Anagenics Limited reports a significant turnaround with profitable trading in the second quarter of FY26, driven by strong brand performance and a successful capital raise. The company is poised for growth with expanding product lines and international ambitions.
- Profitable trading achieved in 2Q26, expected to continue through FY26
- Operating cash outflows halved compared to prior year
- BLC Cosmetics profitable post-restructure, exploring new products
- York Street Brands’ Bouf Haircare on track to exceed $9 million sales
- Completed $2.25 million capital raise to fund expansion and debt retirement
Improved Operating Performance Signals Turning Point
Anagenics Limited (ASX, AN1) has delivered a markedly improved operating performance in the quarter ended 31 December 2025, reporting profitable trading for the first time in recent periods. The company’s operating cash outflows for the half-year have halved compared to the previous corresponding period, reflecting tighter cost control and the benefits of recent restructuring efforts.
Operating cash outflows stood at $0.3 million for the quarter and $0.6 million for the six months to December, compared to $1.2 million in the first half of FY25. While some negative cash flow was driven by the resolution of outstanding creditors, this is expected to subside in the second half of FY26, potentially easing cash pressures further.
Brand Momentum, BLC Cosmetics and York Street Brands
The company’s wholly owned subsidiary, BLC Cosmetics, has emerged from restructuring as a profitable entity and is actively exploring additional product lines to broaden its portfolio. This signals a renewed focus on growth and market relevance in the competitive cosmetics sector.
Meanwhile, York Street Brands’ Bouf Haircare, launched in May 2025 and developed using Anagenics’ proprietary technology, continues to gain traction. The brand is on course to surpass $9 million in sales within its first year, buoyed by growing brand ambassadors and consumer interest. Royalty revenues from Bouf Haircare reached $296,000 in the quarter, with total revenue of $499,000 for the first half of FY26. The company is also evaluating international expansion opportunities, which could further enhance royalty income streams.
Capital Raising to Fuel Growth and Strengthen Balance Sheet
To support its growth ambitions and improve financial flexibility, Anagenics secured firm commitments to raise $2.25 million through a placement of approximately 489 million new shares at $0.0046 each. The capital raising is structured in two tranches, with the first tranche completed in December 2025 and the second tranche pending shareholder approval.
Funds raised will be allocated towards expanding existing brands, pursuing complementary business opportunities, retiring debt, and bolstering working capital. This capital injection comes at a critical juncture, providing the company with a runway to execute its strategic plans amid ongoing market challenges.
Managing Debt and Cash Flow
Anagenics currently holds nearly $2 million in loan facilities, including unsecured loans from key stakeholders and a secured facility tied to its subsidiary BLC Cosmetics’ current assets and debtors. Interest rates on these loans range around 10%, with some interest-free arrangements in place until mid-2026 or until the capital raising is completed.
Despite improved cash flow, the company ended the quarter with $294,000 in cash and available financing facilities of $1.12 million, providing an estimated funding runway of just over four quarters based on current operating cash outflows. This liquidity position will be closely watched by investors as the company transitions to sustained profitability.
Outlook and Market Implications
Anagenics’ improved operating metrics and strategic capital raise position it well for growth in the health, beauty, and wellness sector. The success of Bouf Haircare and the revitalisation of BLC Cosmetics underscore the company’s ability to leverage proprietary technology and brand development to drive shareholder value.
However, the company’s future performance will hinge on its ability to maintain profitable trading, successfully execute international expansion plans, and manage its debt obligations prudently. The upcoming shareholder meeting to approve the second tranche of the capital raise will be a key event to watch.
Bottom Line?
Anagenics’ profitable turnaround and capital raise set the stage for growth, but execution risks remain as it seeks to scale its brands and manage debt.
Questions in the middle?
- Will Anagenics sustain profitable trading throughout FY26 and beyond?
- How will international expansion impact Bouf Haircare’s revenue and royalties?
- What are the risks if shareholder approval for the second tranche of capital raising is delayed or denied?