Mānuka honey exporter Comvita returned to profitability in the financial year ended June 30 and directors have declared a small dividend of 4c a share to pay out 30% of net profit after tax.
Reported net profit after tax was $9.5 million, versus a loss of similar size in FY20.
After 18 months on a transformation strategy net debt has come down by two-thirds to $4.6m at balance date and the earnings before interest, tax, depreciation and amortisation (Ebitda) were up 500% to $25.5m.
Comvita chair Brett Hewlett says the much-improved performance was driven by focus on growth markets and channels and categories, underpinned by $12m of benefits from the transformation programme.
The number of product lines has been reduced by 30% and revenue in constant currency increased by 1.5% to $192m, about half of which was earned in China.
Digital channel sales in China increased from 41% to 57%.
“We are pleased to report strong earnings growth at the top end of guidance, good management of cash and working capital, and to be able to reward our shareholders with the resumption of dividends,” Hewlett said.
“In addition, we are particularly encouraged to publish our first greenhouse gas emissions report as we embark on the journey to be carbon neutral by 2025 and carbon positive by 2030.
“We believe our unique business model, with significantly increased investment in our brand and supported by our environmental and social causes, will see Comvita recognised by the investment community as a sustainable premium fast-moving consumer goods brand with associated multiples.”
Chief executive David Banfield says Comvita remained the leading honey category brand in China and the fastest-growing mānuka brand in North America.
Restructuring had been completed and the way forward was clear to get profitable growth across all segments.
“We have also proven that our new harvest model works, further increasing organisational resilience and reducing risk associated with variability of the weather,” Banfield said.
Total honey harvest was 370 tonnes compared with twice that weight in the previous season.
Guidance for FY22 includes Ebitda between $27m and $30m, a repeated $10m reduction in inventory and capital expenditure around $18m.
