Back in black, Comvita to resume dividends

AUCKLAND: Manuka honey exporter Comvita returned to profit in the first half, driven by growth in its Chinese and North American markets.

The company’s net profit came to $3.5 million in the six months to December, compared with a $12.97 million loss in the previous corresponding period.

Operating earnings before interest, taxes, depreciation, and amortisation (ebitda) came to $10.6 million compared with a loss of $8.8 million.

Revenue rose by 5% to $98.9 million, with strong growth seen in its key markets and its core manuka category.

The firm maintained its guidance of an ebitda range of $20 million to $23 million for the June 30, 2021, year and said it planned to resume dividend payments at the end of that year.

Chairman Brett Hewlett said he was pleased with the progress.

‘‘The board and management have continued to transform the business at pace looking to ensure we deliver the performance that all Comvita stakeholders should expect,’’ he said.

Group chief executive David Banfield said Comvita’s focus growth markets, China and North America, had shown strong performances.

China is the world’s biggest honey market, valued at $1.8 billion, and Comvita’s longterm goal is to target growth there.

Revenue in China grew 20% and its net contribution 28% compared with the previous corresponding period as Comvita invested in brandbuilding.

There were ‘‘headwinds’’ in Australia and New Zealand because of Covid19 disruption in the unofficial daigou trade channels into China, Mr Banfield said.

Over the six months, net debt decreased by $1.6 million and honey inventory fell by $14 million. — The New Zealand Herald