Merino & Co Secures $300K Domestic Order as Australian Wholesale Rebuild Gains Pace

By

Key Takeaways

Merino & Co (ASX: MNC) secures A$300,000 domestic purchase order from Australian distribution partner, marking continued progress in wholesale channel rebuild strategy.

  • Bhagwan Marine's core EBITDA margin expanded to 19% in 1H26 despite an 8.5% revenue decline to $116.9m
  • Operating cash flow surged 21% to $25.4m with free cash flow of $8.6m supporting a 0.5 cent fully franked interim dividend
  • Net financial debt fell to just $1.0m (1% of equity), providing balance sheet flexibility for acquisitions
  • Riverside Marine acquisition pending 24 March shareholder vote is forecast to add $63.3m revenue and $26.2m EBITDA at 41% margins
  • Pro forma combined EBITDA margin expected to lift from 18% to 24% with approximately 14% EPS accretion forecast for FY26

Merino & Co secures A$300,000 domestic order as Australian market rebuild gains traction

Merino & Co (ASX: MNC) has secured a A$300,000 purchase order from its Australian distribution partner, marking further progress in the company’s strategy to rebuild its domestic wholesale channel. The Merino & Co domestic order complements the wool products manufacturer’s international expansion initiatives and reflects continued execution of its broader distribution and brand realignment strategy.

The order forms part of Merino & Co’s ongoing efforts to strengthen its domestic wholesale footprint. The company has been progressively refining its product positioning, channel mix, and distribution approach within Australia to support disciplined growth and brand clarity, balancing domestic development with international growth opportunities.

Strategic context: why domestic matters

Merino & Co has been rebuilding its Australian wholesale presence whilst maintaining focus on international growth across markets including China, Japan, and North America. The company’s strategic priorities include:

  • Rebuilding domestic wholesale footprint through aligned distribution partners
  • Strengthening brand clarity and pursuing disciplined growth
  • Balancing domestic channel development with international expansion

For investors, a strengthened wholesale network can provide more stable and scalable revenue streams compared to purely direct-to-consumer models. The A$300,000 order demonstrates execution against stated channel strategy and signals improving partner relationships, though this represents one purchase order rather than a transformational shift in the business model.

What is a wholesale distribution channel?

Wholesale distribution involves selling products in bulk to retailers or distributors rather than direct to consumers. For manufacturers like Merino & Co (ASX: MNC), this approach expands market reach beyond direct sales channels whilst potentially improving cash flow predictability through larger volume orders.

Rebuilding wholesale channels matters because it reduces reliance on direct sales, provides access to established retail networks, and can generate more consistent order flow. In Merino & Co’s case, the domestic wholesale channel sits alongside the company’s own online store, duty free shops, airports, boutique shops, and tourism locations.

Management commentary

Fiona Yue, Managing Director

“This order supports our renewed focus on the domestic market and reflects the steady progress we are making in re-establishing distribution channels aligned with our long-term brand strategy.”

What comes next for Merino & Co

The company continues to balance domestic channel development with international growth opportunities as part of its broader execution plan. For investors tracking the Merino & Co domestic order trajectory, further purchase orders from Australian partners and international expansion updates will serve as key indicators of strategy execution.

The vertically integrated wool products company designs, manufactures, markets, and sells merino wool garments and accessories across multiple channels. Investors should monitor whether this order signals the start of recurring domestic wholesale activity or remains a one-off development within the company’s channel rebuild strategy.

Don’t Miss the Next Consumer Retail Breakout

Join 20,000+ investors receiving FREE breaking ASX news in their inbox within minutes of release, complete with in-depth analysis. Get ahead on consumer sector moves the moment they happen—click the “Free Alerts” button at StockWire X to start receiving real-time alerts today.

 

John Zadeh
By John Zadeh
Founder & CEO
John Zadeh is a seasoned small-cap investor and digital media entrepreneur with over 10 years of experience in Australian equity markets. As Founder and CEO of StockWire X, he leads the platform's mission to level the playing field by delivering real-time ASX announcement analysis and comprehensive investor education to retail and professional investors globally.
Learn More

Breaking ASX Alerts Direct to Your Inbox

Join +20,000 subscribers receiving alerts.

Join thousands of investors who rely on StockWire X for timely, accurate market intelligence.

About the Publisher