Merino & Co. posts continued operating cash burn despite steady customer receipts

An announcement from Merino & Co Limited ( (AU:MNC) ) is now available.

Merino & Co. Limited reported customer receipts of A$442,000 for the March 2026 quarter and A$1.117 million for the year to date, but operating cash outflows driven by manufacturing, staff, leasing and corporate costs led to a quarterly operating cash burn of A$389,000 and A$1.705 million over nine months. Investing activity was minimal, with a small net inflow of A$12,000 in the quarter, while financing cash flows were negative due to A$128,000 in loan repayments, yet the company’s cash balance still decreased from A$1.168 million to A$1.168 million after these flows, underscoring ongoing reliance on existing cash reserves to fund operations amid continued negative operating cash flow.

The cash flow profile indicates Merino & Co. is still in a phase where its core business does not yet generate positive cash, which may pressure liquidity if the current burn rate persists without new funding or improved profitability. The modest investing and financing movements suggest a conservative capital approach, but continued repayment of borrowings alongside operating deficits could become a concern for creditors and shareholders if revenue growth or cost reductions do not materialise to rebalance cash generation.

More about Merino & Co Limited

Merino & Co. Limited operates in the wool and textiles sector, focusing on merino-based products and related value-added offerings. The company appears to generate revenue from product sales to customers rather than from financial income or government support, highlighting its reliance on core operating activities.

Average Trading Volume: 6,479

Technical Sentiment Signal: Sell

Current Market Cap: A$6.64M

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