Nutritional Growth Solutions Ltd (ASX: NGS), a company that develops, produces, and sells clinically tested protein supplements for children, today announced its Appendix 4D for the half year ended 30 June 2026. The company, which commercialises intellectual property generated from years of medical research into pediatric nutrition, reported a net profit after tax of US$120,000 for the period. This marks a significant turnaround from the US$1.178 million loss recorded in the prior corresponding period (pcp), despite a revenue decrease of 18.57% to US$706,000 from US$867,000 in H1 FY25. The improved financial result is attributed to continued cost discipline and working capital optimisation.
Operationally, the half-year saw several key achievements. Nutritional Growth Solutions successfully resolved historical stock availability issues, fully replenishing inventory, and launched an upgraded e-commerce website to enhance customer experience. Crucially, the company achieved a debt-free balance sheet by 30 June 2026, having repaid and closed all legacy financing facilities, thereby eliminating ongoing debt-servicing obligations. Furthermore, on 25 May 2026, NGS entered into a binding Share Sale Agreement to acquire 100% of Sprout Organic Pty Ltd for an upfront consideration of approximately A$8 million, to be satisfied by the issue of NGS shares at a deemed price of A$0.02. Shareholders approved this transformational acquisition at the Annual General Meeting on 10 August 2026, with completion anticipated around 1 September 2026.
Supporting these strategic initiatives, Nutritional Growth Solutions secured firm commitments for an A$2.5 million placement, issuing 125,000,000 shares at A$0.02 each to fund working capital, inventory expansion, sales and marketing, and integration costs. This placement received shareholder approval and has since settled. The net tangible assets per security also shifted positively to 0.036 cents from a negative 0.016 cents in the pcp. While the company’s financial statements note an accumulated deficit of US$20,588 thousand since inception and negative operating cash flows of US$100 thousand for the half year, indicating a material uncertainty regarding going concern, management is actively addressing this through additional fundraising, revenue growth, and further cost reduction initiatives.
