But it reported a net loss after tax of $9.7 million in the year to June 30, 2020 after taking a $9.3m impact of write downs in non-operating matters.
The reported earnings before interest, tax, depreciation and amortisation (Ebitda) were $4.2m, including a second-half plus $13m that followed a first-half loss of $8.8m.
Revenue rose 14.5% to $196m and the restructuring has reduced net debt to $15.5m at year-end, versus $89m on the previous balance date.
That was a result of a $50m capital raise in June when existing shareholders took up 20m more shares at $2.50 each, along with good internal management of cash flow.
The structure and joint venture review was completed and write downs to zero value made of the Putake queen bee business, Kaimanawa joint venture beekeeping business, the Seadragon fish oil stake and the Medibee Apiaries joint venture in Australia.
Among the positive operating highlights were an 11% growth in revenue in China and 66% from the United States, where the second-half earnings came from.
By contrast the Australian and New Zealand sales dropped 24% to $52.8m and the company cited a government change in the definition of Unique Manuka Factor (UMF) and the impact of covid-19.
During the lockdown retail stores were closed and airport sales to overseas travellers dropped right away, chief executive David Banfield said.
The overall effects of covid-19 on the company were estimated to be $20m positive around the rest of the world and $12m negative at home, for a net positive effect of $8m.
Inventory at year-end was $122m compared with $132m in 2019, assets now $286m compared with $313m, and equity $211m compared with $173m.
The 2019-20 honey harvest was very strong with 700 tonnes brought in, including a 150% increase in honey with 10+ UMF.
Reductions in hive sites and the costs of servicing added $2.2m to results.
A new harvest model has been introduced for the coming season that reduces risk, Banfield said.
All sites had been evaluated on yield, quality of yield and the servicing costs.
If the honey harvest was to repeat last season’s volume then gross profitability would improve 40-50%.
A 10% drop in volume would produce the same contribution to gross profit as FY2020 and a poor harvest of say 410t would enable the apiary business to break even.
“Comvita is now leaner with a simplified and affordable customer-focused structure,” chair Brett Hewlett said.
There has been a reduction of 90 jobs in the company and the product lines have been reduced by 30%.
Management layers have been removed, the structure simplified and decision-making speeded up.
Following the announcements of the results, Comvita’s share price rose 8% to around $3.40.
But the price has been volatile this year, including a low of $1.50 in March and a high of $4.50 in May before the big issue took share numbers from 50m up to 70m.
