OMG Group’s Q2 Sales Surge 63%, Driving First Positive Operating Cashflow

• First positive operating cashflow quarter with net inflows of $212k
• Q2 FY26 net sales up 63% year-on-year, H1 FY26 sales up 79%
• Blue Dinosaur Australia eCommerce sales surged 86% year-on-year
• New exclusive five-year wholesale agreement for premium Japanese matcha
• Expanded retail footprint including Metro Petroleum convenience stores

A Milestone Quarter for OMG Group

OMG Group Limited (ASX, OMG) has marked a significant turning point in its financial performance with the achievement of its first positive operating cashflow quarter in Q2 FY26. The company reported net operating cash inflows of $212,000, a notable milestone that underscores the success of its multi-brand, multi-channel growth strategy.

This positive cashflow was underpinned by robust sales growth, with net sales for the quarter rising 63% year-on-year and a remarkable 79% increase for the first half of FY26. The Blue Dinosaur brand, a core part of OMG’s portfolio, saw its Australian eCommerce sales jump 86% compared to the previous year, highlighting strong consumer demand and effective promotional execution.

Expanding Distribution and New Revenue Streams

OMG Group has continued to broaden its retail presence, securing new agreements that extend its reach into high-traffic convenience channels. A key development was the new ranging agreement with Metro Petroleum, which introduced Blue Dinosaur protein bars into approximately 300 stores nationwide, primarily across New South Wales. This complements existing partnerships with 7-Eleven, Quikstop, and Canteen One, reinforcing OMG’s foothold in the petrol and convenience retail segment.

In addition to expanding physical retail channels, OMG Group has launched a high-margin wholesale platform for premium Japanese matcha through a five-year exclusive supply and distribution agreement with SANDAI Group. This new channel not only diversifies OMG’s product offering but also taps into growing consumer interest in premium, health-focused beverages. The company secured its first wholesale purchase order for SANDAI matcha during the quarter without dedicated marketing spend, indicating strong organic demand.

Supply Chain Optimisation Fuels Growth

Operational improvements have played a crucial role in OMG’s positive cashflow achievement. The integration of Shiperoo as the company’s fulfilment and logistics partner introduced automated fulfilment hubs in Victoria and New South Wales, enabling same-day order processing and enhanced inventory management. This technology-driven supply chain upgrade has improved efficiency and scalability, supporting the company’s expanding retail footprint and growing eCommerce sales.

With a closing cash balance of $2.2 million as of 31 December 2025, OMG Group maintains strong liquidity to fund inventory, new product launches, and further wholesale opportunities. The company also executed new working capital facilities with OptiPay, providing additional financial flexibility.

Looking Ahead

CEO Alex Aleksic emphasised that the company is transitioning from investment and development phases into scalable, cash-generative growth. The focus remains on disciplined execution of its diversified distribution model, margin improvement, and leveraging new high-margin revenue streams like the premium matcha channel. With multiple catalysts in place and a strengthened balance sheet, OMG Group appears well positioned to sustain its growth momentum throughout FY26 and beyond.

Bottom Line?

OMG Group’s first positive cashflow quarter sets the stage for scaling growth, but execution risks remain as new channels mature.

Questions in the middle?

• Can OMG sustain its rapid sales growth and convert it into consistent profitability?
• How will the premium Japanese matcha channel impact overall margins and brand positioning?
• What are the risks and opportunities in expanding further into convenience and petrol retail channels?