Full Year 2026 Comvita Ltd Earnings Call

August 28, 2026

Speaker #1: We've got a cocktail catalog. Good morning, and thank you all for joining us today. I'm Carl Graden, Chief Executive Officer of Comvita, and I would like to warmly welcome you to this online meeting.

Karl Gradon: Kia ora koutou katoa. Good morning, and thank you all for joining us today. I am Karl Gradon, Chief Executive Officer of Comvita. I would like to warmly welcome you to this online meeting. We will provide an update on Comvita's full year results for the year ended 30 June 2026. Today's presentation will be led by myself and our Chief Financial Officer, Mandy Tomkins-Dancey. We represent a new team, and before I allow us, I want to thank the entire global Comvita team for their efforts during this milestone year. I would also like to acknowledge our directors in attendance, Bridget Coates, Comvita's Board Chair, Mike Sang, Chair of the Audit and Risk Committee, Bob Major, Chair of the Safety and Performance Committee, Greg Barclay, Michael Chye, Julia Xu, and Peter Nathan, making up the rest of the director suite.

Karl Gradon: [Foreign language] Good morning, and thank you all for joining us today. I am Karl Gradon, Chief Executive Officer of Comvita. I would like to warmly welcome you to this online meeting. We will provide an update on Comvita's full year results for the year ended 30 June 2026. Today's presentation will be led by myself and our Chief Financial Officer, Mandy Tomkins-Dancey. We represent a new team, and before I allow us, I want to thank the entire global Comvita team for their efforts during this milestone year. I would also like to acknowledge our directors in attendance, Bridget Coates, Comvita's Board Chair, Mike Sang, Chair of the Audit and Risk Committee, Bob Major, Chair of the Safety and Performance Committee, Greg Barclay, Michael Chye, Julia Xu, and Peter Nathan, making up the rest of the director suite.

Speaker #1: We will provide an update on Comvita's full-year results for the year ended 30 June 2026. Today's presentation will be led by myself and our Chief Financial Officer, Mandy Tompkins-Dancey.

Speaker #1: We represent a new team and, before all else, I want to thank the entire global Comvita team for their efforts during this milestone year.

Speaker #1: I would also like to acknowledge our directors and attendees: Bridget Coates, Comvita's Board Chair; Mike Tsang, Chair of the Audit and Risk Committee; Bob Major, Chair of the Safety and Performance Committee; Greg Barclay; Michael Chai; Julia Zhu; and Peter Nathan.

Speaker #1: Making up the rest of the director suite, I will start the session today with a high-level performance review for 2026 and talk through our strategic and commercial performance.

Karl Gradon: I will start the session today with a high-level performance review for 2026 and talk through our strategic and commercial performance. I will then hand over to Mandy to provide more detail on our financial performance. I will, at the end of the presentation, provide our 2027 outlook before we move to a question and answer session. The simple message for 2026 is that Comvita delivered the priorities we set at the start of the year, returning to profitability, with NPAT of NZD 7.7 million and finishing the year in a materially stronger position than we started. We returned to profitability, materially reduced debt, normalized inventory, and restored positive cash generation. This helped enable us to complete the recapitalization and financing process, which gives the business a much stronger financial platform to move forward from. As part of the capital raise, Fraser and Neave joined our register as a strategic investor.

Speaker #1: I will then hand over to Mandy to provide more detail on our financial performance. At the end of the presentation, I will provide our 2027 outlook before we move to a question-and-answer session.

Speaker #1: The simple message for 2026 is that Comvita delivered the priorities we set at the start of the year. Returning to profitability, with NPAT of $7.7 million, and finishing the year in a materially stronger position than we started.

Speaker #1: We turned to profitability, materially reduced debt, normalized inventory, and restored positive cash generation. This helped enable us to complete the recapitalization and financing process, which gives the business a much stronger financial platform to move forward from.

Speaker #1: As part of the capital raise, Fraser & Neeves joined our register as a strategic investor. Several strategic initiatives are now underway that have the potential to accelerate growth across Southeast Asia and support long-term value creation.

Karl Gradon: Several strategic initiatives are now underway that have the potential to accelerate growth across Southeast Asia and support long-term value creation. During the year, we also completed a significant refresh of the leadership team, ensuring the business has the capability, experience, and accountability required for the next phase of Comvita's growth and development. The outcomes this year were hard-won. They reflect stronger discipline across the business and the benefit of decisions taken throughout the reset process. At the same time, I want to be clear that this is not the end of the work. FY26 stabilized the business, strengthened the foundations, and restored our financial flexibility. FY27 is about converting that stronger platform into consistent commercial performance and long-term value creation. I will now turn to the financial highlights for FY26. The year reflects a significant improvement in Comvita's financial position.

Speaker #1: During the year, we also completed a significant refresh of the leadership team, ensuring the business has the capability, experience, and accountability required for the next phase of Comvita's growth and development.

Speaker #1: The outcomes this year were hard. One, they reflect stronger discipline across the business, and the benefit of decisions taken throughout the reset process. At the same time, I want to be clear that this is not the end of the work.

Speaker #1: FY26 stabilized the business, strengthened the foundations, and restored our financial flexibility. FY27 is about converting that stronger platform into consistent commercial performance and long-term value creation.

Speaker #1: On our turn to the financial highlights for FY26. The year reflects a significant improvement in Comvita's financial position. Revenue increased to $213 million, and the business returned to profitability with reported NPAT of $7.7 million.

Karl Gradon: Revenue increased to NZD 213 million, and the business returned to profitability with a reported NPAT of NZD 7.7 million. Operating cash flow strengthened materially, and free cash flow was positive, supported by improved earnings, inventory normalization, and disciplined working capital management. The balance sheet also improved substantially. Net debt reduced from NZD 62.4 million to a net cash position of NZD 0.5 million, reflecting stronger operating cash flows, inventory normalization, and a successful recapitalization. Inventory reduced to around NZD 80 million, which is within a more sustainable operating range for our business. Importantly, these outcomes were delivered while completing the recapitalization and refinancing. The financial base of the business is now materially stronger than it was a year ago. This slide sets out the priorities we gave the market and the progress delivered against each of them.

Speaker #1: Operating cash flow strengthened, materially in free cash flow, with positive support from improved earnings, inventory normalization, and disciplined working capital management. The balance sheet also improved substantially.

Speaker #1: Net debt reduced from $64.4 million to a net cash position of half a million, reflecting stronger operating cash flows, inventory normalization, and the successful recapitalization.

Speaker #1: Inventory reduced to around $80 million, which is within a more sustainable operating range for our business. Importantly, these outcomes were delivered while completing the recapitalization and refinancing.

Speaker #1: The financial base of the business is now materially stronger than it was a year ago. This slide sets out the priorities we gave the market and the progress delivered against each of them.

Speaker #1: We returned the business to profitability ahead of guidance, strengthened the balance sheet, and brought inventory back into the more normal operating range. We maintained our premium brand positioning, sharpened our innovation pipeline, and delivered significant volume growth through strategic channel partnerships, particularly in North America.

Karl Gradon: We returned the business to profitability ahead of guidance, strengthened the balance sheet, and brought inventory back into the more normal operating range. We maintained our premium brand positioning, sharpened our innovation pipeline, and delivered significant volume growth through strategic channel partnerships, particularly in North America. We also substantially strengthened the leadership team during FY26. This team is now fully established, bringing the strategic commercial capability, experience, and accountability needed for the next phase of growth, operational improvements, and value creation. The key point is that FY26 was a year of delivery against the reset priorities. We now have a more stable platform, but we still have work to do in our systems, our cost base, supply optimization, brand investment, and channel execution. Before moving into our market performance, it is worth stepping back and looking at what is happening in the broader Manuka honey category.

Speaker #1: We also substantially strengthened the leadership team during FY26. This team is now fully established, bringing the strategic commercial capability, experience, and accountability needed for the next phase of growth, operational improvements, and value creation.

Speaker #1: The key point is that FY26 was a year of delivery against the reset priorities. We now have a more stable platform, but we still have work to do in our systems, our cost base, supply optimization, brand investment, and channel execution.

Speaker #1: Before moving into our market performance, it's worth stepping back and looking at what is happening in the broader Manuka honey category. Global demand is becoming more diversified.

Karl Gradon: Global demand is becoming more diversified. North America is now the largest Manuka honey market globally, and category demand continues to broaden beyond Greater China. We are leading this growth. At the same time, category growth is increasingly volume-led, which reinforces the need for brand differentiation, premiumization, and disciplined value creation. Supply dynamics are also changing. Industry inventories have reduced, raw honey pricing has stabilized, and quality supply is becoming more important. For Comvita, our vertically integrated model is a great advantage in this environment. The 2026 Manuka season was a great example of that. While some in the industry were cautious ahead of the season, our own supply position was very well managed by the team, supported by our forests, apiaries, and procurement discipline.

Speaker #1: North America is now the largest Manuka honey market globally, and category demand continues to broaden beyond Greater China. We are leading this growth. At the same time, category growth is increasingly volume-led, which reinforces the need for brand differentiation, premiumization, and disciplined value creation.

Speaker #1: Supply dynamics are also changing. Industry inventories have reduced, raw honey pricing has stabilized, and quality supply is becoming more important. For Comvita, our vertically integrated model is a great advantage.

Speaker #1: In this environment, the 2026 Manuka season was a great example of that. While some in the industry were cautious ahead of the season, our own supply position was very well managed by the team, supported by our forests, apiaries, and procurement discipline.

Speaker #1: Ending the year with our inventory imbalance was a significant achievement, and both our operations and apiary teams should be rightly proud of their strong performance.

Karl Gradon: Ending the year with our inventory in balance was a significant achievement, and both our operations and apiary teams should be rightly proud of their strong performance. The implication is clear: market and channel diversification, innovation, brand strength, and supply security matter more than ever. Our overall market performance in 2026 was mixed, but the direction of travel has improved. Intentional diversification of channels and geographies is a key part of our strategy. Growth in North America and the rest of Asia helped offset continued headwinds in China and softer trading conditions in ANZ. We saw strong club retail performance in North America, continued leadership in China, expanded distribution in selective markets, and encouraging momentum from innovation and premiumization. At the same time, we are not underplaying the challenges. China consumer demand remains softer.

Speaker #1: The implication is clear: market and channel diversification, innovation, brand strength, and supply security matter more than ever. Our overall market performance in 2026 was mixed.

Speaker #1: But the direction of travel has improved. Intentional diversification of channels and geographies is a key part of our strategy. Growth in North America and the rest of Asia helped offset continued headwinds in China and softer trading conditions in ANZ.

Speaker #1: We saw strong club retail performance in North America, continued leadership in China, expanded distribution in selective markets, and encouraging momentum from innovation and premiumization.

Speaker #1: At the same time, we are not underplaying the challenges. China consumer demand remains softer, parallel imports and lower price competition continue to place pressure on the entire category, and some markets remain uneven.

Karl Gradon: Parallel imports and lower price competition continue to place pressure on the entire category, and some markets remain uneven. What has changed is the business is now better positioned to manage through those conditions. We have a broader market base, clearer channel priorities, and stronger execution discipline. Greater China remains our toughest market, but it also remains a market where Comvita has significant brand strength. In FY26, we maintained our number one brand position with more than 50% market share and retained leadership in online sales. Locally led innovation helps strengthen our consumer engagement and create new consumption occasions, which is important in a category facing more value-conscious consumers. The challenges are clear. Consumer demand is still softer. The category continues to see commoditization, and the pricing pressure from parallel imports and lower price competition remains a headwind. However, our focus is therefore disciplined and targeted.

Speaker #1: What has changed is the business is now better positioned to manage through those conditions. We have a broader market base, clearer channel priorities, and stronger execution discipline.

Speaker #1: Greater China remains our toughest market, but it also remains a market where we have strong brand strength. In FY26, we maintained our number one brand position with more than a 50% market share and retained leadership in online sales.

Speaker #1: Locally led innovation helped strengthen our consumer engagement and create new consumption occasions, which is important in a category facing more value-conscious consumers. The challenges are clear.

Speaker #1: Consumer demand is still softer. The category continues to see commoditization, and the pricing pressure from parallel imports and lower price competition remains a headwind.

Speaker #1: However, our focus is therefore disciplined and targeted. We will continue to capture volume growth in large-scale retail and online channels, and expand our premium UMF footprint.

Karl Gradon: We will continue to capture volume growth in large-scale retail and online channels, expand our premium UMF footprint, our new innovation and formats, and optimize our store retail network. The objective is to protect leadership and rebuild quality growth rather than chase volume at any price. Under new leadership, North America was a key driver of our FY26 performance and is now our most significant growth market. Strong club retail performance supported volume growth, sell-through, and inventory normalization, while also introducing Manuka honey to US consumers at scale. We also maintained our leadership position in natural retail and extended our distribution across priority channels. Importantly, North America is no longer simply a volume growth story. It is creating broader consumer awareness of the Manuka honey category, increasing category participation, and is helping establish a platform for growth across multiple markets.

Speaker #1: Our new innovation and formats, and optimizing our store retail network—the objective is to protect leadership and rebuild quality growth rather than chase volume.

Speaker #1: At any price. Under new leadership, North America was a key driver of our FY26 performance and is now our most significant growth market. Strong club retail performance supported volume growth, sell-through, and inventory normalization.

Speaker #1: We also introduced Manuka Honey to US consumers at scale. We maintained our leadership position in natural retail and extended our distribution across priority channels.

Speaker #1: Importantly, North America is no longer simply a volume growth story. It is creating broader consumer awareness of the Manuka honey category, increasing category participation, and is helping establish a platform for growth across multiple markets.

Speaker #1: We are grateful for the scale and momentum our club retail partner provided, but we are also managing concentration risk and profitability carefully. The focus is on building a durable and diversified North American business across retail partners, natural grocery, e-commerce, and emerging digital platforms.

Karl Gradon: We are grateful for the scale and momentum our club retail partner provided, but we are also managing concentration risk and profitability carefully. The focus is on building a durable and diversified North American business across retail partners, natural grocery, e-commerce, and emerging digital platforms. The opportunity is significant, but the market is competitive. Our priorities are to grow brand awareness, increase household penetration, expand distribution in the right channels and formats, and continue to build digital commerce capability. Across our other markets, the focus has been on improving profitability, sharpening channel execution, and expanding reach in priority areas. The rest of Asia continued to build momentum with strong performance in markets such as Singapore and South Korea, supported by retail optimization, digital growth, and key distribution partnerships. In Japan, the focus has been more on resetting the platform for improved profitability.

Speaker #1: The opportunity is significant, but the market is competitive. Our priorities are to grow brand awareness, increase household penetration, expand distribution in the right channels and formats, and continue to build digital e-commerce capability.

Speaker #1: Across our other markets, the focus has been on improving profitability, sharpening channel execution, and expanding reach in priority areas. The rest of Asia continues to build momentum with strong performance in markets such as Singapore and South Korea, supported by retail optimization, digital growth, and key distribution partnerships.

Speaker #1: In Japan, the focus has been more on resetting the platform for improved profitability. We are particularly encouraged by the engagement of our new strategic shareholder, F&N.

Karl Gradon: We are particularly encouraged by the engagement of our new strategic shareholder, F&N. As mentioned earlier, several strategic initiatives are now underway across channels, innovation, and supply chain that have the potential to create and accelerate growth across Southeast Asia for long-term value creation. ANZ does remain challenging, particularly given weaker consumer conditions and ongoing pressure in the Asian health channel. But margins improved in parts of the portfolio, and we continue to see opportunities through pharmacy, tourism, and owned brand experiences. In Europe and the Middle East, the move to a distributor-led model is improving efficiency and profitability, with new growth opportunities emerging through strategic partnerships. The common theme across these markets is disciplined channel focus and growth where we can get an appropriate return. Innovation is not only about launching new products and leveraging our proprietary science.

Speaker #1: As mentioned earlier, several strategic initiatives are now underway across channels, innovation, and supply chain that have the potential to create and accelerate growth across Southeast Asia for long-term value creation.

Speaker #1: ANZ does remain challenging, particularly given weaker consumer conditions and ongoing pressure in the Asian health channel. But margins improved in parts of the portfolio, and we continue to see opportunities through pharmacy, tourism, and owned brand experiences.

Speaker #1: In Europe and the Middle East, the move to a distributor-led model is improving efficiency and profitability, with new growth opportunities emerging through strategic partnerships.

Speaker #1: The common theme across these markets is disciplined channel focus, and growth where we can get an appropriate return. Innovation is not only about launching new products, but also about leveraging our proprietary science.

Speaker #1: It is about strengthening our brand relevance, premium positioning, and future growth opportunities. In FY26, we continue to build innovation platforms around products and formats that expand how Comvita is used.

Karl Gradon: It is about strengthening our brand relevance, premium positioning, and future growth opportunities. In FY26, we continued to build innovation platforms around products and formats that expand how Comvita is used. This included new Manuka Honey Lozenges variants, locally led eye health innovation in Asia, focused on the growing need to address eye problems that come as a result of prolonged screen time, and the elevation of our super-premium UMF29+ Mānawai Mai First Harvest product, which tells a stronger single-source story from our own Manuka forests. Our science program is also central to differentiation. In a category where many competitors can make similar broad claims, proprietary science and clinical evidence are what allow Comvita to stand apart. Our Lepteridine work and upcoming gut health clinical trials are important examples of how we are building a science-based platform that can support future premium innovation.

Speaker #1: This included new Manuka honey lozenge variants, as well as locally led eye health innovation in Asia, focused on the growing need to address eye problems that come as a result of prolonged screen time.

Speaker #1: And the elevation of our super-premium UMF 29+ Mānuka Waimai first harvest product, which tells a stronger single-source story from our own Mānuka forests.

Speaker #1: Our science program is also central to differentiation. In a category where many competitors can make similar broad claims, proprietary science and clinical evidence are what allow Comvita to stand apart.

Speaker #1: Our Lepteridine work and upcoming gut health clinical trials are important examples of how we are building a science-based platform that can support future premium innovation.

Speaker #1: The focus is disciplined innovation—fewer, better opportunities that strengthen the brand, create new usage occasions, and support long-term category leadership. A more efficient operating model was also a major contributor to our FY26 success.

Karl Gradon: The focus is disciplined innovation, fewer, better opportunities that strengthen the brand, create new usage occasions, and support long-term category leadership. A more efficient operating model was also a major contributor to our FY2026 success. We reduced inventory, strengthened procurement discipline and forecasting tools, improved manufacturing utilization, and continued to sharpen our sales and operations planning. These actions supported margin recovery, working capital improvements, and stronger cash generation. The reset has also reinforced the importance of making better use of our existing assets and infrastructure. In-sourcing selected production, improving planning tools, and reducing avoidable waste all help to improve returns from the operating base we already have. There is still more to do. We will continue to optimize our cost base, our operating model, and capability to support a more globally integrated and scalable business. I will now hand over to Mandy to provide additional detail around our financial performance.

Speaker #1: We reduced inventory, strengthened procurement discipline and forecasting tools, improved manufacturing utilization, and continued to sharpen our sales and operations planning. These actions supported margin recovery, working capital improvements, and stronger cash generation.

Speaker #1: The reset has also reinforced the importance of making better use of our existing assets and infrastructure. Insourcing selected production, improving planning tools, and reducing avoidable waste all helped to improve returns from the operating base we already have.

Speaker #1: There is still more to do. We will continue to optimize our space, our operating model, and our capability to support a more globally integrated and scalable business.

Speaker #1: I will now hand over to Mandy to provide additional detail around our financial performance. Thanks, Mandy.

Karl Gradon: Thanks, Mandy.

Speaker #2: Kia ora koutou. Good afternoon, everyone. I'll now take you through the financial performance in more detail, including key earnings drivers, cash generation, balance sheet position, and our approach to capital allocation.

Mandy Tomkins-Dancey: Kia ora koutou. Good afternoon, everyone. I will now take you through the financial performance in more detail, including key earnings drivers, cash generation, balance sheet position, and our approach to capital allocation. As Kyle has outlined, FY2026 was a year of significant financial reset and commercial rigor. The focus from a financial perspective was to restore profitability, improve cash conversion, reduce debt, complete the refinancing, and ensure the business entered FY2027 with materially stronger financial foundations. Importantly, as we look at the quality of earnings improvement, this result reflects a combination of underlying operational improvement and addresses to some legacy issues that affected FY2025. I will talk specifically to underlying performance improvement, including the gross margin shift and contribution from North America. FY2026 marked a return to operating profitability, with operating profit before financing cost improving by NZD 43 million, compared with FY2025.

Speaker #2: As Carl has outlined, FY26 was a year of significant financial reset and commercial rigor. The focus from a financial perspective was to restore profitability, improve cash conversion, reduce debt, complete the refinancing, and ensure the business entered FY27 with materially stronger financial foundations.

Speaker #2: Importantly, as we look at the quality of earnings improvement, this results from a combination of underlying operational improvement and addressing some legacy issues that affected FY25.

Speaker #2: I'll talk specifically about the underlying performance improvement, including the gross margin shift and the contribution from North America. FY26 marked a return to operating profitability, with operating profit before financing costs improving by $43 million compared with FY25.

Speaker #2: Revenue increased to $213 million, supported by strong North American growth and improved market diversification. Importantly, revenue growth translated into improved profitability through stronger manufacturing utilization, improved overhead absorption, and continued cost discipline.

Mandy Tomkins-Dancey: Revenue increased to NZD 213 million, supported by strong North American growth and improved market diversification. Importantly, revenue growth translated into improved profitability through stronger manufacturing utilization, improved overhead absorption, and continued cost discipline. Gross margin recovered materially during the year. Part of this year-on-year movement reflects the impact of significant inventory-related provisions recorded in the FY2025. Normalizing for those provisions, FY2025 gross margin would have been 50.8%, compared to 53.9% in FY2026. This demonstrates a genuine underlying improvement driven by manufacturing efficiencies, improved inventory utilization, and better procurement outcomes. Our medium-term expectation is that gross margin will stabilize in line with honey cost stabilization. The significance of this result is not simply that profitability has returned. It demonstrates that the business is now generating earnings from its core operations, supported by a disciplined execution and a stronger operating model. This slide shows how profitability was restored during FY2026.

Speaker #2: Gross margin recovered materially during the year. Part of this year-on-year movement reflects the impact of significant inventory-related provisions recorded in FY25. Normalizing for those provisions, FY25 gross margin would have been 50.8%, compared to 53.9% in FY26.

Speaker #2: This demonstrates a genuine underlying improvement driven by manufacturing efficiencies, improved inventory utilization, and procurement outcomes. Our medium-term expectation is that gross margin will stabilize in line with honey cost stabilization.

Speaker #2: The significance of this result is not simply that profitability has returned. It demonstrates that the business is now generating earnings from its core operations, supported by disciplined execution and a stronger operating model.

Speaker #2: This slide shows how profitability was restored during FY26. There were three important drivers: revenue growth, particularly in North America; stronger margins through manufacturing and supply chain efficiencies; and ongoing cost management across the business.

Speaker #2: The increase in volume improved our factory utilization, overhead recovery, while inventory optimization initiatives, disciplined procurement, stronger apiary performance, and improved raw honey utilization all contributed to margin improvement.

Mandy Tomkins-Dancey: There were three important drivers. These were revenue growth, particularly in North America, stronger margins through manufacturing and supply chain efficiencies, and ongoing cost management across the business. The increase in volume improved our factory utilization and overhead recovery while inventory optimization initiatives, disciplined procurement, stronger apiary performance, and improved raw honey utilization all contributed to margin improvement. The year-on-year comparison also benefited from lower depreciation of around NZD 3 million following asset write-offs in FY25 and from the use of lower cost honey procured in the prior year. Even allowing for these benefits, and despite higher freight costs and broader macroeconomic pressure, the result demonstrates that the business has made real progress in improving the quality and resilience of our gross margin. Accordingly, profitability was not driven by a single action.

Speaker #2: The year-on-year comparison also benefited from lower depreciation of around $3 million, following asset write-offs in FY25, and from the use of lower-cost honey procured in the prior year.

Speaker #2: Even allowing for these benefits, and despite higher freight costs and broader macroeconomic pressure, the result demonstrates that the business has made real progress in improving the quality and resilience of our gross margin.

Speaker #2: Importantly, profitability was not driven by a single action. It reflects multiple improvements across the business working together, including commercial performance, operational execution, and a more efficient operating cost base.

Speaker #2: Operating expenses were reduced by $8 million year-on-year, reflecting the cost-out actions that were taken. We will continue to assess business performance to ensure our cost base is appropriately sized and focused on initiatives that add value.

Mandy Tomkins-Dancey: It reflects multiple improvements across the business working together, including commercial performance, operational execution, and a more efficient operating cost base. Operating expenses reduced by NZD 8 million year-on-year, reflecting the cost-out actions that were taken. We will continue to assess business performance to ensure our cost base is appropriately sized and focused on initiatives that add value. While market conditions remain challenging in several regions, the business demonstrated that it can improve earnings through disciplined execution and strong operational performance. Earnings were above guidance with normalized EBIT of NZD 16.4 million versus guidance of NZD 15.5 million. Normalizations were also in line with guidance. One of the most important strategic shifts during FY26 was the continued diversification of Comvita's revenue base. While Greater China remains a key market, stronger growth in North America, Southeast Asia, and EMEA have reduced our reliance on any single geography and created a more balanced business.

Speaker #2: While market conditions remain challenging in several regions, the business demonstrated that it can improve earnings through disciplined execution and strong operational performance. Earnings were above guidance, with normalized EBIT of $16.4 million versus guidance of $15.5 million.

Speaker #2: Normalizations were also in line with guidance. One of the most important strategic shifts during FY26 was the continued diversification of Comvita's revenue base. While Greater China remains a key market, stronger growth in North America, Southeast Asia, and EMEA have reduced our reliance on any single geography.

Speaker #2: And created a more balanced business. The diversification is deliberate; it improves resilience, broadens our growth opportunities, and reduces our exposure to economic or competitive challenges in any one market, creating a stronger and more sustainable platform for long-term growth and shareholder value creation.

Speaker #2: Our focus now is on converting that momentum to a broad, diversified channel and customer base while maintaining our commercial rigor around margin and working capital.

Mandy Tomkins-Dancey: The diversification is deliberate. It improves resilience, broadens our growth opportunities, and reduces our exposure to economic or competitive challenges in any one market, creating a stronger and more sustainable platform for long-term growth and shareholder value creation. Our focus now is on converting that momentum to broad diversified channel and customer base while maintaining our commercial rigor around margin and working capital. One of the most significant achievements of FY26 was restoring cash generation through disciplined inventory management and improved operating performance. Our inventory reduced from NZD 89 million to NZD 79.9 million and is now back within our target operating range. This reflects increased sell-through, better inventory utilization, and stronger planning processes across the business. Our operating cash flow increased to NZD 40.3 million and our earnings to cash conversion improved materially. Our cash generation was not simply the result of selling down inventory.

Speaker #2: One of the most significant achievements of FY26 was restoring cash generation through disciplined inventory management and improved operating performance. Our inventory reduced from $79.9 million and is now back within our target operating range.

Speaker #2: This reflects increased sell-through, better inventory utilization, and stronger planning processes across the business. Our operating cash flow increased to $40.3 million, and our earnings-to-cash conversion improved materially.

Speaker #2: Our cash generation was not simply the result of selling down inventory. Inventory normalization was a significant contributor, but we also benefited from improved earnings and better alignment between production inventory and customer demand.

Speaker #2: The working capital reset is now substantially complete. Going forward, our focus is on maintaining this discipline while continuing to support growth opportunities and supply resilience to increasingly drive cash generation.

Mandy Tomkins-Dancey: Inventory normalization was a significant contributor, but we also saw benefit of improved earnings and better alignment between production, inventory, and customer demand. The working capital reset is now substantially complete. Going forward, our focus is maintaining this discipline while continuing to support growth opportunities and supply resilience to increasingly drive cash generation. This represents a significant change in the company's financial position in a relatively short period. Refinancing was completed during the year, providing appropriate liquidity, covenant headroom and flexibility through to September 2028. This gives the business the capacity to execute against its strategy. Focus now is to preserve that flexibility while selectively investing in growth opportunities that support long-term value creation. With the balance sheet reset, the discussion shifts from repairing the business to how capital will be allocated going forward. Our first priority remains financial discipline.

Speaker #2: This represents a significant change in the company's financial position in a relatively short period. Refinancing was completed during the year, providing appropriate liquidity, government headroom, and fixed flexibility through to September 2028.

Speaker #2: This gives the business the capacity to execute against its strategy. The focus now is to preserve that flexibility while selectively investing in growth opportunities that support long-term value creation.

Speaker #2: With the balance sheet reset, the discussion shifts from repairing the business to how capital will be allocated going forward. Our first priority remains financial discipline.

Speaker #2: Maintaining appropriate liquidity and preserving flexibility remain important, particularly given the volatility that can exist within agricultural supply chains and global consumer markets. Our second priority is targeted investment in areas that strengthen competitive advantage, including honey supply, brand, science, innovation, and digital capability.

Mandy Tomkins-Dancey: Maintaining appropriate liquidity and preserving flexibility remain important, particularly given the volatility that can exist within agricultural supply chains and global consumer markets. Our second priority is targeted investment in the areas that strengthen competitive advantage, including honey supply, brand, science, innovation, and digital capability. Finally, we remain focused on improving returns from existing assets and driving greater operating efficiency throughout the business. Over time, as earnings, cash generation, and balance sheet metrics continue to strengthen, we remain committed to returning capital to shareholders through a sustainable dividend while ensuring that capital allocation remains appropriate to the opportunities and risks facing the business. Today, our priority remains balancing financial resilience, growth investment, and long-term shareholder returns. I will now hand back to Kyle to provide comments on our FY27 outlook.

Speaker #2: Finally, we remain focused on improving returns from existing assets and driving greater operating efficiency throughout the business. Over time, as earnings, cash generation, and balance sheet metrics continue to strengthen, we remain committed to returning capital to shareholders through a sustainable dividend, while ensuring that capital allocation remains appropriate to the opportunities and risks facing the business.

Speaker #2: Today, our priority remains balancing financial resilience, growth investment, and long-term shareholder returns. I'll now hand back to Carl to provide comments on our FY27 outlook.

Speaker #1: Thanks, Mandy. As we look to FY27, our stance remains confident but pragmatic. The business is materially stronger than it was a year ago. But disciplined execution remains the priority.

Speaker #1: We have made good progress. The business has been stabilized, the balance sheet has been repaired, and the leadership team is in place. We are clear about the issues, clear about our priorities, and better positioned to execute.

Karl Gradon: Thanks, Mandy. As we look to FY27, our stance remains confident but pragmatic. The business is materially stronger than it was a year ago, but disciplined execution remains the priority. We have made good progress. The business has been stabilized, the balance sheet has been repaired, and the leadership team is in place. We are clear about the issues, clear about our priorities, and better positioned to execute, but there is still significant work ahead. FY27 will be another demanding year with its own challenges across consumer demand, competitive intensity, and geopolitical uncertainty. The honey harvest variability will continue, and we will need to keep improving our operating model. The opportunity remains significant, but our focus is on continuing to improve operational performance and returns while pursuing targeted growth opportunities with discipline. FY27 presents both opportunities and challenges. The opportunities are clear.

Speaker #1: But there is still significant work ahead. FY27 will be another demanding year, with its own challenges across consumer demand, competitive intensity, and geopolitical uncertainty.

Speaker #1: The honey harvest variability will continue, and we will need to keep improving our operating model. The opportunity remains significant, but our focus is on continuing to improve operational performance and returns.

Speaker #1: While pursuing targeted growth opportunities with discipline, FY27 presents both opportunities and challenges. The opportunities are clear: further expansion in strategic markets and channels, a stronger innovation pipeline, and the ability to invest more deliberately in brand, science, digital, and supply capability are important.

Speaker #1: This must happen at the same time as we tightly control our controllables, which are primarily our costs. The risks are also clear. Geopolitical disruption could affect freight, fuel, and supply chains.

Karl Gradon: Further expansion in strategic markets and channels, a stronger innovation pipeline, and the ability to invest more deliberately in brand, science, digital, and supply capability are important. This must happen at the same time as we tightly control our controllables, which are primarily our costs. The risks are also clear. Geopolitical disruption could affect freight, fuel, and supply chains. Consumer sentiment remains uncertain, particularly in China. The honey harvest outcomes can vary, and competitive intensity remains high across the category. Our approach is to manage these risks closely while continuing to move the business forward. We are not assuming that the environment will get easier. We are building a business that can perform with more resilience and discipline through that environment. We will focus on the US and other strategic markets and channels where we see the strongest opportunity for growth. Our priorities are clear and deliberately few and focused.

Speaker #1: Consumer sentiment remains uncertain, particularly in China. The honey harvest outcomes can vary, and competitive intensity remains high across the category. Our approach is to manage these risks closely while continuing to move the business forward.

Speaker #1: We are not assuming that the environment will get easier. We are building a business that can perform with more resilience and discipline through that environment.

Speaker #1: We will focus on the US and other strategic markets and channels where we see the strongest opportunity for growth. Our priorities are clear, deliberately few, and focused.

Speaker #1: We will strengthen the brand because brand relevance and differentiation are critical in a more competitive category. We will drive category growth through product innovation and science, with a focus on fewer, higher-quality opportunities.

Speaker #1: As the category supply and demand continues to rebalance, we believe trusted brands—which we are—with strong supply access, which we have, and genuine differentiation and disciplined execution, will be best positioned to succeed.

Karl Gradon: We will strengthen the brand because brand relevance and differentiation are critical in a more competitive category. We will drive category growth through product innovation and science with a focus on fewer, higher quality opportunities. As the category supply and demand continues to rebalance, we believe trusted brands, which we are, with strong supply access, which we have, and genuine differentiation and disciplined execution will be the best position to succeed. We will remain disciplined in our approach to capital allocation, sharpening and optimization of our footprint while continuing to improve our operating model capability and cost base. Some of that focus will take investment and the benefits will take time to flow through. Our focus is now disciplined execution and creating long-term shareholder value. Comvita has a trusted global brand, deep science capability, high-quality supply, and increasingly diversified market footprint with a strengthened leadership team.

Speaker #1: We will remain disciplined in our approach to capital allocation, sharpening and optimizing our footprint while continuing to improve our operating model, capability, and cost base.

Speaker #1: Some of that focus will take investment, and the benefits will take time to flow through. Our focus is now disciplined execution and creating long-term shareholder value.

Speaker #1: Comvita has a trusted global brand, deep science capability, high-quality supply, and an increasingly diversified market footprint with a strengthened leadership team. We are the industry leader.

Speaker #1: With the foundations now substantially rebuilt, our focus turns to disciplined growth, targeted investment, and creating substantial, sustainable, long-term shareholder value. We will now pause and take any questions, which can be submitted through the portal provided. Please click 'Ask a Question' to send in your questions.

Karl Gradon: We are the industry leader. With the foundations now substantially rebuilt, our focus turns to disciplined growth, targeted investment, and creating sustainable long-term shareholder value. We will now pause and take any questions which can be submitted through the portal provided. Please click Ask a Question to send in your questions. As we wait for these to be received, I would like to again thank our board members, leadership team, and the wider Comvita global team for their ongoing efforts in helping position Comvita for a far more successful future. If we do run out of time, we will provide a response to you after the presentation. Thank you.

Speaker #1: As we wait for these to be received, I'd like to again thank our board members, leadership team, and the wider Comvita global team for their ongoing efforts in helping position Comvita for a far more successful future.

Speaker #1: If we do run out of time, we'll provide a response to you after the presentation. Thank you.

Speaker #2: Thanks, Carl. First question: normalized EBIT is stated to be $16.4 million, and operating profit is $14.0 million. Could you please outline the normalizations applied to EBIT and EBITDA?

Speaker #3: The normalizations are—apologies, just one moment. The normalizations are in line with our previous guidance, and those include transaction costs associated with the failed SAA of approximately $1.4 million, in addition to transaction costs of approximately $1.9 million.

Mandy Tomkins-Dancey: Thanks, Kyle. First question is, normalized EBIT stated to be NZD 16.4 million and operating profit of NZD 14.0 million. Could you please outline normalizations applied to EBIT and EBITDA? The normalizations are. Just one moment. The normalizations are in line with our previous guidance, and those include transaction costs associated with the failed SAA of approximately NZD 1.4 million, in addition to transaction costs of approximately NZD 1.9 million. These are also outlined for you in the investor presentation at slide 18.

Speaker #3: And these are also outlined for you in the investor presentation at slide 18.

Speaker #2: Thanks, Mandy. The next question: growth margins are high, but net returns are low. What plans do you have to reduce overheads?

Speaker #1: We have a continued focus on our entire cost structure, from our APIs right the way through to the way that our product ends up in market.

Speaker #1: We have continued to focus our attention on all parts of that value chain, and over the coming months, we will continue to hone and prioritize our resource allocation.

[Company Representative] (Comvita): Thanks, Mandy. The next question. Gross margins are high, but net returns low. What plans do you have to reduce overheads?

Speaker #1: As we looked for the reduction of overhead costs, we will continue to look at every possible attribute out there. We have recently undertaken some structural reviews and changes to the business, which have resulted in a reduction in headcount, and we expect that over time we will continue to optimize our channel strategy going forward.

Karl Gradon: We have a continued focus on our entire cost structure from our apiaries right the way through to the way that our product ends up in market. We have continued to focus our attention to all parts of that value chain, and over the coming months, we will continue to hone and prioritize our resource allocation. As we look for the reduction of overhead costs, we will continue to look at every possible attribute that is out there. We have recently undertaken some structural reviews and changes to the business, which have resulted in a reduction in headcount, and we expect that over time, we will continue to optimize our channel strategy going forwards.

Speaker #2: Thanks, Carl. Next question. North America sales increased from $28.7 million to $58.7 million—how? The contribution margins declined from 14.1% to 6.6%, potentially due to a product mix change.

Speaker #2: Should we expect North American contribution margins to improve from current levels?

[Company Representative] (Comvita): Thanks, Kyle. Next question. North America sales increased from NZD 28.7 million to NZD 58.7 million. However, contribution margins declined from 14.1% to 6.6%, potentially due to product mix change. Should we expect North American contribution margins to improve from current levels?

Speaker #1: Over time, we certainly should be expecting to see that. We have a great partnership in place with our retail partners in North America, and as we have optimized our procurement and inventory levels, we expect this to normalize.

Speaker #1: What has been a good outcome this year is that the operational efficiencies gained through those volumes have benefited the wider business, not just the North American business.

Speaker #1: So, we've seen several advantages in that particular sales channel, well beyond that channel itself, as well as the fact that we've actually seen a significant uplift in the penetration of manuka and the understanding of the benefits of manuka at the consumer level that have come as a result of this channel growth.

Karl Gradon: Well, over time, we certainly should be expecting to see that. We have a great partnership in place with our retail partners in North America, and as we have optimized our procurement and inventory levels, we expect this to normalize. What has been a good outcome this year is that the operational efficiencies gained through those volumes have benefited the wider business, not just the North American business. So we are seeing several advantages in that particular sales channel well beyond that channel itself, as well as the fact that we have actually seen a significant uplift in the penetration of Manuka and the understanding of the benefits of Manuka at the consumer level that have come as a result of this channel growth. So we see it as a very strategic and important part to our portfolio today.

Speaker #1: So, we see it as a very strategic and important part of our portfolio today.

Speaker #2: Thanks, Carl. Next question. Congratulations to you all—this is an impressive improvement in the business. My question: Revenues in North America were strong, although margins were weak.

Speaker #2: To what extent were you discounting or selling lower quality honey to reduce your company inventories to target levels? Was the average quality of honey sold in North America significantly lower?

[Company Representative] (Comvita): Thanks, Kyle. The next question. Congratulations to you all. That is an impressive improvement in the business. Question, revenues in North America were strong, although margins weak. To what extent were you discounting or selling lower quality honey to reduce your company inventories to target levels? Was the North America average quality of honey sold significantly lower in North America? Should we expect reduced sales in 2027 given this?

Speaker #2: Should we expect reduced sales in 2027, given this?

Speaker #1: Thank you, firstly, for the congratulations. The team has worked extremely hard, and we're all very proud of the outcome. The North American volumes were strong, and it's something which has permeated the entire business.

Speaker #1: The inventories have been reset, as you noted, and we're now down to our target levels, which means that we're now able to replenish our stocks at the ongoing prevailing market prices. This gives us a competitive advantage compared to where we were this time last year.

Karl Gradon: Thank you firstly for the congratulations. The team has worked extremely hard, and we are all very proud of the outcome. The North American volumes were strong, and it is something which has permeated the entire business. The inventories have been reset, as you noted, and we are now down to our target levels, which means that we are now able to replenish our stocks at the ongoing prevailing market prices, which gives us a competitive advantage compared to where we were this time last year. The quality of the honey is not low grade. It is a very good quality product, which we supply to a very good quality consumer base. As a result of that, we would expect that the volume will continue to prevail into the 2027 year, and we have already received strong purchase orders for that.

Speaker #1: The quality of the honey is not low grade. It is a very good quality product, which we supply to a very high-quality consumer base.

Speaker #1: And as a result of that, we would expect that the volume will continue to prevail into the 2027 year, and we've already received strong purchase orders for that.

Speaker #2: Thanks, Carl. Next question: What was the cost of the capital raise?

Speaker #3: Our issue expenses associated with the capital raise were $3.42 million. You'll see those recognized against equity for the capital raise within our financial statements.

Speaker #3: In addition to that, failed SAA costs of $1.4 million were recorded in operating expenses and separately disclosed.

[Company Representative] (Comvita): Thanks, Kyle. Next question. What was the cost of the capital raise?

Mandy Tomkins-Dancey: Our issue expenses associated with the capital raise were NZD 3.42 million. You will see those recognized against equity for the capital raise within our financial statements. In addition to that, failed SAA costs of NZD 1.4 million were recorded in operating expenses and separately disclosed.

Speaker #2: Thanks, Mandy. Next question: When do you hope to provide a dividend? Do you plan for a dividend in 2027?

Speaker #1: Dividends will be returned to shareholders when earnings, cash generation, and balance sheet metrics support a sustainable dividend. The emphasis there is on 'sustainable,' and our board will continue to review its dividend policy as that evolves.

[Company Representative] (Comvita): Thanks, Mandy. Next question. When do you hope to provide a dividend, i.e., do you pay a dividend in 2027?

Speaker #2: Thanks, Carl. Next question. The outlook section is all motherhood and apple pie. Do you have any actual guidance?

Karl Gradon: Dividends will be returned when earnings, cash generation, and balance sheet metrics support a sustainable dividend. The emphasis there is being on sustainable, and our board will continue to review its dividend policy as that evolves.

Speaker #1: We have a very early stage of the year which is traditionally we're currently at a very early stages of the year. These are the lowest two sales months as a result.

[Company Representative] (Comvita): Thanks, Kyle. Next question. The outlook section is all motherhood and apple pie. Do you have actual guidance?

Speaker #1: We're not giving guidance today. We'll look to provide further guidance as the apris crop and the sales channels evolve, and as we enter the important months of November and onwards.

Karl Gradon: We are at a very early stage of the year, which is traditionally. We are currently at a very early stage of the year. These are the lowest two sales months. As a result, we are not giving guidance today. We will look to provide further guidance as the apiary crop and the sales channels evolve in the important months of both November and onwards. Once we have that certainty, we will be providing guidance to the marketplace.

Speaker #1: So once we have that certainty, we'll be providing guidance to the marketplace.

Speaker #2: Thanks, Carl. Many in the industry have fallen by the wayside. Do you have strategies to take advantage?

Speaker #1: I think that the industry today has really suffered some challenging times and it points to the strength of having a good brand and a great distribution channel, supported by a great team.

Speaker #1: We also now have a great balance sheet, so we have the resources and the capability to take advantage of that situation should the opportunity prevail.

[Company Representative] (Comvita): Thanks, Kyle. Many in the industry have fallen by the wayside. Do you have strategies to take advantage?

Speaker #1: But right now, our business needs to continue to get focused on exactly what we need to deliver that's within our control. If there is something where we could play a part in that greater industry outcome, then we will do that.

Karl Gradon: I think that the industry today has really suffered some challenging times, and points to the strength of having a good brand and a great distribution channel and supported by a great team. We also now have a great balance sheet. We have the resources and the capability now to take advantage of that situation, should the opportunity prevail. But right now, our business needs to continue to get focused on exactly what we need to deliver that is within our control. If there is something that we could play a part of that greater industry outcome, then we will do that. But right now, we have got a business that we are focused on making world-class.

Speaker #1: But right now, we've got a business that we're focused on making world-class.

Speaker #2: Thanks, Carl. Has Comvita discontinued the issuance of financial statements as a separate document for fiscal full and half years, and if so, why?

Speaker #3: For this reporting year, for FY26, we were able to disclose all of our financial statements and our annual report at once. We are really proud of this accomplishment.

[Company Representative] (Comvita): Thanks, Kyle. Has Comvita discontinued the issuance of financial statements as a separate document for fiscal full and half years, and if so, why? For this reporting year, for FY26, we were able to disclose all of our financial statements, and our annual report at once. We are really proud of this accomplishment. We feel that it gives our shareholders greater visibility and transparency, and if we are able to, we will continue to do so. Thanks, Mandy. Next question. Is the UMF29+ Manuka product shown on the cover of the investor presentation Comvita's most expensive retail Manuka product?

Speaker #3: We feel that it gives our shareholders greater visibility and transparency. And if we're able to, we'll continue to do so.

Speaker #2: Thanks, Mandy. Next question: Is the UMF 29+ Manuka product shown on the cover of the Investor Presentation Comvita's most expensive retail Manuka product?

Speaker #1: Simu, your address and I’ll send one to you, if you’re willing to step forward. It’s a great product, and yes, it is our most expensive product today.

Speaker #1: But we're always looking at ways that we can stretch the premiumization of this brand as category leader.

Speaker #2: Thanks, Carl. Has Comvita shelved earlier announced plans to exit the Medibee Apris joint venture with Hive & Wellness Australia Limited, and if so, why?

Karl Gradon: Send me your address and I will send one to you if you are willing to step forward. It is a great product, and yes, it is our most expensive product today. But we are always looking at ways that we can stretch the premiumisation of this brand as category leader.

Speaker #1: Like every commercial consideration, it's a matter of timing, and while this is still our intent, it is going to come down to simply a matter of timing.

[Company Representative] (Comvita): Thanks, Kyle. Has Comvita shelved earlier announced plans to exit the Medibee Apiaries joint venture with Hive + Wellness Australia Limited, and if so, why?

Speaker #2: Thanks, Carl. When are you likely to provide an update on any opportunities and earnings guidance for future years?

Karl Gradon: Like every commercial consideration, it is a matter of timing. While this is still our intent, it is going to come down to simply a matter of timing.

Speaker #1: Our leadership team is actually traveling to Singapore next month. We've already had a visit to the Singaporean, Malaysian, and Thai markets to work alongside them to explore opportunities, and they have been exciting.

[Company Representative] (Comvita): Thanks, Kyle. When are you likely to provide an update on F&N opportunities and earnings guidance for future years?

Speaker #1: The focus has largely been around distribution, supply chain, and innovation that are mutually beneficial to both sides. And we will continue to provide updates as they come to fruition.

Karl Gradon: Our leadership team is actually traveling to Singapore next month. We have already had a visit to the Singaporean, Malaysian, and Thai markets to work alongside them to explore opportunities, and they have been exciting. The focus has largely been around distribution, supply chain, and innovation that are mutually beneficial for both sides, and we will continue to provide updates as they come to fruition. So expect to see more in our upcoming updates around how we are progressing there. Once again, we will be providing guidance once we actually have greater detail as to the year ahead and the traction we have already achieved.

Speaker #1: So, expect to see more in our upcoming updates around how we're progressing there, and once again, we will be providing guidance once we actually have greater detail as to the year ahead and the traction we've already achieved.

Speaker #2: Thanks, Carl. Can you provide your thoughts on the New Zealand-India free trade agreement in relation to Comvita's opportunities?

Speaker #1: Any ability to take our great product to a great country is one that we'll embrace and explore. With the limitations that come with any quota system, as well as a staged lowering of those tariff rates, we need to execute with caution.

[Company Representative] (Comvita): Thanks, Kyle. Can you provide your thoughts on the New Zealand-India Free Trade Agreement in relation to Comvita's opportunities?

Speaker #1: And ensure that once we get into the market, if we decide to go in there, that we will have sustainable access to that quota.

Speaker #1: Without that sustainable access, it would become a challenge. So, we've got many considerations. We are very focused on making disciplined capital allocations, which includes the markets that we will be entering, and India is no exception.

Karl Gradon: Any ability to take our great products to a great country is one that we will embrace and explore. With the limitations that come with any quota system, as well as a staged lowering of those tariff rates, we need to execute with caution and ensure that once we get into the market, if we decide to go in there, that we will have sustainable access to that quota. Without that sustainable access, it will become a challenge. So we have many considerations. We are very focused on making disciplined capital allocations that includes to the markets that we will be entering, and India is no exception. So we will consider it, look at the hurdles, the sustainability of that approach, and enter it if our shareholders will benefit from that entry.

Speaker #1: So, we will consider it, look at the hurdles, the sustainability of that approach, and enter it if our shareholders will benefit from that entry.

Speaker #2: Thanks, Carl. Next question: How are the expected benefits of a plantation strategy impacting the business currently—quality, volumes, harvest costs, etc.?

Speaker #1: As I explained earlier, this is the moment when we have stabilization in our prices of honey and our procurement. This is the moment where Apis business really comes into its own, and we're very proud of the work that the team did last year.

[Company Representative] (Comvita): Thanks, Kyle. Next question. How are the expected benefits of a plantation strategy impacting the business currently? Quality, volumes, harvest costs, et cetera.

Speaker #1: They had a great season, especially when benchmarked against their peers. The actual forests themselves have performed very well, especially those which fall within the white upper region.

Karl Gradon: As I explained earlier, this is the moment when we have a stabilization in our prices of honey and our procurement. This is the moment where apiary business really comes into its own, and we're very proud of the work that the team did last year. They had a great season, especially when benchmarked against their peers. The actual forests themselves have performed very well, especially those which fall within the Wairarapa region. Currently, we're just working along to make sure that we have the right facilities set up, the right management of those forests, and the right connection all the way through to the end consumer so that we can maximize the benefits there. Now, in saying that, these plantations set us up long term for our carbon, for our sustainability commitments, and all of the other attributes of biodiversity that come with it.

Speaker #1: And currently, we're just working along to make sure that we have the right facilities set up, the right management of those forests, and the right connection all the way through to the end consumer.

Speaker #1: So that we can maximize the benefits there. Now, in saying that, these plantations set us up long-term for our carbon, for our sustainability commitments, and all of the other attributes of biodiversity that come with it.

Speaker #1: We're very proud as well to have seen and published the paper this year that spoke to the biodiversity improvements on those plantations, over and above the monoculture that would have otherwise been there from pine forests or other things like that, which should have been converted into a different forest type.

Speaker #1: So they play a very important role across the entire spectrum of our brand, and our company ethos and values.

Karl Gradon: We're very proud as well to have seen and published the paper this year that spoken to the biodiversity improvements on those plantations over and above the monoculture, that would have been otherwise there from pine forests or other things like that should it have been converted into a different forest type. So they play a very important role across the entire spectrum of our brand and our company ethos and values.

Speaker #2: Thanks, Carl. Greater China contribution margins have declined to 14%. Given the continued commentary around pricing pressure, what needs to happen for margins to improve to previous levels?

Speaker #1: Our focus is on taking the Manuka honey product in various forms, formats, innovation types, and moments of occasion to consume this product. So we're looking at various different ways at the product level.

[Company Representative] (Comvita): Thanks, Karl. Greater China contribution margins have declined to 14%. Given the continued commentary around pricing pressure, what needs to happen for margins to improve to previous levels?

Speaker #1: Now, while of course looking at the channel management strategy to ensure we've got the right resources in the right place, focused on the best commercial outcomes for the ever-changing environment.

Karl Gradon: Our focus is on taking the Manuka honey product in various forms, formats, innovation types, moments of occasion to consume this product. So we are looking at various different ways at the product level, while, of course, looking at the channel management strategy to ensure we have got the right resources in the right place, focused on the best commercial outcomes for the ever-changing environments. It is not just China that is changing. Everywhere in the world is changing, so we need to adapt accordingly. Our business model may look very different in a few years, whether it is China, Singapore, New Zealand, or USA. We will evolve as the consumer trends evolve.

Speaker #1: It's not just China that's changing; the entire world is changing. So, we need to adapt accordingly. Our business model may look very different in a few years, whether it's in China, Singapore, New Zealand, or the USA.

Speaker #1: We will evolve as consumer trends evolve.

Speaker #2: Thanks, Carl. Can you update the status and opportunity for the Derma Medi Honey supply contract?

Speaker #1: The Derma Sciences/Integra relationship we won is one we value. They have indicated that the supply is to be continued this year. We're just awaiting the exact timing for that.

[Company Representative] (Comvita): Thanks, Karl. Can you update the status and opportunity for the Derma Medihoney supply contract?

Speaker #1: It's a relationship that we truly value.

Speaker #2: Thanks, Carl. That's it. No more questions.

Karl Gradon: The Derma Sciences/Integra relationship is one we value. They have indicated that the supply is to be continued this year. We just are waiting on the exact timing for that. It is a relationship that we truly value.

Speaker #1: Thank you, Susan. I'll give it 30 to 10 seconds to see if anyone else poses another question. Otherwise, we will take the opportunity to thank you all.

[Company Representative] (Comvita): Thanks, Karl. That is it. No more questions.

Karl Gradon: Thank you, Susan. I'll give it 10 seconds to see if anyone else poses another question. Otherwise, we will take the opportunity to thank you all. Thank you to every shareholder that's placed their trust in our business and our team. And thank you once again to everyone involved in leading this business forward. Ka kite anō.

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