• Operating cash outflows reduced by 100% compared to 1H24
• BLC Cosmetics trading profitably after restructuring
• York Street Brands' Bouf Haircare brand on track to exceed $9 million in sales

Anagenics Limited (ASX: AN1) has provided an update on its activities during the quarter ended 31 December 2025 (2Q26). The company's operating performance has improved significantly, and it is now trading profitably and is expected to trade profitably for FY 2026. During 2Q26, Operating Cash Outflows were $0.3m, a 100% improvement compared to outflows of $1.2m in 1H24. This improvement was driven by the resolution of outstanding creditors. BLC Cosmetics, after a successful restructuring, is now trading profitably and exploring additional products to add to its portfolio. York Street Brands' Bouf Haircare brand, developed using Anagenics' proprietary technology, continued its strong performance and appears to be on a trajectory to exceed $9 million in sales in its first year. The company 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. The company has recorded $499k in revenue attributable to the Bouf Haircare brand during the first half of FY 2026. Overall, the company's operational performance is in line with the post-restructure budget.

The company expects to trade profitably for FY 2026.

The company is exploring additional products to add to its BLC Cosmetics portfolio and evaluating growth opportunities, including potential international expansion, for its York Street Brands division, which is expected to generate higher royalty fee receipts in FY26.