McPherson's (ASX:MCP) has downgraded its earnings guidance for the 2026 financial year, citing sluggish sales and rising supply chain costs.
In a trading update, the health and beauty supplier walked back its previous forecast of moderate growth, now stating it no longer expects a year-on-year increase in underlying EBITDA.
The company attributed the revised outlook to sales volumes falling short of internal targets as it continues to bed down a new operating model.
McPherson's noted that macroeconomic pressures have forced several suppliers to introduce surcharges to cover their own rising costs.
Despite the downgrade, management remains optimistic about a stronger second half and confirmed that the company’s share buyback programme will continue, supported by a robust balance sheet and a net cash position.
At the time of reporting, McPherson's share price was $0.15.