Comvita sale to Manuka honey peer Florenz falls through

Core Viewpoint - The proposed takeover of Comvita by rival Florenz has failed due to insufficient shareholder votes, leading both companies to mutually terminate the deal [1] Company Situation - Comvita's board is exploring alternative options, including a recapitalization process, following the failed takeover [2] - The company has faced significant challenges in recent years, including sector pressures, market conditions, and a complex turnaround [3] - Structural changes in the Manuka honey sector have resulted in oversupply, price volatility, and intense competition [3] Financial Performance - Comvita reported a net debt of NZ$67.4 million (approximately $38.2 million) and an EBIT profit of NZ$0.7 million for the first quarter of fiscal 2026, which was better than the anticipated NZ$1.7 million loss [3] - Revenue for the first quarter was NZ$45.6 million, exceeding both Comvita's estimate of NZ$43.8 million and the NZ$42.3 million from the previous year [4] - The forecast for full-year EBIT is NZ$13.5 million [4] Recapitalization Efforts - The board is actively working with advisers and banking partners to evaluate funding options as part of contingency planning [4] - The intention is to assess options for recapitalizing the company to stabilize the business and reduce risks to shareholders [5] - Comvita reported a full-year fiscal 2025 net profit loss of NZ$104.8 million, widening from a NZ$80.4 million loss the previous year, with revenue dropping 4% to NZ$192.5 million [6]