Comvita Limited · NZX:CVT

Comvita — FY2025 Earnings Presentation

26 slides from Comvita's earnings presentation, Aug 29, 2025

  1. Slide 1: Full Year Results FY25

    FULL YEAR RESULTS FY25 29 August 2025 Presented by: Bridget Coates, Board Chair Mike Sang, Director Karl Gradon, CEO

  2. Slide 2: Disclaimer

    DISCLAIMER IMPORTANT NOTICE This presentation is given on behalf of Comvita Limited. Information in this presentation: • Should be read in conjunction with, and is subject to, Comvita’s Annual Reports, Interim Reports and market releases on NZX; • Is from the audited Annual results for the year ende

  3. Slide 3: Agenda

    1) Current position and FY25 operating context 2) Key updates 3) FY25 financial result 4) Market and industry update 5) FY26 priorities and future focus FY25 RESULTS PRESENTATION 3

  4. Slide 4: Performance materially impacted by ongoing sector pressures

    • Performance materially impacted by ongoing sector pressures, alongside structural and execution issues dating back several years • Limited financial headroom and significant capital constraints • Tangible progress evident – positive free cash flow, reduced net debt, disciplined inventory and cost

  5. Slide 5: Mānuka honey sector remains under sustained pressure

    • Mānuka honey sector remains under sustained pressure - prolonged oversupply, pricing volatility, and softer consumer demand. • Elevated inventory costs from prior overpayment further compressed margins. • Significant capital invested to drive growth has not delivered expected results. • Reset prog

  6. Slide 6: Banking covenants and going concern

    Banking covenants • New covenants agreed with bank syndicate out to 31 Dec 2025, tested quarterly, including waiver of two covenants previously at risk and introduction of an EBIT covenant. • Agreed extension of working capital banking facility repayment, with a reduction in the facility from $44m t

  7. Slide 7: Scheme Implementation Agreement signed with Florenz Limited

    • Scheme Implementation Agreement signed with Florenz Limited (“Florenz”) to acquire all shares in Comvita by way of Scheme of Arrangement for a cash price of $0.80 cents per share, representing: o An equity value of approximately $56 million and an enterprise value of $119 million o A premium of 67

  8. Slide 8: FY25 Results Presentation

    . FY25 RESULTS PRESENTATION 8

  9. Slide 9: FY25 key financial metrics

    REVENUE OPERATING Underlying NPBT NPAT EXPENSES $192.4 M $114.4 M ($21.9 M) ($104.8 M) (4.1%) vs PCP (9.0%) vs PCP (1.2%) vs PCP (30.3%) vs PCP OPERATING FREE CASH FLOW NET DEBT INVENTORY CASH FLOW $34.1 M $25.3 M $62.4 M $89.0 M 539.9% vs PCP 273.2% vs PCP (21.8%) vs PCP (34.4%) vs PCP • Underlying

  10. Slide 10: Revenue of $192.4M, down 4.1% compared to FY24

    Revenue NZ$M 250.0 231.4 208.9 200.7 191.7 192.4 200.0 Revenue of $192.4M, down 4.1% compared to FY24 $200.7M. • Greater China down by $9.5M. 150.0 • Rest of Asia up $6.8m, while ANZ down $4.9M. 100.0 50.0 Underlying NPBT loss of $21.9M, increased by 1.2% vs. FY24 • Gross profit of $82.7M ($97.8M pr

  11. Slide 11: Reconciliation of non-GAAP measures

    • FY24 – FY25 total impairments and provisions of $136.7M. Reconciliation of non-GAAP measures • FY25 impairments of $53.9M and provisions of $18.6M. NZ$M FY24 FY25 • Provisions: Net profit before tax - Reported (85.8) (94.4) ▪ Inventory Impairment 64.2 53.9 ▪ Change in fair value in Biological Asse

  12. Slide 12: Summary of Balance Sheet

    COMVITA FULL YEAR RESULTS SUMMARY OF BALANCE SHEET NZ$M FY21 FY22 FY23 FY24 FY25 Inventory 101.0 132.2 137.3 135.8 89.0 • Total net assets of $54.9M at 30 June 25 following Cash and Cash equivalents 16.3 17.8 11.6 8.2 9.0 incremental provisions and impairment. • Cash at bank – relates to cash held i

  13. Slide 13: Net Debt and Inventory

    Net Debt NZ$M - (10.0) (4.6) (20.0) Focus in FY25 has been on reducing debt and inventory - both achieved through (30.0) (25.5) operating discipline and surplus asset sales (40.0) (50.0) (60.0) (53.4) (62.4) Net debt reduced by $17.4M - at $62.4M vs $79.7M at end of FY24. (70.0) (80.0) • Positive fr

  14. Slide 14: Operating Cash Flow and Free Cash Flow

    Operating Cash Flow NZ$M 40.0 34.1 35.0 30.0 24.8 25.0 20.0 15.0 • Operating cash flow positive $34.1M vs $5.3 in FY24. 8.9 10.0 • Primarily due to reduction in inventory of $31.7M prior to 5.3 5.0 2.8 provisions. - FY21 FY22 FY23 FY24 FY25 • Free cash flow positive $25.3M vs -$14.6M in FY24. • Stro

  15. Slide 15: FY25 Results Presentation

    . FY25 RESULTS PRESENTATION 15

  16. Slide 16: My mandate is clear: fix what's broken, protect what's strong

    MY MANDATE IS CLEAR: FIX WHAT’S BROKEN, PROTECT WHAT’S STRONG, AND IMPROVE PERFORMANCE. COMVITA'S STRENGTHS COMVITA'S DEVELOPMENT AREAS • Comvita has the best value chain in the sector. • Lost share and margin. • Global #1 Mānuka honey brand. • Weak execution of key commercial initiatives. • Strong

  17. Slide 17: Oversupply, economic uncertainty and demand fluctuations reshaping the industry

    OVERSUPPLY, ECONOMIC UNCERTAINTY AND DEMAND FLUCTUATIONS ARE RESHAPING THE INDUSTRY, WITH PREMIUM POSITIONING UNDER ATTACK. Market and industry dynamics remain challenging • Surplus supply driving market pricing down. • Several participants under strain, consolidation occurring at pace. • High stock

  18. Slide 18: Greater China

    Disappointing result : 10.9% decrease in sales, 24.8% decrease in profit compared to FY24. GREATER CHINA FY21 FY22 FY23 FY24 FY25 • China remains the most challenging market, with economic Sales NZ$M 93.1 96.9 106.3 86.6 77.2 slowdown and oversupply pressuring margins. Net Contribution NZ$M 19.9 23.

  19. Slide 19: North America

    Core growth market for Comvita. Has returned to strong volume growth, with 10.0% growth in sales and 15.2% growth in profit versus FY24. NORTH AMERICA FY21 FY22 FY23 FY24 FY25 • Performance result of increased distribution with key retailer. Sales NZ$M 24.7 31.8 35.6 26.1 28.7 Net Contribution NZ$M

  20. Slide 20: Rest of Asia, ANZ and EMEA

    Rest of Asia sales increased 18.5% versus FY24. REST OF ASIA • Rest of Asia honey markets growing steadily, but with FY21 FY22 FY23 FY24 FY25 increased competition. Sales NZ$M 25.3 27.3 31.8 36.6 43.3 Net Contribution NZ$M 6.4 6.6 8.3 1.8 0.9 • Focusing on channel improvements and profitability. Net

  21. Slide 21: Each region's context varies and requires a tailored approach

    EACH REGION’S CONTEXT VARIES, HAS A DIFFERENT ROLE TO PLAY, AND REQUIRES A TAILORED STRATEGIC APPROACH. MARKET CHALLENGES COMVITA STATUS OPPORTUNITIES Number 1 brand. Discount brands prevail. China Premium price. Volume end of market. Margin erosion. Growing online. Bulk retail partnerships. Intensi

  22. Slide 22: Execution Priorities

    EXECUTION PRIORITIES PROGRESS TO DATE TOP PRIORITIES FOR FY26 FUTURE FOCUS  Initiated new sales strategies in China ☐ Hold pricing integrity in premium ☐ Maintain number 1 brand position, and America segments and grow share in lower owning the global premium UMF grades. positioning.  Right-sizing

  23. Slide 23: FY25 Results Presentation

    . FY25 RESULTS PRESENTATION 23

  24. Slide 24: FY25 Results Presentation

    . FY25 RESULTS PRESENTATION 24

  25. Slide 25: Going concern considerations

    The Directors have carefully considered the ability of the Group to meet its liabilities as they fall due and concluded that the Group will continue to operate as a going concern. In reaching their conclusion, the Directors have considered the following factors: • Current assets exceed current liabi

  26. Slide 26: Impairment and inventory provisions

    IMPAIRMENT NZ$M FY24 FY25 • Impairment total of $53.9M after ‘fair value’ assessment of Comvita Fixed assets – Forests & Apiary (3.4) (20.9) carrying value. Right of use assets – Forests & Apiary - (9.0) • Apiary and Mānuka Forests impairment of $29.9M with continued Other fixed assets (15.7) supply

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