• Revenue from Continuing Operations down 7.6% to $70.7 million
• Underlying EBITDA from Continuing Operations of $2.0 million
• Statutory net loss after tax of ($0.9) million
• New operating model identified and implementation underway

McPherson's Limited (ASX: MCP) today announced its results for the six months ended 31 December 2024 (1H25). Revenue from Continuing Operations was $70.7 million, down 7.6% compared to $76.5 million in 1H24. This decline was primarily driven by the decision to exit non-strategic lower margin brands, as well as impacts on the company's portfolio and core brands. Core brand revenue was down 2.0% to $62.5 million, though four out of five core brands achieved moderate growth. Underlying EBITDA from Continuing Operations was $2.0 million, down from $7.0 million in 1H24, mainly due to increased A&P investment and the impacts of mix and marginally lower sales activity. The company recorded a statutory net loss after tax of ($0.9) million, down from a net profit of $1.6 million in 1H24. McPherson's has a net cash position of $11.6 million and is focused on implementing a new operating model to address residual fixed costs following the divestment of Multix. This transition to a third-party warehousing and logistics model is expected to unlock incremental annual underlying EBIT of $4.0 to $5.0 million from FY26 onwards, though the company expects to incur $9.0 to $11.0 million in material items in FY25 to facilitate the change.

Management remains focused on progressing the transformation of the business, with the priority for 2H25 being the implementation of the new operating model. The company continues to see early indicators that its brands are gaining traction with customers and consumers, including gains in category market share. Management continues to anticipate that FY25 underlying EBITDA will be majority weighted to 2H25.