improvements across all key financial metrics, including revenue growth, profitability, cash flow, net debt, and inventory reduction.
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The company has successfully implemented new sales strategies in key markets such as China, the USA, and Southeast Asia, leading to positive results.
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Comvita Ltd ( CVNZF ) has maintained its premium positioning and strengthened its global brand framework, supported by a focused innovation pipeline.
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The company has achieved significant sales growth in North America through its club retail partnership, contributing to increased net contribution.
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Comvita Ltd ( CVNZF ) has made meaningful progress in reducing inventory and net debt levels, with inventory normalization completed successfully.
Negative Points
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The Greater China region remains challenging due to mixed economic performance, weak consumer confidence, and sluggish domestic demand.
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The company faces aggressive e-commerce competition and relatively low consumer awareness in the North American market.
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Comvita Ltd ( CVNZF ) is dealing with intensifying competition in all markets, with the ANZ market remaining particularly challenging.
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The Asian Health Channel continues to underperform due to heavy reliance on China's economic recovery.
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The company is still working on recapitalization and restoring its financial position, delaying the return to a dividend-paying status.
Q & A Highlights
Q: Given Comvita's current financial improvements, what is the forecast for a shareholder dividend? A: The board prioritizes returning to a dividend-paying entity as soon as possible. However, the focus remains on recapitalization and restoring financial strength, so dividends are not being considered in the near future.
Q: What is the expected net share dilution outcome from the new capital raising? A: The exact parameters of the capital raise are still being finalized, so no statements can be made at this stage. The board is mindful of dilution and aims to protect existing shareholders' positions.
Q: Is the growth in the US Manuka honey market sustainable, and do you anticipate more growth or reduction in sales for Comvita in the short to mid-term? A: The US market has grown significantly, and household penetration remains low, indicating room for growth. Comvita is well-positioned to harness this growth by targeting the right consumer demographic.
Q: With the NZ dollar expected to rise, what risks have been considered regarding the US dollar? A: Comvita has taken a prudent, risk-averse approach to managing FX volatility and does not expect any surprises this financial year.
Q: How is Comvita managing its Manuka forest, which appears to be below expectations? A: The Manuka plantations are a long-term strategic enabler with a unique genetic profile. They underpin future innovation plans focused on provenance and science-based quality claims.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
