The net loss for the year included $10.8 million in one-time items and non-operating expenses after taxes.

The lower sales and resulting higher finished goods inventory had a negative impact on intra-group profit and EBITDA, resulting in a decrease of $5.5 million.

Net debt ended the year at $79.7 million and inventory at $138 million, in line with previous expectations.

Comvita faced a combination of one-time, non-operating after-tax charges of $7.3 million and various negative tax impacts of $3.5 million, including changes in the depreciation tax on commercial buildings.

The board of directors had engaged an independent expert to provide advice on the impairment.

“The need to consider an impairment charge arises when there is a material gap between a company’s net total assets (tangible and intangible) and its market capitalization,” the company said.

“Any impairment is likely to have a further material negative, non-cash impact on 2024 net profit.”

Comvita said it would inform the market once the impairment was identified, in line with its ongoing disclosure obligations.

According to CEO David Banfield, trading conditions in key markets remained challenging, which, along with $10.8 million in one-time expenses and tax impacts, resulted in the “extremely disappointing” result.

“Given the continued uncertainty on the trade front, we are focused on achieving significant cost reduction targets of $10 million to $15 million, as previously confirmed to the market, and returning Comvita to the profitable growth we achieved between 2020 and 2023,” he said.

Chairman Brett Hewlett: The board examined options to best address market challenges, reduce costs and return the company to profitable growth.

“We will take a more cautious approach to deploying capital and resources while focusing more on immediate value opportunities,” Hewlett said.

Jamie Gray is an Auckland-based journalist covering financial markets and the primary sector. He joined the Herald in 2011.