Bay of Plenty honey producer Comvita is entering a period of significant restructuring after failing to secure shareholder support for a refinancing proposal from investor Florenz.
Comvita honey production
Despite strong backing from Comvita chief executive Karl Gradon, the vote last month did not pass, leaving the company to pursue alternative recapitalisation options.
Before the vote, Gradon told The News Comvita had long been woven into the Bay of Plenty community, and that emotive connection made the reality of restructuring even harder.
“And that brings us to reality – the company must face up to significant financial restructuring. We need to act.”
In the wake of the decision, Comvita has moved quickly to strengthen its leadership team.
Mandy Tomkins‑Dancey has been appointed permanent chief financial officer, alongside Ben Duncan as chief operating officer and Nikki Leske as chief people and culture officer.
The company says these appointments provide a solid base for its ongoing reset.
The board has advised the New Zealand Stock Exchange that Comvita continues to trade modestly ahead of budget and remains confident of returning to profitability in the 2026 financial year, subject to successful trading execution and market conditions.
Earnings are expected to be weighted toward major sales events in the coming quarters.
Gradon acknowledges the challenges facing the business, noting that the mānuka honey sector has been under extreme pressure from oversupply, a key factor in Comvita’s current position.
“We’ve got to acknowledge there’s no sugar coating this,” he says.
Comvita has tightened inventory management, reducing holdings to below $85 million at the end of October 2025, down from $135.8 million a year earlier.
At the same time, the company is accelerating its global innovation programme, with new launches in digestive health, eyecare, immunity, and premium gifting ranges supporting diversification in core markets.
The board says constructive talks with banking partners are continuing, with further shareholder updates to follow as recapitalisation options are confirmed.
Comvita honey production
Breaking News
14 November 4pm
Comvita shareholders have rejected an offer by Florenz of 80c a share – which had been strongly supported by Comvita’s leadership.
The News understands shareholders were told the deal was unlikely to proceed after the vote in Auckland today.
More to come …..
12 November 2025
Honey giant faces urgent need to rally shareholders, reports David Porter
Comvita at Auckland Airport
Troubled Bay of Plenty-headquartered honey producer Comvita faces a crucial vote from shareholders this week.
Long seen as one of New Zealand’s best-regarded companies, Comvita has suffered in recent years as a result of struggles in the manuka honey industry.
“The company means so much to so many people in the region that they have this emotic connection,” chief executive Karl Gradon told The News.
Karl Gradon
“And that brings us to reality we must face – the company must face up to significant financial restructuring. We need to act.”
At the end of this week (Friday 14 November) Comvita shareholders have to vote on an offer by shareholder Florenz, which is strongly supported by Comvita’s leadership.
Florenz, a unit of Christchurch-based Masthead, is offering 80 cents a share via a scheme of arrangement valuing the company at NZ$56 million. The offer is marginally above Comvita’s current stock price.
Comvita recorded a loss of $NZ104.8 million most recently, a decline from the previous year’s loss of $NZ77.4 million.
“Our team is great and [the company’s] been here for years – and I guess that is what makes the situation so complex,” he said.
“What has been tabled by Florenz presents us with an executable, fundable solution that actually allows us to stay in business.”
Gradon says that to him the current financial situation is the backdrop to the problems facing the company.
“Weve go to to acknowlege there’s no sugar coating this,” he said.
Gradon acknowledged the company had faced some difficult years and was currently facing a critical situation, noting that some of Comvita’s peer companies had not survived.
He says a key reason the company has found itself in its current position was because the manuka honey sector, specifically, has been under extreme pressure because of an over-supply of product.
He says there has also been a redefinition of what exactly what constitutes manuka honey, as well as the market changing and overall costs rising over the period.
“We’ve faced some hard years,” he says. “Comvita faces a critical situation.”
He notes that peer companies also faced difficulties , and that some had not survived.
“Although there are potential green shoots, execution risks remain,” he said.
“We have a desire and a need to grow and that will require significant investment. If we want to compete globally, then that probably exceeds our current balance sheet capacity.”
Gradon said that if the Florenz offer was accepted by shareholders, the company still faced significant risks.
“Our banking waivers expire on 31 December and we’re meant to be paying down debt to the extent of $NZ59 million dollars in early 2026,” he said.
“While we’re having positive discussions with the banks, they certainly haven’t made any commitments.
“For our brand to remain strong, we really need to make sure we can maintain certainty.
“Businesses survive on certainty, and we don’t have that and we don’t have the financial resilience today to grow again. Or to even find the turnaround, without some form of refunding and recapitalisation,” said Gradon.
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