McPherson’s Limited reported a 6.7% revenue decline to $66 million in 1H26, yet underlying EBITDA grew 10.6% to $2.2 million, reflecting cost savings from a new operating model. Core brands Manicare and Swisspers showed resilience, while Dr LeWinn’s and Fusion Health faced setbacks, including a $1.9 million impairment on Fusion Health.
- Revenue down 6.7% to $66 million in 1H26
- Underlying EBITDA up 10.6% to $2.2 million despite revenue pressures
- Strong growth in Manicare (+6.7%) and Swisspers (+11.7%) brands
- Fusion Health impaired by $1.9 million due to underperformance
- Company announces $2 million on-market share buyback and new Sydney HQ lease
Mixed Financial Performance Amid Strategic Transition
McPherson’s Limited, a stalwart in Australia’s health and beauty sector, has released its half-year results for the period ending December 2025, revealing a nuanced picture of operational challenges and strategic progress. Revenue from continuing operations declined by 6.7% to $66 million, reflecting a period of adjustment as the company embeds a new operating model aimed at long-term efficiency and growth.
Despite the top-line pressure, McPherson’s underlying EBITDA rose 10.6% to $2.2 million, underscoring the cost benefits realised from warehouse closures, logistics optimisation, and overhead reductions. This improvement in earnings before interest, tax, depreciation and amortisation highlights the company’s focus on operational discipline amid a complex market environment.
Core Brands Show Resilience, Offset by Transitional Setbacks
The company’s flagship brands Manicare and Swisspers delivered robust performances, with sales growth of 6.7% and 11.7% respectively. These gains were driven by strong pharmacy and grocery channel presence, disciplined promotional strategies, and new product development, particularly within Manicare’s GLAM range.
Conversely, Dr LeWinn’s and Fusion Health struggled during the half, impacted by supply chain disruptions, packaging delays, and execution challenges. Dr LeWinn’s sales fell 21.6%, hindered by out-of-stock issues and international distributor difficulties, notably in China. Fusion Health’s revenue declined 11.8%, prompting a $1.9 million non-cash impairment charge as management recalibrated growth expectations.
Strategic Actions and Future Outlook
McPherson’s is actively addressing these brand-specific challenges, restoring stock availability for Dr LeWinn’s and pursuing expanded distribution and improved in-store execution for Fusion Health. The company’s portfolio rationalisation continues, with supporting brands seeing a 50.5% revenue decline as investment focuses on core household names.
Financially, McPherson’s strengthened its balance sheet with net cash rising to $12.6 million, supported by positive operating cash flow and a new $16.2 million three-year debt facility with HSBC. The company also announced an on-market share buyback program of up to $2 million, signalling confidence in its underlying value despite ongoing losses and no interim dividend declared.
Navigating Regulatory and Operational Headwinds
On the regulatory front, McPherson’s continues to defend ASIC civil proceedings related to past executive conduct, with the outcome and timing still uncertain. Meanwhile, the company is relocating its corporate headquarters to a new Sydney office, reflecting its evolving operating model and strategic repositioning.
Overall, McPherson’s 1H26 results reflect a company in transition; balancing short-term revenue pressures and brand-specific hurdles against structural cost savings and strategic initiatives designed to unlock sustainable growth and shareholder value.
Bottom Line?
McPherson’s is stabilising its new operating model and core brands, but investors will watch closely for recovery in underperforming segments and regulatory outcomes.
Questions in the middle?
- How quickly can Dr LeWinn’s and Fusion Health return to growth trajectories?
- What impact will ASIC proceedings have on McPherson’s governance and market confidence?
- Will the new operating model deliver the full $4.5–5 million annualised EBIT benefit as planned?