Australian Oilseeds Holdings Ltd (COOT)·Q3 2025 Earnings Summary

Executive Summary

• Q3 FY2025 revenue grew 49.8% year over year to A$9.4M, led by retail oils (+69.4% YoY to A$4.7M); however, the company reported a net loss of A$0.6M versus a small profit in the prior year, reflecting sales mix shifts and higher brand, insurance, professional and employee costs .
• Retail distribution expanded across Costco, Woolworths and Coles in Australia; management emphasized momentum and premium positioning, but margins compressed and finance expenses rose sharply in the quarter .
• Balance sheet actions: CEO-related entity converted ~A$5.0M of debt into 4,452,479 shares at USD $0.7241, and a PIPE investor converted USD $150,000 into 221,957 shares, improving equity and reducing debt obligations .
• Liquidity and covenants: after a covenant breach reported in December 2024, the company disclosed compliance with banking covenants as of March 31, 2025, but reiterated substantial doubt about going-concern absent additional funding; this remains a key stock narrative driver .
• Street coverage appears limited; S&P Global shows no consensus EPS/Revenue estimates for Q3 FY2025, increasing uncertainty around estimate-based “beat/miss” framing. Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

• Retail category strength: Retail oils revenue rose 69.4% YoY to A$4.7M, driven by expanded distribution and new SKUs; “expanded distribution network and broader product lineup drove results” .
• Channel/customer traction: Company secured supply contracts to Costco (15 stores), Woolworths (~1,050 stores), and Coles (~850 stores), materially lifting retail mix and validating the brand strategy .
• Capital structure improvement: A$5M debt-to-equity conversion by a CEO-controlled entity strengthened equity and reduced debt; management cited “long-term commitment” and “financial flexibility” .

What Went Wrong

• Margin compression: Gross profit fell YoY despite revenue growth (A$565.6k vs A$603.4k), reflecting higher materials, packaging, labor and insurance costs; finance expenses surged 190% YoY to A$471k .
• Net losses returned: Q3 posted A$0.63M net loss vs A$41k profit last year, with investments in brand/marketing and higher professional/employee costs cited as drivers .
• Concentration risk and funding dependence: Top five customers represented 87.9% of sales; management disclosed substantial doubt about going concern absent access to bank facilities, debentures, or an equity line of credit .

Financial Results

Core quarterly metrics (USD, S&P Global)

Values retrieved from S&P Global.*

Document-based comparison (AUD)

Segment revenue breakdown (AUD)

KPIs – Customer concentration (AUD, Q3 FY2025)

Guidance Changes

No explicit numerical guidance was provided in the Q3 FY2025 8-K press release or 10-Q .

Earnings Call Themes & Trends

(Note: No earnings-call transcript was available in filings.)

Management Commentary

• “We were pleased to deliver strong year-over-year growth in the third quarter, led by our retail category where our expanded distribution network and broader product lineup drove results.” — Gary Seaton, CEO .
• “The decision to convert a meaningful portion of debt to equity strengthens our balance sheet and enhances financial flexibility while also demonstrating the long-term commitment to the Company’s future.” — Gary Seaton, CEO .
• “Our retail oils business continued to deliver exceptional growth in the second quarter… momentum is strong, including a significant increase in demand from China.” — Gary Seaton, CEO .

Q&A Highlights

No Q3 FY2025 earnings call transcript was available in company filings; Q&A details are not accessible from primary sources [Search returned none].

Estimates Context

• S&P Global shows no consensus EPS or Revenue estimates for Q3 FY2025, indicating limited sell-side coverage; only actuals are available (Revenue ~$5.88M USD; EBITDA ~$(0.04)M USD). Values retrieved from S&P Global.*
• Given absent consensus, estimate revisions are unlikely to be a near-term stock driver versus liquidity/covenant and retail-mix narratives. Values retrieved from S&P Global.*

Key Takeaways for Investors

• Retail-driven growth is real: revenue +49.8% YoY and retail oils +69.4% YoY, supported by national distribution at major chains; growth is a positive mix shift but comes with higher packaging/marketing costs .
• Margins under pressure: gross profit declined YoY and finance expenses rose materially (+190.4% YoY), reflecting higher input and financing costs; watch cost discipline and pricing power .
• Liquidity/covenants are pivotal: covenant breach disclosed in Q-1, compliance regained by Q3; management still discloses going-concern uncertainty pending access to facilities, debentures, and ELOC registration—this remains the core risk .
• Capital structure improving: A$5M debt converted to equity plus PIPE conversion reduce leverage and bolster equity, a constructive step toward Nasdaq listing requirements and funding flexibility .
• Customer concentration risk rising: top-5 customers at 87.9% of sales heightens dependence risk and receivables exposure; contract stability and diversification are key monitoring items .
• Operational scale-up: plant expansion and retail penetration increase throughput but require working capital and raise exposure to materials/packaging cost swings and weather-linked feed market dynamics .
• Near-term trading lens: stock narrative likely driven by funding/covenant status updates, additional conversions/financings, and sustained retail sell-through; absence of Street estimates reduces headline “beat/miss” catalysts .

Footnote: Values retrieved from S&P Global.*