Manuka honey exporter Comvita has updated its profit forecast. Photo / Hawke’s Bay today
Manuka honey exporter Comvita has updated its annual profit forecast after the completion of its third quarter.
The company said it now expects its operational EBITDA for the year June to be in the range of $ 22.5 million to $ 25.5 million, down from a previously announced range of $ 20 million to $ 23 million. dollars.
“The range increase is due to continued strong growth in its targeted growth markets China and North America (offsetting challenges Australia-New Zealand and Hong Kong), strong performance in the channel digital now accounting for over 30% of group sales, continued production efficiency gains and cost control, ”the company said.
Comvita said their new harvest model has proven successful in 2021, although this year’s harvest is below average.
The quality of the harvest and good cost control meant that the harvest would make a small contribution to the Group’s profits during this fiscal year, he said.
Comvita returned to profit in the first half, driven by the growth of its markets in China and North America.
The company’s net income was $ 3.5 million in the six months ending December, compared with a loss of $ 12.97 million in the prior corresponding period.
Operating EBITDA was $ 10.6 million against a loss of $ 8.8 million.
Comvita has had a history of ups and downs, often due to weather and seasonal fluctuations.
To complicate matters, there were regulatory changes on what constitutes mānuka honey.
For CEO David Banfield, who became chief executive in January of last year, the goal was to deliver sustainable profits, year after year.
For the year up to June 2020, the EBITDA reported by Comvita amounted to $ 4.2 million.
Its underlying full year Ebitda was $ 19.1 million.