Why Did McPherson's Ltd (ASX:MCP) Report Lower FY26 Revenue and EBITDA?

Aditi Sarkar

28 October 2026 03:24 PM AEDT

Why Did McPherson's Ltd (ASX:MCP) Report Lower FY26 Revenue and EBITDA?

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Highlights

FY26 continuing-operations revenue fell 14.9% to AUD 118.3 million.
Underlying EBITDA declined to AUD 4.3 million from AUD 7.3 million.
Net cash at year end was AUD 4.5 million, against AUD 8.8 million previously.

McPherson's Ltd (ASX:MCP) stood at AUD 0.14, down 3.45%, while the company’s FY26 presentation detailed the financial effects of its distribution transition. FY26 continuing-operations revenue fell 14.9% to AUD 118.3 million. Underlying EBITDA declined to AUD 4.3 million from AUD 7.3 million. Net cash at year end was AUD 4.5 million, against AUD 8.8 million previously.

Continuing Operations Performance

McPherson’s FY26 results presentation showed revenue from continuing operations of AUD 118.3 million, down 14.9% from AUD 139.0 million in FY25. Core brand revenue was AUD 110.5 million, down 11.3% from AUD 124.6 million. Underlying EBITDA declined 41.4% to AUD 4.3 million from AUD 7.3 million, and underlying net profit after tax was a loss of AUD 0.5 million compared with a AUD 0.1 million loss a year earlier. These underlying measures exclude material items and are identified as non-IFRS metrics in the presentation.

Statutory Earnings and Liquidity

The statutory net loss after tax was AUD 20.3 million, compared with a AUD 15.0 million loss in FY25. Net cash, defined as cash and cash equivalents less borrowings excluding leases, stood at AUD 4.5 million, down from AUD 8.8 million. The earnings materials distinguished the statutory result from underlying earnings and described the full year as affected by transition and execution challenges. The figures relate to the financial year ended 30 June 2026, and the company separately outlined priorities for the subsequent year.

Distribution and Product Availability

McPherson’s reported that its transition to a pharmacy wholesale model had been completed. It said its products were available in more than 4,500 pharmacy outlets, approximately 950 more than in FY25. The new operating model was reported to have delivered structural benefits of approximately AUD 2.8 million in EBITDA and AUD 5.6 million in EBIT. The presentation also documented disruption during the route-to-market change, particularly among independent pharmacies, and stock shortages affecting the availability and promotional participation of Dr. LeWinn’s products.

Brand Execution and Next-Year Priorities

Management stated that promotional activities did not generate the targeted demand and that the Fusion Health brand performed below expectations. Alongside its financial results, the company discussed a FY27 plan focused on improving execution following the wholesale transition. The materials also described the need to address the supply and distribution issues encountered in FY26. These are company-stated operating priorities rather than confirmed outcomes for FY27. The disclosed FY26 amounts exclude discontinued operations wherever the presentation specifically labels them as continuing-operations or core-brand metrics.

FAQs

Q: What was FY26 revenue?

A: AUD 118.3 million from continuing operations.

Q: How did underlying EBITDA change?

A: It declined to AUD 4.3 million from AUD 7.3 million.

Q: How much net cash was reported?

A: AUD 4.5 million at year end.

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