OMG Group confirms first positive EBITDA as sales reach $1.92 million

First positive EBITDA confirmed

OMG Group Limited (ASX:OMG) has moved from a quarterly EBITDA loss to a small operating profit, confirming maiden positive EBITDA of approximately $61,500 for Q1 FY27. That compares with a loss of approximately $293,000 in the prior corresponding quarter and turns the preliminary result reported in the initial positive EBITDA update into a final management-account milestone.

The improvement came as net sales climbed approximately 59% year on year to $1.92 million, or about $710,000 higher than Q1 FY26. Sales were also up roughly 25% on the June quarter, while gross profit rose 62% to approximately $857,000 and gross margin reached about 45%, ahead of the 41% margin reported for FY26.

Growth arrived with lower marketing spend

OMG said the quarterly expansion was spread across its broader portfolio and sales channels rather than relying on a single growth driver. July was particularly strong, with net sales of approximately $738,000, up 120% on the prior year, following the company’s Blue Dinosaur brand refresh.

Advertising and marketing payments fell 52% to approximately $157,000 from $325,000 a year earlier. That combination of higher gross profit and lower marketing outlay is the clearest evidence in the filing of improving operating leverage, although one positive quarter does not establish sustained profitability.

Inventory investment keeps cash flow negative

The earnings result did not translate into positive operating cash flow. OMG reported a net operating cash outflow of approximately $847,000, including about $552,000 spent on inventory, packaging and supplier deposits. Management said those investments were directed towards rebuilding Blue Dinosaur stock, securing matcha at a fixed cost and preparing production for the PrOATein rollout; the company expects them to convert into revenue through FY27.

Cash receipts from customers reached approximately $1.94 million, up 66% year on year, while management calculated normalised operating outflow at approximately $295,000 after excluding the inventory and supplier investment. At 30 September, OMG held approximately $1.57 million in cash and had a further $413,000 of undrawn facilities, giving total available funding of approximately $1.98 million. The Appendix 4C calculation equates that position to 2.34 quarters of funding based on the reported operating cash outflow, though that measure will depend on inventory conversion and the pace of future sales.

New products and distribution channels raise the execution test

The quarter also involved a sizeable push into the next phase of growth. Blue Dinosaur was relaunched with refreshed packaging, a new ecommerce site and four Protein + Fibre bar flavours. Three new Oat Milk Goodness PrOATein products are scheduled for national rollout across Woolworths’ 943-store network during the first quarter of calendar 2027, taking the nationally stocked range to five products.

OMG has also begun commercial fulfilment of ceremonial-grade Japanese matcha and paid a deposit to secure 50,000 kilograms at a fixed cost under its supply arrangements. After quarter end, the full portfolio was approved for supply across the 148-member Leagues Clubs Australia network in New South Wales and Queensland, with sales expected to start in November.

Placement strengthens funding but adds a capital question

The company received approximately $1.32 million in placement proceeds during the quarter, after transaction costs of about $62,000. The approximately $1.5 million placement was cornerstoned by a $350,000 investment from Slades Beverages, which is set to become OMG’s oat milk manufacturing partner. The Slades Beverages placement was priced at $0.007 a share.

OMG subsequently raised approximately $122,000 through its Share Purchase Plan, with a further approximately $150,000 of director participation still subject to shareholder approval. The company also intends to seek approval for a 10-for-1 share consolidation. Those corporate actions sit alongside the operational challenge: the next quarterly reports will need to show whether new listings, larger inventories and expanded fulfilment can produce recurring sales and cash generation rather than simply a larger cost base.