Merino & Co. (ASX: MNC), a company involved in the production and distribution of apparel and textile goods, particularly focusing on high-quality merino products, has announced a significant turnaround in its financial performance for the fourth quarter of FY2026. The company reported a return to positive operating cash flow, recording net operating cash inflows of A$74,000 for the quarter ending 30 June 2026. This marks a notable improvement from the approximately A$389,000 in cash outflows experienced in the preceding March quarter. As of 30 June 2026, Merino & Co. held A$740,000 in cash reserves.
The positive cash flow was underpinned by strong cash receipts for the quarter, totalling A$910,000, contributing to A$2.027 million in receipts over the past 12 months. Key highlights driving this performance included the execution of an exclusive distribution agreement for the China market, which secured an initial A$1.1 million purchase order. Further contributions stemmed from robust airport retail performance and the successful delivery of domestic wholesale orders, indicating effective execution across various sales channels.
Looking ahead, the Board Chair, Steve Woolley, outlined the company’s strategic focus for FY2027 on “demand, conversion and fulfilment,” in that specific order. Mr. Woolley emphasised that converting contracted commitments into shareholder value will be achieved by building brand awareness, securing orders, and ensuring timely delivery. This strategic approach will be supported by diligent management of manufacturing capacity, working capital, and scheduling disciplines. Managing Director Fiona Yue added that the fourth quarter was fundamentally about “turning readiness into delivery,” reflecting the operational efforts that led to the positive results and set the stage for capital-light international growth.
