Comvita undergoes management changes after announcing huge losses

photo: supply

Honey exporter Comvita has made management changes just two weeks after announcing huge losses.

The company said David Banfield would step down as chief executive and managing director and would become an advisor to the board.

Chairman of the Board Brett Hewlett will assume the role of acting CEO and will step down as a director and chairman.

Independent director Bridget Coates was named chair of the board.

Conway said the total number of board members would be reduced from eight to six, and invited its founder Alan Bougen to return as an advisor.

Just two weeks ago Comvita announced It posted a loss of $16.8 million due to weak demand from Chinese customers.

Banfield joined Comvita as CEO in January 2020 and said it has been “an absolute privilege to lead Comvita” during this time.

He said: “I am sorry to leave at this time after a poor performance last year, which was impacted by the slowdown in China, our largest market.”

“As a believer in a performance culture, I take ultimate responsibility for this outcome, but I firmly believe that the investments we have made will help us return to profitable growth in the near future as conditions improve,” Banfield said.

Hewlett said the impact of the global economic slowdown on sales, profits and Comvita’s share price was “severe” for the board and shareholders.

“Faced with extremely poor FY24 financial results and a slower-than-expected recovery in global demand, we have been forced to pause several long-term investment strategies and adopt a more cautious approach to deploying capital and resources, while increasing our focus on some immediate value opportunities.”