A staggering $NZ105million after tax loss for the latest financial year will see NZ’s leading manuka honey brand, Comvita, sold to a new owner.
News of the deal emerged late in August just a week before Comvita’s official annual results were announced to the New Zealand Stock Exchange (NZSX).
Comvita’s demise as a publicly listed company was effectively sealed by the latest loss, which comes on the back of similar large losses last year.
Despite being the number one manuka honey brand in China, and New Zealand’s largest honey producer, Comvita appears to have spent large sums on dubious investments over the years.
Its latest results included an $NZ80 million+ write-down in the value of those investments, and a big write-down on the value of its manuka honey stocks.
But even after the write down, Comvita appears to still be sitting on some $NZ89million in manuka honey stocks.
So with the sale price of $56NZmillion, the new owner, NZ rich-lister Mark Stewart will effectively get Comvita’s honey stocks at a 40% discount.
Stewart reportedly plans to roll Comvita into a new subsidiary of his families main corporate vehicle - Mastheads Limited.
Known as Florenz, the new subsidiary was set-up last year, following Masthead’s purchase of leading US manuka honey retailer – Wedderspoon.
Comvita’s woes are not particularly news, of course, as the glut of NZ manuka honey produced in recent years has seen a number of NZ manuka honey businesses reporting losses and financial difficulties.
Manuka Health New Zealand Limited, for example, was sold off to S E Asian Chinese interests some years back but last year reported a significant decline in its fortunes.
In its interim report for 2024/25, the Hong Kong stock exchange listed Guoco Group Limited, reported turnover for its manuka honey business had dropped nearly $US5million compared to the previous year. (Down to $US30.2million)
And in its latest annual financial results, the company’s directors reported an $HK18.3 million write-down in the value of its investment in NZ Manuka Health, and an $HK82.3 million write off of goodwill.
More recently, King Honey Limited, was put into liquidation and its owners, Me Today, wrote off the entirety of the $NZ36million it paid for the company just 2 years previously.
(King honey’s honey Superlife manuka and Bee+ manuka products are however, still being sold through online channels like Amazon.)
Maori owned Ora honey appears to have also abandoned its Manuka honey business and last month Settlers honey had receivers appointed by the Bank of New Zealand.
Press reports suggest that Settlers, with 20,000 plus hives and annual production of more than 450 tonnes of manuka honey is unable to pay back its bank debts.