Comvita (CVT) H1 2026 earnings summary

Executive summary

• Returned to profitability in H1 FY26 with net profit of $4.6m, positive operating cash flow, and reduced net debt, meeting or exceeding H1 objectives and tracking in line with full-year EBIT guidance of $14.3m (pre-IFRS 16 $13.5m).

• Revenue increased to $118.0m, up 18.3% year-over-year, with operating profit and cash flow both significantly improved.

• Leadership team and strategy focused on higher-growth regions, disciplined execution, and operational turnaround.

• Recapitalisation process advancing with credible investor interest, constructive lender engagement, and focus on minimising shareholder dilution.

• Strategic recapitalisation pathway and operational discipline are stabilising the business and setting a foundation for sustainable growth.

Financial highlights

• Revenue reached $118.0m, up 18.3% vs PCP; normalised EBIT $10.0m, up $10.7m; NPAT $4.6m, up $11.1m; gross profit rose to $56.94m.

• Operating cash flow increased to $20.8m, free cash flow $16.4m, and net cash from operating activities more than doubled year-over-year.

• Net debt reduced to $48.7m, down $32.9m YoY; inventory reduced to $68.3m, down $52.5m YoY.

• Cash conversion cycle improved from 484 to 239 days, driven by inventory normalisation and sell-through.

• Cost savings achieved through procurement, formulation, freight efficiencies, and organisational streamlining.

Outlook and guidance

• Full-year FY26 normalised EBIT guidance maintained at $14.3m; key H2 drivers include North America partner performance, seasonal patterns, and operational efficiency.

• Monitoring trading, execution, and market conditions closely; further working capital improvements not expected at H2 FY26 levels.

• Lunar New Year and Manuka honey season results pending; yields expected in line with baseline assumptions.

• Cash flow forecasts indicate sufficient liquidity for the next 12 months.

• Strategic forecast anticipates continued profitability, subject to execution risk.