Merino & Co. Reports 36% Revenue Drop and $2.76M Loss in FY2025
Merino & Co. Limited reported a significant 36% decline in revenues alongside a $2.76 million loss for the fiscal year ended June 2025, marking a stark reversal from the prior year’s modest profit.
- 36% decrease in revenues to $3.51 million
- Net loss of $2.76 million compared to prior year profit
- No dividends declared for the year
- Net tangible assets per share slightly increased to 7.47 cents
- Unmodified audit opinion issued on financial statements
A Challenging Year for Merino & Co.
Merino & Co. Limited, a player in the apparel and accessories sector, has reported a sharp downturn in its financial performance for the year ended 30 June 2025. Revenues fell by 36% to $3.51 million, a significant drop from the $5.5 million recorded in the previous year. This decline has translated into a substantial net loss of $2.76 million, a reversal from the modest profit of $137,000 achieved in FY2024.
Financial Highlights and Shareholder Impact
Despite the disappointing earnings, Merino & Co. saw a slight increase in net tangible assets per ordinary security, rising from 7.18 cents to 7.47 cents. However, the company did not declare or pay any dividends during the year, reflecting the financial strain it is currently under. The loss signals operational challenges that may have affected sales, margins, or both, though the announcement does not provide detailed explanations.
Audit and Governance
On a positive note, the company’s financial statements received an unmodified audit opinion, indicating that the accounts fairly represent the company’s financial position without qualification. This provides some reassurance to investors regarding the integrity of the reported figures despite the adverse results.
Looking Ahead
The attached Annual Report is expected to shed more light on the factors behind the revenue decline and losses, including market conditions, cost pressures, or strategic missteps. Investors will be keen to see management’s plans for recovery and whether the company can stabilize its operations and return to profitability in the coming year.
Bottom Line?
Merino & Co.’s FY2025 results underscore urgent challenges ahead as it seeks to reverse its financial decline.
Questions in the middle?
- What specific factors drove the 36% revenue decline in FY2025?
- How does management plan to address the significant loss and restore profitability?
- Will Merino & Co. consider dividend payments once financial performance improves?
