Bremworth (BRW) investor relations material

Executive summary

• Revenue increased 6% year-over-year to $44.7 million, driven by Elco Direct, but overall sales mix shifted to lower-margin products, impacting gross profit and margin.

• Gross profit fell 25% year-over-year to $6.7 million, with gross margin dropping to 15% from 21% due to under-recovery of fixed overheads and delays in plant reinstatement.

• Net loss after tax (GAAP) was $6.4 million, an improvement from a $8.1 million loss in the prior period; normalised loss after tax was $4.5 million.

• Cash and short-term deposits declined to $34.3 million from $42.2 million at June 2025, mainly due to operational outflows and capital expenditure.

• Strategic investments in plant reinstatement, synthetic carpets, and sales expansion have yet to yield expected volume or profitability improvements.

Financial highlights

• Revenue: $44.7 million (up 6% year-over-year).

• Gross profit: $6.7 million (down 25% year-over-year); gross margin 15%.

• EBITDA (normalised): $(3.3) million; EBIT (normalised): $(4.6) million.

• Net loss after tax (GAAP): $(6.4) million; normalised loss after tax: $(4.5) million.

• Net cash outflow from operations: $(1.9) million.

• Basic EPS (GAAP): (9.12) cents; normalised: (6.36) cents.

Outlook and guidance

• Not expected to be cash flow positive or profitable in the second half of FY26, a revision from previous guidance.

• Timeline for benefits from strategic investments remains uncertain, with risks to achieving targeted improvements.