• Transitioned to new wholesaler and third-party warehousing model
• Core brands grew 1.9%, offset by portfolio brand declines
• Underlying EBITDA down 5.3% to $7.3m
• Recognised $19.7m in material items, including brand impairments

During FY25, McPherson's 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 to position the business for long-term, sustainable growth. Revenue was $139.0 million, down 3.9% compared to $144.7 million in FY24, with $4.1 million of the decline attributable to the exit of certain non-strategic lower margin brands. Sales of the company's core brands, which comprise 89.8% of McPherson's sales, rose 1.9% to $124.6 million in FY25, compared to $122.4 million in FY24. This was a steady result in a more challenging trading environment, with lower growth rates across the core brand categories in FY25 compared to FY24. Underlying EBITDA was $7.3 million for FY25, down $0.4 million compared to $7.7 million in FY24. The company recognised a total of $19.7 million in pre-tax material items, including non-cash impairments to intangible assets and costs related to the new operating model. Net Cash was $8.8 million at 30 June 2025, compared to $14.1 million at 30 June 2024. The company's priority for 1H26 is to embed the new operating model, while capitalising on the improved distribution and service delivery capabilities, and other strategic benefits, that it provides.

The company expects a substantial portion of the incremental EBIT benefits from the new operating model to be reinvested in the company's customers, brands, and capabilities in FY26, in line with its strategy. Management expects this investment to deliver moderate first-year returns. The company benefited from approximately $5 million of transitional pipe-fill revenues in FY25, which will not occur in FY26. Transitional pipe-fill from the onboarding of API will partially offset this.