Highlights

  • Revenue from continuing operations was $118.3 million in FY26.
  • Underlying EBITDA from continuing operations was $4.3 million.
  • The company completed its transition to a new pharmacy wholesaler and 3PL distribution model.
  • FY27 priorities include Brand investment, innovation, E-commerce and customer engagement.

McPherson's Limited (ASX:MCP) is a supplier of essential health and beauty products in Australia, with a portfolio including Manicare, Swisspers, Lady Jayne, Maseur, Glam, Dr. LeWinn’s and Fusion Health. The company focuses on growing these brands through pharmacy, grocery, health food and e-commerce channels. FY26 marked the first full year under McPherson’s new pharmacy wholesaler and 3PL distribution model, as the company worked to establish a lower fixed-cost operating structure and broader distribution platform.

FY26 Performance Reflects Transition to New Distribution Model

McPherson's reported Revenue from continuing operations of $118.3 million for FY26, down 14.9% from $139.0 million in FY25. Underlying EBITDA declined to $4.3 million from $7.3 million, while EBITDA Margin reduced to 3.6%.

The company reported a statutory net loss after tax of $20.3 million, compared with a net loss of $15.0 million in FY25. The result included $25.6 million of material items, including non-cash Impairment charges and restructuring-related costs.

FY26 represented the first full year operating under McPherson’s new pharmacy wholesaler and 3PL distribution model. The transition created disruption across parts of the pharmacy channel, including ranging changes, out-of-stock issues and promotional execution challenges.

Despite these short-term impacts, McPherson’s stated that the new operating model delivered structural benefits, including approximately $2.8 million of route-to-market savings at the EBITDA level and approximately $5.6 million at the EBIT level.

The company continued investing in brand platforms, e-commerce capabilities and innovation initiatives to support future growth.

Brand Performance and Channel Development

McPherson’s core brands experienced mixed performance during FY26. Manicare revenue declined 5.7% to $45.1 million, with performance affected by pharmacy channel disruption and competitive conditions. Growth in grocery and a major pharmacy customer partially offset these impacts.

Swisspers revenue increased 1.0% to $21.8 million, supported by improved off-promotion sales in key pharmacy accounts and stronger promotional initiatives in grocery.

Lady Jayne revenue declined 18.7% to $15.8 million, reflecting ranging changes, lower promotional activity and delays in the rollout of its electrical range.

Dr. LeWinn’s revenue declined 22.3% to $15.7 million, impacted by out-of-stock issues related to packaging refresh activities and supplier consolidation. The company launched a new e-commerce platform for Dr. LeWinn’s during the year, with early growth reported.

Fusion Health revenue declined 22.1% to $12.1 million due to weaker innovation performance, lower health food channel sales and pharmacy ranging disruption.

McPherson’s continued developing direct-to-consumer platforms, Amazon brand platforms and social and creator-led Marketing capabilities.

FY27 Priorities and Financial Position

McPherson’s ended FY26 with net cash of $4.5 million and undrawn Debt facilities. The company’s net cash position declined from $8.8 million in FY25, primarily due to increased Working Capital requirements and higher inventory levels.

Inventory increased by $6.4 million to $26.2 million as the company restored product availability and supported service levels across key brands.

The company’s FY27 priorities include strengthening customer engagement, improving wholesaler SKU availability, accelerating consumer marketing, increasing innovation launches and expanding e-commerce capabilities.

McPherson’s also announced an update regarding Federal Court proceedings relating to ASIC proceedings. The Federal Court of Australia made declarations and orders on 28 August 2026, with a hearing to determine any penalty scheduled to commence on 6 April 2027, subject to any appeal by the company.

The company enters FY27 focused on restoring revenue growth, improving operating performance and leveraging its new distribution model.

Key Insights

McPherson’s FY26 results reflected a transition year as the company implemented a new distribution model and managed brand performance challenges. The company is focused on improving availability, expanding digital channels and rebuilding growth across its health and beauty portfolio.