Wingara AG Reports 18% Revenue Rise but Posts $1.47M Loss in FY25

Financial Performance and Operational Challenges

Wingara AG Limited has released its preliminary final results for the financial year ended 31 March 2025, revealing a mixed performance marked by revenue growth but ongoing operational pressures. The company recorded an 18% increase in revenue to $3.5 million, driven by increased production volumes prior to the November 2024 pause in fodder operations. Despite this top-line growth, Wingara reported a net loss after tax of $1.47 million, a significant improvement from the previous year's $3.13 million loss, reflecting cost control efforts and operational restructuring.

The decision to pause fodder business operations in November 2024 was prompted by persistently challenging market conditions and negative margins, which made continued production unsustainable. This pause led to redundancies among operational staff and a strategic shift towards cost reduction and asset optimisation.

Asset Sales and Cost Management

In line with its restructuring efforts, Wingara completed the sale of its Epsom Export Press and related equipment for $750,000, with $550,000 received before the end of the financial year and the balance shortly after shareholder approval in April 2025. The sale reflects management’s focus on streamlining operations and generating cash to support the business through a difficult market environment.

Cash reserves declined sharply by 71% to $648,304, and net assets fell to $392,691, underscoring the financial strain the company faces. Operating cash outflows improved slightly to $1.68 million but remain a concern. The company has also reduced its operating base and is actively pursuing mergers and acquisitions opportunities to strengthen its position.

Going Concern and Future Outlook

Wingara’s directors have flagged material uncertainty regarding the company’s ability to continue as a going concern, citing the need for additional capital to support operations and meet obligations. The company is confident in its ability to raise funds through equity or debt, but the timing and success of such efforts remain uncertain.

No dividends were declared for FY25, reflecting the company’s focus on stabilising its financial position. The final audit report is pending and expected to include a material uncertainty related to going concern. Investors will be watching closely for updates on capital raising, operational restart plans, and market recovery in the fodder sector.