Why did McPherson's (ASX:MCP) downgrade its FY26 earnings guidance?

McPherson’s lowered its outlook because sales volumes are currently tracking below previous expectations. The company is also facing increased operating pressure as suppliers implement surcharges to offset their own rising costs.

What are the specific changes to the McPherson’s (ASX:MCP) EBITDA forecast?

In February 2026, the company initially forecasted moderate year-on-year growth for FY26 underlying EBITDA. Following this update, McPherson’s no longer expects any growth compared to the previous financial year.

How do supply chain issues impact the McPherson’s Limited investment thesis?

Supply chain volatility is a primary headwind, as macroeconomic conditions have led suppliers to add various surcharges to mitigate their own costs.

Is the McPherson’s (ASX:MCP) share buy-back still active despite the downgrade?

Yes, McPherson’s confirmed it intends to proceed with the share buy-back program originally announced in February 2026. Management stated that this decision reflects their confidence in the company’s long-term strategy and prospects.

What is the current state of the McPherson’s Limited (ASX:MCP) balance sheet?

The company maintains a relatively defensive financial position, reporting a strong balance sheet and a net cash position. This liquidity provides a buffer against the current earnings volatility and supports the ongoing return of capital to shareholders via the buy-back.

What operational strategy is McPherson’s (ASX:MCP) using to improve performance?

Management is currently focused on "embedding" a new operating model designed to stabilise the business. Key priorities include optimising the supply chain and improving the availability of products in-store to drive sales.

What are the main bull and bear cases for McPherson's (ASX:MCP) stock?

The bull case rests on the company’s strong net cash position, the continuation of the share buy-back, and the expectation of a stronger second half. The bear case focuses on the lack of EBITDA growth, rising supplier surcharges, and the risk that sales volumes continue to miss internal targets.

McPherson's slashes earnings guidance as sales slump

Written by Heidi Cuthbert Published Apr. 23 2026Last Updated Apr. 23 2026

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.