• Revenue from continuing operations of $139.0 million, down 3.9% due to exit of non-strategic brands
• Core brands revenue up 1.9% to $124.6 million
• Underlying EBITDA of $7.3 million, down 5.3%
• Statutory net loss of $16.6 million from continuing operations

McPherson's Limited (ASX:MCP) announced its audited results for the financial year ended 30 June 2025 (FY25). During FY25, the company transitioned from a direct-to-store distribution model to a new wholesaler and third-party warehousing model. In a challenging trading environment, the FY25 results reflect this period of transformation as well as continued foundational investment in the core health, wellness and beauty brands. Revenue from continuing operations was $139.0 million, down 3.9% largely due to the exit of non-strategic, lower margin brands. Core brands revenue grew 1.9% to $124.6 million. Underlying EBITDA from continuing operations was $7.3 million, down 5.3% on the previous year. The company reported a statutory net loss from continuing operations after tax of $16.6 million. Material items of $19.7 million were recognised, including $10.6 million related to operating model changes. The company generated positive operating cash flow of $2.2 million for FY25 and closed with a net cash position of $8.8 million. McPherson's CEO, Brett Charlton, said the key focus in FY25 was the transformation of the operating model, a prerequisite to drive growth and realise the full potential of the brands. The company has substantially completed this transition, shifting to a new model using specialist wholesalers and a 3PL partner.

The company anticipates moderate growth in underlying EBITDA in FY26, taking into account the absence of $5 million in transitional pipe-fill revenues that occurred in FY25, partially offset by transitional pipe-fill from the onboarding of API.

With the implementation of the new operating model, McPherson's has a more focused and scalable value-creation platform to realise the potential of its core brands. The company's priority for 1H26 is to embed the new operating model, along with the enhanced talent, processes and data capability to support it, while capitalizing on the improved distribution and service delivery capabilities, and other strategic benefits, that it provides.