Comvita is warning an unfavourable exchange rate, an unseasonably mild winter and one-off charges will hit its half year results.
The natural healthcare group expects to lose $2.2 million in the six months to the end of September.
The result compares to a $1.-6 million profit in the same period last year, and includes $1.5 million of one-off tax and depreciation charges.
Comvita chief executive Brett Hewlett says sales fell from about 40 million to 36.5 million during the period.
But Mr Hewlett says sales to the key Asian market of China have more than doubled over the period, while sales in Hong Kong have grown by about 12 percent.
Meanwhile the company says it expects a decision later this month on an infringement case on one of its wound care patents is being tried in the UK. It says the cost of the legal case has now risen to $2 million.