Jatcorp Issues Profit Warning On Revenue Declines, Impairments 

Credit: Jatcorp/LinkedIn.

Australian beverage powders business Jatcorp has issued a profit informing for nan 2025 fiscal twelvemonth owed to gross declines and impairments.

Sydney-headquartered Jatcorp said successful a banal speech filing coming (11 July) it expects to book a nett nonaccomplishment of A$7.6m to A$8m ($5m to $5.2m) for nan 12 months to nan extremity of June.  

That is based connected an anticipated second-half nonaccomplishment of A$1.5m to A$1.9m, connected apical of nan A$6.1m nonaccomplishment registered successful nan first six months of nan fiscal year.

Revenue for nan twelvemonth is expected to diminution by astir A$39m, mostly owed to nan suspension of Neurio-branded merchandise income successful China.  

However, Moroka-branded products showed stronger-than-expected income successful Q3 and Q4, partially offsetting nan gross decline, nan group said.  

In fiscal 2024, gross from continuing operations stood astatine A$52.4m, while profit aft income taxation disbursal was A$1.6m.  

Jatcorp said it is facing ineligible proceedings successful China, which person led to nan suspension of each Neurio merchandise sales.  

Consequently, Sunnya’s goodwill and waste and acquisition names person been impaired to nan tune of A$2,347,482 and A$225,633, respectively.  

A non-cash inventory impairment of astir A$1.4m was besides recognised, reflecting excess banal from nan suspended Neurio operations, Jatcorp added. 

Jatcorp’s ineligible and master fees decreased by astir A$1m compared to nan erstwhile twelvemonth but remained precocious astatine A$4.1m.  

The institution said successful April that Sunnya had secured a triumph successful nan New South Wales Court of Appeal against erstwhile board Yinghan He, Yanxia Lu, and associated entities, including Guangzhou Niurui Trading Co., Guangzhou Aotea Biological Technology, and supplier Easter Wu’s Supermega Group.  

The tribunal confirmed nan defendants’ breach of duties by attempting to misappropriate Sunnya’s Neurio trademarks and undermining its China marketplace done rival brands.  

Despite nan challenges, Jatcorp said coming it “remains focused connected nan execution of its strategical maturation agenda” and is “cautiously optimistic” astir nan outlook for FY2026. 

Due to the operational restructuring efforts undertaken successful FY2025, guidance expects “improved performance” successful nan twelvemonth ahead, supported by a “sharpened attraction connected marque development, distribution description , and separator recovery”. 

In February, Jatcorp signed a income inducement statement pinch retailer H&S International to boost Moroka marque income successful Mainland China.  

Jatcorp said H&S has “reaffirmed its commitment” to achieving nan contracted income target of A$11m for FY2026.