McPherson’s, the owner of Dr LeWinn’s, Manicare and Swisspers, has stunned investors with a fresh profit warning and a looming $20m asset hit for 2026. The health and beauty supplier’s new operating model has underperformed and the guidance shock wiped about 10% off its share price to 14c.
The Melbourne-founded group, which dates back to 1860, told the ASX it expects revenue from continuing operations of $115m to $120m in fiscal 2026, down from $139m in 2025. Underlying earnings are forecast to slump to between $4m and $4.5m, roughly half the prior year, as it books non-cash impairments estimated at $15m to $20m.
Those writedowns are likely to push the company into a significant statutory loss. Net cash has slid to $4.5m at June 30 from $8.8m a year earlier, a decline that includes around $800,000 spent on a share buyback.
Operational missteps have compounded the financial pressure. The new operating model has introduced volatile forecasts as customers shift ordering patterns, while retailers have trimmed shelf space, reducing in-store availability for several brands.
Out-of-stocks, largely resolved by early in the second half, still limited the group’s ability to participate in key promotional programmes. Analysts see the combination of weaker demand visibility, range cuts and missed marketing windows as a drag on both revenue and margins.
The chief executive is due before the Downing Centre Local Court in Sydney next month on a charge of providing false or misleading information to the corporate watchdog. The case involves a start-up called Irexchange and relates to alleged conduct between 2018 and 2019, including an agreement involving founder shares and disclosures in a prospectus lodged with the regulator.
Two other senior figures from Irexchange also face similar charges, including one former chief financial officer. McPherson’s appointed its current chief executive in 2023 and the group is chaired by a veteran industrial and retail leader.
McPherson’s shares have collapsed 87% since 2021, leaving the company with a market value of about $20m and a long history of strategic pivots. The group has cycled through diverse businesses, from printing phone directories to selling tableware brands Wiltshire and Stanley Rogers, before consolidating around health and beauty.
In 2021, packaging investor Kin Group and a rival pharmaceutical-backed bidder each explored takeovers at $1.34 and $1.60 a share respectively, valuing McPherson’s at up to $172m at the time. Both offers ultimately lapsed.
