The New Zealand-based company discussed these updates during its Feb. 23 financial presentation covering the first half of FY26.
During this period, Comvita’s revenue was up 18.3% to NZD$118 million (US$70.6 million). Net profit after tax also reversed from a loss of NZD$6.5 million (US$3.9 million) to a profit of NZD$4.6 milllion (US$2.7 million).
“Lozenges are a key growing product group for Comvita and serve an important role in recruiting new consumers to our brand, given the affordable price point,” said Karl Gradon, CEO at Comvita. “Market access for lozenges is also relatively straightforward, enabling launches to be scaled across multiple markets.”
Viewed as a functional food, manuka honey is typically sold in pharmacies and health food stores at a higher price point than multifloral honey.
The grade and price of manuka honey are determined by its unique manuka factor (UMF). The higher the UMF, the greater its functionality and selling price. In Singapore, an entry-level manuka honey with a UMF of 5+ is sold at SGD$39.75 (US$31.42) per 500 gram bottle.
Comvita is now focused on expanding into new formats and claims, especially for its Greater China business, which has been slowing down for the past two years.
Sales in Greater China were down from NZD$41.2 million (US$24.6m) a year ago, to NZD$37.4 million (US$22.3m) in the first half of FY26. Net contribution from the region was 16.2%.
“China continues to be a challenging market with mixed results and uneven economic performance,” Gradon said. “While GDP grew in 2025, mainly through strong exports, there is still relatively weak consumer confidence and sluggish domestic demand.”
Comvita had witnessed strong growth and success in the Chinese market during the COVID-19 era as Chinese consumers sought manuka honey as an immune booster.
However, demand has declined since 2024 and the ongoing commoditization of lower-UMF manuka honey has posed challenges to its China revenue.
“Comvita continues to maintain its number one brand position and lead in China online channels despite ongoing weaker demand and commoditization and lower UMF grades,” Gradon said. “We continue to outperform at the higher UMF end of the market. While our sales are down, we are starting to stabilize our net contribution even with the challenging market environment.”
Alongside format innovation, the company recently added new flavors to its pure manuka honey range—namely yuzu and ginger, targeting Asian consumer preferences.
Sales for the total range, including the new products, are forecast to grow over 60% for this financial year, Gradon said.
“While the environment is more competitive, the long-term category opportunity is substantial, and it is one that we are very excited about,” he added. “To capture this opportunity, market and channel diversification, innovation, clear brand differentiation and disciplined execution are critical.”
In fact, Comvita has been formulating manuka honey with other functional ingredients as part of its R&D pipeline in recent years.
An example is its Night Rejuvenating Manuka Honey UMF 10+ sachet drink. Developed by its R&D team based in China, the product contains Rosa Roxburghii extract, artichoke extract and manuka honey for liver restoration.
Manuka honey sales up in the US
In contrast to its China business, Comvita reported rapid growth in the U.S. market.
Sales in the United Stated jumped from NZD$14.6 million (US$8.7 million) to NZD$39.6 million (US$23.6 million), reaching a record high since 2022. This market now contributes 9.7% to Comvita’s business, driven by club retail and the natural retail channel.
“In North America, as previously mentioned, it is absolutely clear that they are now the world’s largest Manuka honey market, and Comvita has been part of this growth through its club retail relationship,“ Gradon said.
”This relationship has delivered significant sales growth and also an increase in net contribution for the half year. While the net contribution percentage has declined, this excludes the positive benefit to manufacturing efficiency we have gained in New Zealand from the increased volumes.”
As in China, the company is focusing on product format and retail channel expansion for its U.S. business.
Recapitalization process
Comvita is also in the process of recapitalization, where there is interest from an offshore strategic investor in the food and beverage sector.
This comes after the board’s proposal to be acquired by Florenz Limited failed to gain traction among shareholders. A buyout by Florenz was intended to accelerate capital return to shareholders and provide capital strength to continue its business amid market headwinds.
Since the acquisition failed to take place, Comvita is prioritizing a recapitalization process.
“The recapitalization process is progressing according to plan, with the Board focused on its core objectives, which are creating certainty, ensuring participation for all eligible shareholders and minimizing dilution,” said Bridget Coates, chair of Comvita’s board of directors.
“We have confirmed credible expressions of interest from both existing and prospective investors to support and potentially to underwrite the capital raise, including interest at pricing levels, which are above the current market.”
According to Coates, one of the prospective investors is in the food and beverage sector outside New Zealand.
“This does include interest from an offshore strategic investor in the food and beverage sector to underwrite a capital raise at a share price of $0.80 per share and a level and a quantum materially above the minimum $25 million, which is required to position the company appropriately, and that would provide the company with additional financial flexibility.”
She added that the ultimate shareholding of the strategic investor would be determined by the participation of existing shareholders in the capital raise and may require shareholder approval and overseas investment office consent.
