Comvita Limited

FY26 revenue increased to $213 million, reported NPAT was $7.7 million, and normalized EBIT was $16.4 million versus guidance of $15.5 million. Gross margin recovered to 53.9% in FY26 versus a normalized 50.8% in FY25, and operating profit before financing costs improved by $43 million year over year. Operating cash flow increased to $40.3 million, free cash flow was positive, inventory declined from $89 million to $79.9 million, and the balance sheet moved from net debt of $62.4 million to net cash of $0.5 million. The company completed refinancing with liquidity and covenant headroom through September 2028. For FY27, management said it is not giving guidance today and will update the market later once the apiary crop and sales channels are clearer.

Karl Gradon framed FY26 as a reset-and-repair year that delivered the priorities set at the start of the year: profitability, lower debt, normalized inventory and restored cash generation. His tone was confident but cautious, emphasizing that the business is now on a stronger footing yet still has work to do in systems, cost base, supply optimization, brand investment and channel execution. He highlighted a more diversified business, stronger leadership, a strategic investor in F&N, and a focus on disciplined growth rather than chasing volume at any price.

Mandy Tomkins-Dancey said FY26 reflected both operational improvement and the unwind of legacy issues from FY25, with normalized gross margin moving to 53.9% from 50.8% when FY25 provisions are adjusted out. She pointed to revenue of $213 million, operating profit before financing costs improving by $43 million, operating expenses down $8 million year over year, and operating cash flow of $40.3 million as evidence of stronger earnings quality and cash conversion. She also noted capital raise issue expenses of $3.42 million and failed SIA costs of $1.4 million, and said refinancing provides flexibility through September 2028 while capital allocation will prioritize liquidity, targeted investment and, eventually, a sustainable dividend.

Analysts focused on the quality of earnings and whether North America’s strong sales were being bought with lower margins or inventory sell-down, and management said the North America channel was strategic, that inventory has now been reset to target, and that the honey sold was not low grade. Questions also centered on cost reduction, with Karl saying the company has already cut headcount and is continuing structural reviews and overhead optimization across the value chain. Management confirmed FY27 guidance is not being issued yet, said dividend timing depends on earnings, cash generation and balance sheet strength, and described F&N opportunities, the India FTA, and the Medibee JV exit as still developing or mainly a timing issue.