Positive Cashflow and Record Sales: Can OMG Group Maintain Momentum?

Record Sales Momentum

OMG Group Limited (ASX – OMG) has delivered an impressive trading update for June 2025, reporting record monthly invoiced sales of $602,000. This milestone marks the highest monthly sales figure since new management took the helm in 2023, reflecting the company’s successful execution of its growth strategy.

The June quarter net sales doubled compared to the same period last year, reaching $1.32 million, while the second half of FY25 saw net sales surge 125% to $2.40 million. These figures underscore a robust expansion of OMG Group’s revenue base, driven by both ecommerce and traditional retail channels.

Ecommerce Driving Growth

A standout contributor to this growth has been the Blue Dinosaur brand, whose ecommerce sales hit a record $322,000 in June, a 202% increase on the prior corresponding period. This surge was bolstered by a targeted end-of-financial-year marketing campaign, which helped push the brand’s moving annual total ecommerce sales to $1.51 million, up 132% year-on-year.

OMG Group’s ecommerce channel, offering high-margin direct-to-consumer sales, complements its expanding distribution partnerships with major Australian retailers. This diversified sales footprint is central to the company’s strategy to build sustainable, multi-channel revenue streams.

Improved Cashflow and Operational Efficiency

Alongside sales growth, OMG Group reported positive net operating cashflow of $242,000 for June, reflecting improved inventory management and disciplined cost control. A strategic inventory build earlier in the year ensured the company could meet rising demand without compromising cashflow.

This positive cashflow trend positions OMG Group to potentially record its strongest quarterly operating cashflow since the management transition, setting the stage for a push towards profitability and cashflow breakeven in FY26.

Looking Ahead

CEO Alex Aleksic highlighted the company’s strong momentum and outlined plans to expand product ranging agreements with large Australian retailers and pursue international distribution partnerships, particularly in key Asia-Pacific markets. The company is also exploring targeted mergers and acquisitions to accelerate growth.

With a streamlined business model, clear product-market fit, and a growing sales profile, OMG Group appears well positioned to build on its FY25 achievements and deliver further shareholder value in the coming year.