How Is Jatcorp Navigating 36% Revenue Growth Amid Legal Battles?

Robust Revenue Growth and Margin Expansion

Jatcorp Limited has delivered a notable uplift in its half-year results for the period ending 31 December 2025, with revenues climbing 36% to $23 million. This growth was accompanied by a 48% increase in gross profit, lifting the margin to nearly 30%, signalling improved operational efficiency and stronger sales performance across its product portfolio.

Despite continuing to report a net loss of $1.82 million, this represents a 36% improvement compared to the prior corresponding period. The company’s EBITDA loss narrowed significantly to $1.7 million from $6 million a year earlier, reflecting tighter cost control and the absence of large impairment charges that weighed heavily on the previous period.

Strategic Market Expansion and Brand Growth

Jatcorp’s growth was driven by increased demand for its flagship brands, Neurio® and Moroka®, particularly in Australia, Hong Kong, and China. The company has broadened its distribution channels, notably signing an exclusive agreement with a local distributor in Vietnam, marking a strategic push into Southeast Asia. This expansion aligns with Jatcorp’s multi-channel approach, combining traditional retail and e-commerce platforms to capture diverse consumer segments.

The Moroka® brand’s rollout into approximately 150 mother and baby retail stores in China exemplifies Jatcorp’s efforts to diversify beyond e-commerce, enhancing its omnichannel presence and market visibility.

Manufacturing Capacity and OEM Opportunities

Investment in the ANMA manufacturing facility in Melbourne has been a key enabler of growth. The recent upgrade doubled production capacity and improved automation, positioning Jatcorp to capitalise on higher-margin original equipment manufacturing (OEM) contracts. The company has already commenced production for new OEM partners, such as BTNature, supporting revenue diversification and margin enhancement.

Legal Challenges and Governance Developments

Jatcorp continues to navigate legal disputes related to the Neurio® trademark in China, which has temporarily suspended online sales of Neurio® products in that market. While the company has secured favourable rulings against competitors infringing on its intellectual property, the ongoing proceedings inject uncertainty into its China operations.

On the governance front, the appointment of Mr Jack (Zhan) Wang as a Non-Executive Director brings continuity and experience to the board. Additionally, a $4.2 million entitlement offer completed post-period, fully underwritten by major shareholder HS Global E-Commerce (HK) Limited, has strengthened the company’s liquidity and deepened strategic alignment with its key investor.

Outlook and Risk Management

Looking ahead, Jatcorp is focused on sustaining momentum through continued market expansion, product innovation, and operational efficiency. The company emphasises risk mitigation strategies, including protecting intellectual property, diversifying product lines and markets, and securing talent to support growth ambitions. While legal uncertainties remain, Jatcorp’s strengthened balance sheet and strategic initiatives position it well to navigate the evolving landscape.