Xenitra Limited (ASX:XEN) has told shareholders today that it’s hauled in a positive Q4 FY26 operating cash flow, up to $800,000 AUD, as well as A$3.79 million in closing cash. This represents a $2.13M improvement compared to the third quarter, and a $2.46M hike compared to outflow in Q4 FY25, per the reporting.
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This is the “clearest evidence to date” that Xenitra has staged a strong turnaround, non-executive chairman Dr Anthony Noble declared Thursday.
“Customer receipts were lower as the company reduced its exposure to low-margin, working-capital-intensive trading, but product and operating payments reduced much more substantially,” he explained to XEN shareholders.
Xenitra closed the quarter with customer receipts reaching A$5.33M, down 32% quarter-on-quarter due to moderated legacy nutritionals trading. However, product manufacturing and operating payments dropped to A$3.75M – 56% below Q3 – reflecting improved cash conversion and a leaner business model.
Preliminary unaudited accounts recorded Q4 sales of ~A$5M with a gross margin of about 16%, driven higher-margin sales channels like the OPAL ecosystem.
“The strategic shift is now visible in both the cash flow and the gross-margin profile of the business,” Dr Noble said, referring to the three strategic pillars that Xenitra has been focusing on heading into FY27.
“Nutritionals remains an important scale and distribution pillar, but growth is increasingly being directed to OTC medicines and OPAL-tokenised sales, where we believe the margin and cash-return characteristics are stronger.
“The OPAL launch delivered rapid sales and distributor growth, while the Fukang acquisition created the platform for our OTC strategy to move into execution.”
Xenitra’s ongoing restructuring also reduced fixed infrastructure and non-core activities, aiming to deliver ~A$1M in annualised savings. The ASX-listed company now enters FY27 focused on disciplined execution, scaling its growth engines, and “converting strategic progress into sustainable growth.”
XEN has been selling at 0.3cps this morning.
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