OMG Group’s Revenue Surges 63% to $4.13M, Loss Narrows 18%
OMG Group Limited reported a 63% revenue surge to $4.13 million in FY2025, driven by its acquisition of Good Oats Pty Ltd and strong growth in its Blue Dinosaur brand. The company also trimmed its loss by 18% and improved gross margins, signaling operational progress despite ongoing challenges.
- 63.3% revenue increase to $4.13 million
- 18.2% reduction in net loss to $1.9 million
- Acquisition of Good Oats Pty Ltd (Oat Milk Goodness) completed
- Gross margin improved to 40.2%, highest in company history
- Board restructuring with new Non-Executive Chairman Daniel Rootes
Strong Revenue Growth and Strategic Acquisition
OMG Group Limited, formerly Forbidden Foods Limited, has delivered a transformative year ending 30 June 2025, reporting a 63.3% increase in revenue to $4.13 million. This growth was largely fueled by the September 2024 acquisition of Good Oats Pty Ltd, trading as Oat Milk Goodness, which has diversified OMG’s portfolio in the fast-moving consumer goods (FMCG) sector.
The acquisition complements OMG’s existing Blue Dinosaur brand, both positioned in the ‘Better For You’ health and wellness market. Management highlighted that the integration of Good Oats has already boosted near-term cash flow and broadened the company’s customer base.
Improved Margins and Reduced Losses
Alongside top-line growth, OMG Group improved its gross margin to 40.2%, up 12.3 percentage points from the prior year, marking the highest margin in the company’s history. This was achieved through strategic sourcing of packaging and ingredients without compromising product quality.
Despite still reporting a net loss after tax of $1.9 million, this represents an 18.2% improvement compared to FY2024. When adjusting for one-off acquisition costs, the normalized loss shrinks further by nearly 27%, reflecting tighter cost management and operational efficiencies.
Board Restructuring and Leadership Changes
The company underwent significant governance changes during the year. Daniel Rootes joined the board in September 2024 and was appointed Non-Executive Chairman in April 2025. Rootes brings extensive financial services experience and was a founding director of Good Oats, underscoring his vested interest in the company’s success.
Other board changes included the departure of several directors and the appointment of Tim Freeburn, co-founder of the award-winning Australian tequila brand Sesión Tequila, adding FMCG expertise to the leadership team.
Capital Raises and Cash Flow Momentum
OMG Group completed multiple capital raises during FY2025, totaling approximately $3.65 million, including a $1 million placement in February 2025 and a $0.65 million raise linked to the Good Oats acquisition. Post-year-end, the company secured firm commitments for a further $2 million to support inventory build and expansion into major Australian retailers and e-commerce channels.
Operationally, the company reported its first positive net operating cash flow quarter since mid-2023, with June 2025 net sales hitting a record $602,000 and quarterly sales doubling year-on-year to $1.32 million. This momentum bodes well for sustaining growth into FY2026.
Challenges and Outlook
While the company’s financials show encouraging progress, material uncertainty remains regarding its going concern status due to net current liabilities and ongoing losses. Management’s confidence rests on continued capital raising success and operational execution. The company’s focus on cost control, brand integration, and channel expansion will be critical to turning the corner toward profitability.
Investors will be watching closely how OMG leverages its expanded brand portfolio and capital base to meet growing demand in the competitive health-focused FMCG market.
Bottom Line?
OMG Group’s FY2025 results mark a pivotal step forward, but the path to sustained profitability hinges on execution and capital market support.
Questions in the middle?
- How quickly can OMG fully integrate Good Oats and realize expected synergies?
- Will the upcoming $2 million capital raise be sufficient to meet retailer demand and scale inventory?
- What are the company’s plans to achieve sustained profitability beyond margin improvements?
