��һ�ǿ�����

Challenging trading conditions and high non-recurring expenses dragged��mānuka honey��maker Comvita into the red for the June year.��

The company reported a net loss of $16.8 million, subject to what it said was an “impairment adjustment yet to be quantified”, compared with $13.1m profit in 2023.��

Comvita, New Zealand’s biggest mānuka honey exporter, said trading conditions in China caused continued weakness in the fourth quarter, including knock-on effects from this slow-down to the rest of Asia, so 2024 results were below the previous guidance ranges.��

Revenue came to $204.5m, down from a previous guidance of $211m to $218m.��

Full-year earnings before interest, tax, depreciation and amortisation (ebitda) came to $17.1m from a previous a guidance of $23m to $28m.��

The net loss for the year included $10.8m of non-recurring items and non-operating costs after tax.��

Lower sales and the resulting higher finished goods inventory affected inter-company profits, affecting ebitda by $5.5m.��

Net debt finished the year at $79.7m and inventory at $138m, in line with prior guidance.��

Comvita faced a combination of non-recurring, non-operating costs net of tax of $7.3m and several negative tax impacts of $3.5m, including��commercial building depreciation tax changes.��

The board had engaged an independent expert to provide impairment advice.��

“The need to consider an impairment arises when there is a material gap between a company’s net total assets (tangible and intangible) and its market capitalisation,” the company said.��

“Any impairment is likely to have a further material negative, non-cash impact on the 2024 net profit.”��

Comvita said it would advise the market once that impairment was determined, in line with continuous disclosure obligations.��

Chief executive David Banfield said trading conditions in key markets were still challenging. And that, along with the $10.8m of non-recurring expenses and tax impacts, resulted in the “extremely disappointing” result.��

“Given ongoing trading uncertainty, we are focused on delivering significant cost reduction targets of $10m to $15m, as previously confirmed to the market, and to returning Comvita to the profitable growth that we delivered between 2020 and 2023,” he said.��

Chairman Brett Hewlett the board was reviewing options on how best to navigate market challenges, reduce costs, and to return the business to profitable growth.��

“We will be adopting a more cautious approach to the deployment of capital and resources whilst implementing a sharper focus on immediate value opportunities,” Hewlett said.��