Can OMG Group Sustain Growth Amid Rising Marketing and Inventory Costs?

Strong Sales Momentum and Retail Expansion

OMG Group Limited (ASX – OMG) has delivered a compelling start to FY26, reporting quarterly cash receipts of $1.17 million; a 56% increase compared to the same period last year. This marks the fourth consecutive quarter where receipts have exceeded the $1 million mark, underscoring the company’s growing market traction and operational strength.

Central to this growth has been the significant expansion of OMG’s product distribution. The Oat Milk Goodness range has more than doubled its presence in Woolworths supermarkets, increasing from approximately 500 to over 900 stores nationwide. Simultaneously, the Blue Dinosaur brand has secured a national stocking agreement with 7-Eleven Australia, rolling out products in up to 750 convenience stores. These strategic retail partnerships broaden OMG’s footprint across both traditional grocery and convenience channels, positioning the company well for sustained revenue growth.

Capital Raise and Strategic Investments

In August 2025, OMG Group successfully completed a $2 million placement, issuing 200 million new shares at $0.01 each. The capital injection is earmarked for inventory build-up and marketing initiatives, essential to meet the anticipated surge in demand during the summer sales period. The company’s management has also implemented new working capital arrangements, including extended payment terms with key providers, to optimize cash flow and inventory management.

Marketing Push and Seasonal Catalysts

Looking ahead, OMG Group is gearing up for a busy December quarter. The company has launched a 'Summer of Cricket' marketing campaign in partnership with the SEN Radio Network, leveraging the popularity of cricket legends Steve Smith and Alex Carey as brand ambassadors. This campaign is timed to coincide with major retail events such as Black Friday, Cyber Monday, and Boxing Day, which are expected to drive further sales momentum.

Additionally, the company’s eCommerce channels continue to perform strongly, with Blue Dinosaur online sales growing 130% year-on-year on a moving annual total basis. This multi-channel approach, combining retail expansion with digital growth and targeted marketing, reflects OMG’s strategic focus on scaling its health and wellness portfolio.

Financial Position and Outlook

Despite operating outflows of approximately $233,000 related to prepaid marketing and inventory costs, OMG Group ended the quarter with a healthy cash balance of $1.65 million and available financing facilities totaling $1.25 million. This financial flexibility supports the company’s growth ambitions as it navigates the peak retail season.

CEO Alex Aleksic highlighted the company’s confidence in its trajectory, noting that the expanded retail presence and marketing initiatives set the stage for continued scale and margin improvement. With multiple near-term catalysts in play, OMG Group is well positioned to consolidate its status as a leading player in Australia’s better-for-you FMCG sector.