Image source: Shutterstock

Highlights

  • Wingara paused operations at Epsom site in November 2024 due to negative margins from weak fodder prices.
  • Sale of hay processing equipment for AUD 750,000 million completed following shareholder approval.
  • FY25 revenue rose 18% to AUD 3.5 million, but operations were not sustainable beyond November.

Wingara AG Limited (ASX:WNR) is an Australian agribusiness focused on processing and exporting fodder products. The company operates through its JC Tanloden subsidiary and engages in hay processing, storage, and marketing services.

The company has released its financial and operational results for the 2025 financial year (FY25), highlighting a challenging year shaped by weak fodder market conditions, a strategic pause in operations, and efforts to realign its business model.

The company operated its JC Tanloden (JCT) business as a single-site operation during the reporting period, focusing on fodder production and operational efficiencies. Despite these efforts, subdued market demand and falling prices prompted management to suspend operations at its Epsom site in November 2024. The site had been processing hay from the 2024-25 season, albeit at reduced volumes. The pause led to the redundancy of several operational staff. However, JCT continues to support customers and farmers through storage and marketing services using existing infrastructure.

In February 2025, Wingara initiated the sale of its Export Hay Press and associated equipment for AUD 750,000 plus GST. The decision was driven by the need for greater production efficiency, which management concluded could only be achieved through higher throughput than the current Epsom facility and equipment could deliver. The sale was approved by shareholders on 9 April 2025, and the funds have now been received.

The company stated that ongoing market challenges are expected to persist through 2025, influencing its decision to further reduce its operating cost base. Management is now concentrating on merger and acquisition discussions as part of its future strategy.

Despite the pause in production late in the year, Wingara reported an 18% YoY increase in total revenues from continuing operations, reaching AUD 3.5 million. This increase reflects higher production volumes prior to the November 2024 operational halt. However, these volumes were insufficient to generate sustainable margins.

Operating cash outflow for FY25 was AUD 1.68 million, an improvement of AUD 322,059 million compared to the FY24 outflow of AUD 2 million. The primary drivers of the cash outflow were a reported EBITDA loss of AUD 926,884 million and working capital movements.

No dividends were paid or declared during the financial year. The last dividend payment, a fully franked special dividend of AUD 0.006 per share, was issued in May 2023.

WNR shares were trading flat at AUD 0.007 per share at the time of writing on 30 May 2025. On a YTD basis, the share price has declined by approximately 22.22%.