Can Aumake Sustain Growth Amid Rising Operating Outflows and Capital Needs?
Aumake Limited reported a remarkable 213% surge in quarterly cash receipts, driven by exclusive distribution agreements and strategic cost reductions, setting the stage for profitability in FY26.
- Quarterly cash receipts surged 213% year-on-year to A$15.5 million
- Exclusive three-year Kabrita distribution deal signed for Australia and New Zealand
- Danone infant formula sales exceeded A$13 million under new agreement
- Operational cash expenditure reduced by 24% through cost-cutting measures
- Company restructures business and explores capital raising to support growth
Strong Revenue Momentum
Aumake Limited (ASX, AUK) delivered a standout quarter ending June 2025, with cash receipts soaring to A$15.5 million. This represents a 213% increase compared to the same period last year and a 22% rise from the previous quarter, underscoring robust demand and effective sales execution.
The surge was largely fueled by two pivotal distribution agreements inked earlier this year. In April, Aumake secured a three-year exclusive distribution deal for Kabrita High-Calcium Adult Goat Milk Powder across Australia and New Zealand, with sales already surpassing A$1.5 million. Meanwhile, a May agreement with Rockcheck Shipping Ltd facilitated sales of Danone infant formula products, which have impressively exceeded A$13 million.
Operational Efficiency and Cost Discipline
Despite increased net cash used in operations, rising to A$1.66 million due to upfront product payments, the company’s focus on cost control is beginning to bear fruit. Operational cash expenditure, excluding customer and supplier payments, fell by 24% to A$864,000 compared to the prior quarter.
Executive director fees were cut in April, delivering an annual saving of A$400,000, and a comprehensive review of fixed costs is underway. This disciplined approach aligns with Aumake’s goal of achieving cash flow positivity and profitability in the coming fiscal year.
Strategic Restructuring and Future Outlook
July saw the announcement of a streamlined business structure designed to sharpen focus on key strategic objectives. This restructuring aims to reduce complexity and enhance operational agility, supporting sustainable growth across Australia, New Zealand, and the broader Asia-Pacific region.
With cash at bank standing at A$1.677 million and a remaining A$1 million loan facility, Aumake is actively exploring options to raise additional capital if necessary. Discussions with brokers are ongoing to secure mandates for potential funding, ensuring the company is well-positioned to capitalize on growth opportunities in FY26.
Executive Director Hai Yun Chen expressed confidence in the company’s trajectory, highlighting the strong foundation laid by recent agreements and cost initiatives. The dual focus on expanding high-quality product offerings and operational efficiency sets a promising path forward.
Bottom Line?
Aumake’s blend of strong sales momentum, strategic partnerships, and disciplined cost management positions it well for a pivotal FY26, investors will watch closely for capital moves and sustained profitability.
Questions in the middle?
- How will Aumake balance upfront product payments with cash flow sustainability in FY26?
- What impact will the new business structure have on operational efficiency and margins?
- When and how might Aumake execute additional capital raising to support growth?
