Half Year 2025 McPherson's Ltd Earnings Call Transcript
Key Points
- McPherson's Ltd (ASX:MCP) achieved revenue of $70.7 million from continuing operations, with $62.5 million from core brands.
- Four out of five core brands showed growth, with Manicare, Swisspers, Lady Jayne, and Fusion Health performing well.
- The company maintains a healthy net cash position and a strong balance sheet, providing flexibility for transformation.
- The new route to market model is expected to unlock $4 million to $5 million in underlying EBITDA by FY26.
- The company has successfully reduced employee costs by $1.7 million through strategic rationalization and restructuring.
- Revenue declined by $5.8 million compared to the prior half, primarily due to exiting non-strategic and lower margin brands.
- Dr. LeWinn’s brand underperformed, with a 5.6% decline in sales, impacting overall core brand performance.
- The transition to a new route to market model will impact approximately 65 roles within McPherson's warehouse team.
- The company expects to incur one-off cash and non-cash costs of $9 million to $11 million in FY25 due to the transformation.
- The current direct-to-store model is not competitive, leading to extended lead times and distribution challenges.
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Good afternoon, everyone, and thank you for joining us today for McPherson's first half 25 results. I'm Brett Charlton and I'm the CEO of McPherson's, and with me is Mark Sherwin, our CFO. Please note the disclaimer on the screen at the start of this presentation. I'll take us through section one of the presentation and then hand over to Mark to present the financials on the slide five, please.
The first half 25 result is a solid one during a demanding six months for the business in the midst of a transformation that had to happen. We achieved revenue from continuing operations of $70.7 million $62.5 million from core brands, and underlying EBITDA of $2 million.
Sales from our continuing operations include the impact of exiting non-strategic lower margin brands, the brands we'd identified for exit back in November 2023 when we reset the group's strategy. That accounts for just over half of our revenue decline this year. The remaining shortfall is attributed attributable
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