Australian Oilseeds Holdings Reports Increased Revenue but Significant Operating Loss for December 2024 Quarter

Australian Oilseeds Holdings Ltd. reported its financial results for the quarter ending December 31, 2024, revealing a sales revenue of AUD 10.4 million, a 4.5% increase from AUD 9.95 million in the same period last year. However, the company experienced a significant operating loss of AUD 320,332, compared to a profit of AUD 970,388 in the previous year. The gross profit for the quarter was AUD 1.2 million, down 34.6% from AUD 1.84 million, primarily due to increased costs of sales, which rose by 13.4% to AUD 9.2 million.

The financial performance reflects a challenging operational environment, with general and administrative expenses surging by 86.1% to AUD 1.14 million, driven by higher professional fees and insurance costs. Selling and marketing expenses decreased by 54.3% to AUD 85,189, indicating a strategic shift in expenditure. The company’s net current liabilities increased to AUD 8.39 million as of December 31, 2024, compared to AUD 6.97 million at the end of June 2024, raising concerns about its liquidity position.

In terms of strategic developments, Australian Oilseeds completed a business combination with EDOC Acquisition Corp on March 21, 2024, which has positioned the company for growth in the sustainable edible oils market. The merger has allowed the company to expand its customer base, securing contracts with major retailers such as Costco and Woolworths, which contributed to the increase in retail oil sales. The company also launched new product lines aimed at retail consumers, which are expected to enhance market penetration.

Operationally, the company reported a cash balance of AUD 1.44 million as of December 31, 2024, up from AUD 514,140 at the end of June 2024. This increase was attributed to financing activities, including loans from related parties and secured borrowings. However, the company’s ability to continue as a going concern is contingent upon generating sufficient cash flow from operations and securing additional financing, as it faces substantial liabilities and ongoing operational costs.

Looking ahead, Australian Oilseeds Holdings Ltd. aims to leverage its recent business combination and expanded product offerings to improve profitability. The company is exploring additional funding options, including a potential equity line of credit, to support its growth initiatives and operational stability. The management remains focused on enhancing operational efficiencies and expanding its market share in the sustainable oils sector, despite the current financial challenges.