Highlights

  • McPherson's Limited (ASX:MCP) reported FY26 revenue of A$118.3 million, down 14.9%.
  • Underlying EBITDA was A$4.3 million, while the statutory loss after tax was A$20.3 million.
  • Material items of A$25.6 million before tax included A$20.7 million of non-cash impairments.
  • Net cash was A$4.5 million at 30 June 2026, with debt facilities undrawn; no final dividend was declared.

McPherson's Limited owns and markets Australian health and beauty brands, including Manicare, Swisspers, Lady Jayne, Dr. LeWinn's and Fusion Health, sold through pharmacy, grocery, health food and e-commerce channels. The company's FY26 results, released in August, described a year affected by a change in route-to-market and a Federal Court decision.

Company Business

McPherson's operates mainly in Australia and New Zealand, which generated revenue of A$115.8 million in FY26, with a small International segment contributing A$2.6 million. Its portfolio includes beauty tools and accessories, cotton products, hair accessories, facial skincare and vitamins, minerals and supplements. The company reports category shares of 36.3% in beauty tools and accessories, 67.1% in cotton and 26.9% in hair accessories.

FY26 was the first full year under a new pharmacy wholesaler and third-party logistics model. For McPherson's (ASX:MCP), pharmacy wholesale availability now extends to more than 4,500 outlets, about 950 more than before the transition, and the company has launched e-commerce sites for Dr. LeWinn's and Fusion Health.

Recent Development

In late August 2026, McPherson's released its FY26 results for the year ended 30 June 2026, which the presentation described as below expectation, reflecting transition and execution challenges. Disruption was greatest in independent pharmacy, with out-of-stock issues affecting Dr. LeWinn's and weaker-than-expected Fusion Health performance.

On 13 August 2026, the Federal Court ruled in favour of the Australian Securities and Investments Commission in proceedings against the company and a former chief executive. A further hearing will determine penalties and orders will be announced separately. McPherson's (ASX:MCP) recognised a A$2.0 million provision as its best estimate, although the final amount may differ materially.

The company also refinanced its debt facilities, which were undrawn at 30 June 2026, and repurchased 4,995,130 shares for A$0.8 million under an on-market share repurchase program. No final dividend was declared.

Financial Performance and Sector Context

FY26 revenue from continuing operations was A$118.3 million compared with A$139.0 million. Core brand revenue was A$110.5 million, down 11.3%. Excluding new wholesaler rebates and transitional pipe-fill, revenue fell 10.1%. Gross margin was 58.8%, up 0.9 percentage points, while underlying contribution after advertising and promotion was A$41.6 million, down 21.2%.

Underlying EBITDA was A$4.3 million compared with A$7.3 million, and underlying EBIT was A$0.2 million. Underlying net loss after tax was A$0.5 million. Material items totalled A$25.6 million before tax, including A$15.0 million of ANZ goodwill impairment and A$5.7 million of brand impairments. Statutory loss after tax was A$20.3 million, or 14.2 cents per share from continuing operations.

By brand, Manicare revenue was A$45.1 million, down 5.7%, Swisspers was A$21.8 million, up 1.0%, Lady Jayne was A$15.8 million, down 18.7%, Dr. LeWinn's was A$15.7 million, down 22.3% and Fusion Health was A$12.1 million, down 22.1%. The new operating model delivered about A$2.8 million of EBITDA benefit and A$5.6 million at EBIT level, while employee costs fell 21.5% to A$24.9 million.

Net cash was A$4.5 million compared with A$8.8 million, after A$6.4 million of additional inventory to restore product availability. Management noted that subdued fourth-quarter sales continued into July.

Risks to Consider

For McPherson's (ASX:MCP), wholesaler ranging and stock availability remain important for revenue, as shown by the effect of out-of-stocks on promotional activity. Penalties in the ASIC proceedings could differ from the provision recognised. International sales fell on weak demand for Dr. LeWinn's in China, and the company is moving that segment to a distributor-led model. Impairments indicate that brand and goodwill carrying values depend on future earnings.

What to Watch Next

Management has set a goal of underlying EBITDA growth for FY27. Stated priorities include joint business planning with customers, wider availability of bestselling products at wholesalers, expanded e-commerce investment, more frequent innovation launches and social and creator-led marketing. Implementation of the distributor-led international model is expected to begin in FY27, and the penalty orders in the ASIC matter are pending. The half-year to 31 December 2026 is the next reporting period and will show whether the subdued sales trend noted in July has changed.

Key Insights

McPherson's (ASX:MCP) recorded lower revenue and EBITDA in FY26 as it completed a transition to a new pharmacy wholesale and logistics model, and it booked substantial non-cash impairments. The balance sheet shows net cash and undrawn facilities, although no dividend was declared. Early FY27 trading was described as subdued, and the ASIC penalty outcome remains outstanding. Items to monitor include product availability, wholesaler ranging, cost savings, international restructuring and the legal outcome.