Highlights

  • H1 FY26 revenue was USD 706,000, down 18.57% year on year.
  • The company recorded a USD 120,000 profit against a USD 1.178 million prior-period loss.
  • The filing disclosed an AUD 2.5 million placement and the planned Sprout Organic acquisition.

Nutritional Growth Solutions Ltd (ASX:NGS) was quoted at AUD 0.019, unchanged, with its interim accounts documenting lower sales and a half-year profit. H1 FY26 revenue was USD 706,000, down 18.57% year on year. The company recorded a USD 120,000 profit against a USD 1.178 million prior-period loss. The filing disclosed an AUD 2.5 million placement and the planned Sprout Organic acquisition.

Half-Year Sales and Earnings

For the six months ended 30 June 2026, Nutritional Growth Solutions reported revenue of USD 706,000 compared with USD 867,000 in H1 FY25, a decrease of 18.57%. Its net result after tax was a profit of USD 120,000, versus a USD 1.178 million loss in the previous corresponding half-year. The group also recorded operating profit of USD 56,000, against an operating loss of USD 909,000. The filing attributes the change in profitability to cost discipline and working-capital optimisation. The report’s financial statement amounts are denominated in US dollars unless expressly noted otherwise.

Inventory, Online Sales and Funding

The company stated that historical inventory availability issues had been resolved and that a new digital sales platform was operating. It also reported full repayment and closure of legacy borrowing arrangements by 30 June 2026. These included Amazon Lending, Shopify Capital, company credit cards and an interim related-party loan. Nutritional Growth Solutions described its intention to expand its US retail presence while controlling costs. The document separately reported net operating cash outflow of USD 100,000 for the half-year, which is distinct from the positive statutory profit.

Sprout Organic Proposal and Placement

On 25 May 2026, Nutritional Growth Solutions entered into a binding share sale agreement to acquire all of Sprout Organic Pty Ltd for approximately AUD 8 million of upfront share consideration, at a deemed issue price of AUD 0.02. The company also secured commitments for a placement of 125 million shares at AUD 0.02, raising AUD 2.5 million. Its filing reported shareholder approval of both the acquisition and placement on 10 August 2026, and said the placement had settled. The acquisition was then expected to complete subject to remaining conditions.

Financial Position and Review Qualification

Net tangible asset backing was 0.036 cents per security at 30 June 2026, against negative 0.016 cents in the earlier period. No dividend was proposed or declared. The interim statements were reviewed rather than audited, and the independent reviewer issued an unmodified conclusion with a material-uncertainty-related-to-going-concern section. The report cited an accumulated deficit of USD 20.588 million and negative operating cash flows. The company prepared the accounts on a going-concern basis and discussed fundraising, revenue growth and cost reduction initiatives.