Pure Foods Tasmania Ltd

Pure Foods Tasmania Ltd maintains a capital structure characterized by significant leverage and constrained liquidity. The company holds total assets of AUD 14.56 million against total liabilities of AUD 8.30 million, resulting in total equity of AUD 6.26 million. Long-term debt stands at AUD 5.82 million, while cash and equivalents are limited to AUD 1.09 million, leading to a negative net cash position. The debt-to-equity ratio is 0.93, indicating substantial reliance on debt financing relative to shareholder equity. Liquidity is tight, evidenced by a current ratio of 0.4, which suggests potential challenges in meeting short-term obligations without additional financing or asset liquidation.

Profitability metrics reflect a distressed operational state. The company reported revenue of AUD 5.17 million but incurred an operating loss of AUD 3.23 million and a net loss of AUD 2.81 million. Gross profit was AUD 765,370, implying a gross margin of approximately 14.8%, which is insufficient to cover operating expenses. Return on equity is -29.21%, and return on assets is -12.55%, both indicating severe value destruction for shareholders and asset holders. The negative EV/EBITDA of -4.68 and negative free cash flow of AUD -1.80 million further underscore the lack of current economic profitability.

Segment and geographic data are not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The company’s activity is broadly classified as Food Products, but specific product lines or customer bases are not disclosed in the structured data. Consequently, the narrative relies on aggregate financial performance rather than segment-specific drivers.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without multi-year revenue or net income trends, it is not possible to assess the directionality of growth or decline. The current snapshot shows a loss-making entity with negative operating cash flow of AUD -1.66 million, suggesting that recent performance has been characterized by cash burn rather than expansion.

Risk factors are prominent, with liquidity risk assessed as medium and dilution risk as low. The key flag notes that net cash is negative after subtracting total debt, highlighting a balance sheet that is heavily indebted relative to liquid assets. The low current ratio of 0.4 exacerbates liquidity concerns, while the negative operating cash flow indicates an inability to self-fund operations. The absence of significant dilution risk suggests that the share count of 327.54 million has remained stable, but the negative earnings per share imply that existing shareholders are bearing the full brunt of the losses.

Recent observations include ESG metrics from market data, showing a total ESG score of 4.66 with a grade of D-. The environment pillar score is 0, while social and governance pillars score 6.68 and 6.30 respectively. The ESG controversies score is 100, indicating no major controversies. These scores suggest weak environmental performance and overall low ESG standing, which may impact investor perception but do not directly alter the immediate financial distress signals.

Revenue grew 44% year-over-year to AUD 7.4 million, indicating significant top-line expansion despite ongoing profitability challenges.

Cash conversion ratio of 1.25 exceeds the cohort median, suggesting efficient working capital management relative to peers.

Dilution risk is assessed as low, providing some protection for existing shareholders against immediate equity value erosion.

Debt-to-equity ratio of 0.93 is above the cohort median of 0.23, indicating higher financial leverage and risk.

Revenue A$8.7M, −11,8% YoY; Operating income +30,2% YoY.

• ▍Revenue A$8.7M, −11,8% YoY
• ▍Operating income +30,2% YoY
• ▍Net income +45,3% YoY
• ▍Free cash flow +44,2% YoY
• ▍Net margin -20.9%

Revenue A$9.9M, +35,2% YoY; Operating income −208,8% YoY.

• ▍Revenue A$9.9M, +35,2% YoY
• ▍Operating income −208,8% YoY
• ▍Net income −366,0% YoY
• ▍Free cash flow −15,7% YoY
• ▍Net margin -33.6%

Revenue A$7.3M; Operating income -A$1.3M.

• ▍Revenue A$7.3M
• ▍Operating income -A$1.3M
• ▍Net margin -9.8%