• Revenue down 7.6% to $70.7 million
• Underlying EBITDA down 71.3% to $2.0 million
• Transition to outsourced warehousing and pharmacy wholesaling model

McPherson's Limited has released its 1H25 Appendix 4D and Financial Report for the period ended 31 December 2024. Revenue for the half was $70.7 million, down 7.6% compared to $76.5 million in 1H24, primarily due to the decision to exit non-strategic lower margin brands and impacts on the company's portfolio and core brands. Underlying EBITDA from Continuing Operations was $2.0 million, down from $7.0 million in 1H24, reflecting higher A&P investment and impacts from mix and lower sales activity. The company has recognised $0.4 million in pre-tax material items expense, including brand impairments and restructuring costs. The company's net cash position at 31 December 2024 was $11.6 million. Given the loss after tax position, the Board has determined not to declare an interim dividend. The company has announced a transition to an outsourced third-party warehousing and pharmacy wholesaling model, which may impact around 65 roles within its warehouse team. McPherson's expects to incur material items of $9.0 million to $11.0 million in FY25 related to the transition. The company has also reduced its debt facility capacity from $47.5 million to $27.5 million.

McPherson's is progressing its transition to an outsourced third-party warehousing and pharmacy wholesaling model, which is expected to result in material items of $9.0 million to $11.0 million in FY25. The company has also reduced its debt facility capacity to better match the working capital requirements of the business following the divestment of Multix.