• Operating cash outflows improved to $0.3m vs $0.9m in Q1 FY2025
• BLC Cosmetics on budget, exploring new products
• Bouf Haircare by York Street Brands continues strong performance, $9m sales expected
• Company has sufficient funds for next 2 quarters

Anagenics Limited (ASX:AN1) has provided an update on its activities during the quarter ended 30 September 2025 (1Q26). During 1Q26, the company's operating cash outflows improved to $0.3 million, compared to $0.9 million in the prior corresponding period (1Q25). This $0.6 million improvement was driven by a $0.3 million reduction in staff and director costs, a $0.2 million reduction in advertising and marketing costs, and a $0.1 million reduction in administration and corporate costs. These changes reflect the successful business restructuring undertaken in late 2024/early 2025. While the operational restructure is now complete, the resolution of outstanding creditors drove negative cash flow during 1Q26, but this impact is expected to end during 2Q25. The company's BLC Cosmetics business is tracking on budget and exploring additional products to add to its portfolio. Following a successful launch in May 2025, the Bouf Haircare brand by York Street Brands (YSB) continued its strong performance and is on track to achieve greater than $9 million in sales in its first year, ahead of initial expectations. YSB is also evaluating further growth opportunities, including potential expansion into international markets, which is expected to generate higher royalty fee receipts for the company in FY26. During 1Q26, royalty revenue attributable to the YSB product line was $203,000, with respective cash receipts received in October (i.e., 2Q26). The directors of Anagenics believe the company has sufficient funds on hand to support its normal level of net operating cash flow requirements over the next two quarters, such that the company does not require additional equity funding for this purpose. The company continues to search for value-accretive opportunities in line with its stated strategy and objectives.

The company expects the Bouf Haircare brand by York Street Brands to achieve greater than $9 million in sales in its first year, which is expected to generate higher royalty fee receipts for the company in FY26.