Comvita has reported a disappointing financial performance for FY24, with revenue decreasing by 12.7% to NZD$204.3 million (approximately US$127.8 million). The company's net profit after tax fell dramatically by 142.6%, resulting in a loss of NZD$5.6 million (around US$3.5 million) [6612aeae]. The decline in revenue was particularly pronounced in Greater China, where sales dropped by 17.6% to NZD$89.8 million (US$56.2 million). Within mainland China, revenue fell by 23%, reflecting the broader economic slowdown affecting the region.
Sales in Australia and New Zealand also suffered, decreasing by 10.8% to NZD$36.4 million (US$22.8 million), while revenue from the US market declined by 26.6% to NZD$26.1 million (US$16.3 million). The honey market in China experienced a significant downturn, with overall sales falling by 17.5%, and manuka honey sales specifically down by 15.5%. Comvita's market share in China has also slipped from 60% in 2022 to 54% in FY24, indicating increased competition and challenges in maintaining its position [6612aeae].
CEO David Banfield expressed disappointment over the results, highlighting the impact of ongoing price wars and the slowing economy in China. In response to these challenges, Comvita has launched a value range of products in China and is conducting pricing tests to better align with market conditions. Despite the struggles, there are early signs of recovery, with manuka honey sales reportedly up by 7.3% year-on-year in July. The company is focusing on premiumisation and consumer education to enhance its brand appeal and regain market share [6612aeae].
