McPherson’s FY25: $7.3M EBITDA Amid Transformation, Fusion Health Leads Growth

Transformation in Motion

At its 2025 Annual General Meeting, McPherson’s Limited provided a comprehensive update on the progress of its strategic reset, initiated in late 2023 under new CEO Brett Charlton. The company has refocused its efforts on its core health, wellness, and beauty brands, Manicare, Lady Jayne, Dr. LeWinn’s, Swisspers, and Fusion Health, following the divestment of the Multix brand in June 2024. This move was aimed at shedding exposure to external market pressures and reallocating resources toward higher-growth, higher-margin categories.

The transformation has been extensive, involving a complete overhaul of the operating model, including a shift to an asset-light route-to-market strategy. By outsourcing warehouse operations to specialist wholesalers and third-party logistics providers, McPherson’s has streamlined distribution, reduced its fixed cost base, and positioned itself for greater scalability and service efficiency.

Financial Performance and Challenges

FY25 results reflected the complexity of this transition. Revenue from continuing operations reached $139 million, with core brands growing modestly by 1.9% to $124.6 million. However, underlying EBITDA declined slightly to $7.3 million from $7.7 million the previous year, maintaining a margin around 5.2%. The company recorded $19.7 million in material items, largely due to transformation-related costs and non-cash impairments, signaling the heavy investment required to reset the business.

Despite these challenges, McPherson’s anticipates recurring EBIT benefits of $4.5 to $5 million from FY26 onwards as the new operating model matures. A significant portion of these savings will be reinvested into brand marketing, customer engagement, and capability building to drive sustainable growth.

Brand Focus and Market Position

Among the core brands, Fusion Health stood out with a 10.5% revenue increase, demonstrating the potential of targeted brand revitalisation. Investments in consumer research, digital marketing, and innovation have laid the groundwork for further growth. The company plans to relaunch Dr. LeWinn’s with refreshed positioning and new product development in FY26, underscoring its commitment to brand rejuvenation.

McPherson’s also highlighted progress in commercial capabilities through enhanced trade promotion management tools and data analytics, aiming to deepen customer partnerships and improve promotional effectiveness.

Governance and Capital Management

Governance changes were notable, with Alison Cook assuming the role of Board Chair and ongoing board renewal efforts to align skills with the company’s strategic direction. The Board decided against paying a final dividend for FY25, prioritising capital preservation to support the embedding of the new operating model. Debt facilities were reduced from $45 million to $25 million, reflecting lower working capital needs, with refinancing efforts underway to secure future funding.

Looking Ahead

McPherson’s is cautiously optimistic about FY26, expecting moderate EBITDA growth weighted to the second half of the year. The company plans to continue embedding its operating model, reinvesting in its brands, and expanding digital capabilities, including a methodical rollout of a new enterprise resource planning system. An investor webinar scheduled for December 2025 will provide further strategic insights and financial guidance.

Overall, McPherson’s is navigating a complex transformation with a clear focus on building a leaner, more consumer-centric business poised for sustainable growth in the competitive health and beauty sector.