• Two years of transformation to reset the business
• Accelerating strategy to build strong and relevant brands
• Driving a high-performance culture and digital capabilities

McPherson's Limited has undergone a significant transformation over the last two years, addressing the structural underperformance of the business and resetting it for future growth. The company started with a portfolio of great but forgotten brands, facing a high fixed-cost base and unstable, declining results. To address this, McPherson's went back to basics, resetting its brand portfolio and route to market, reducing and reshaping the cost base, and modernizing its systems, culture, and processes. This involved bringing in a new leadership team with specific expertise in turnaround, transformation, supply chain, and technology. The company streamlined its portfolio, exiting non-core brands to become a pure-play health and beauty company, and overhauled its operating model, exiting its own warehouse and becoming a sales and marketing company that leverages specialist third-party logistics and wholesalers. Driving a major cultural shift, McPherson's has reshaped its workforce, reducing headcount by 55% and refocusing on digital, commercial, and brand-building expertise. Early progress is encouraging, with increased brand reach, reduced inventory, and emerging benefits from the new model. Looking ahead, the company is focused on accelerating its strategy, creating consumer demand, capturing value with customers, and unleashing the potential of its people. This includes a methodical approach to building its brands, leveraging innovation, consumer insights, and targeted marketing, as well as expanding into new channels and customers. Underpinning this is a significant investment in digital capabilities to enable the new business model. The financial case for change is also clear, with the transformation expected to deliver material benefits in revenue, gross margin, and fixed cost savings.

McPherson's expects to deliver annual benefits of $2.0m to $2.5m in revenue and gross margin, and $6.0m to $6.5m in fixed cost savings, from its new route-to-market model. These benefits are expected to be realized from the 2025 financial year onwards.

McPherson's is well-positioned for growth, with a focused portfolio of strong health and beauty brands, a modernized operating model, and a high-performance culture. The company is confident in its ability to capture the significant opportunities in its core markets, driven by favorable macro trends and its disciplined execution of its brand-building and customer expansion strategies.