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Gale Pacific Limited (ASX:GAP)

ALERT: Price-sensitive ASX Announcement for GAP
Current share price for GAP : $0.075 -0.016 (-17.58%)+
Announcement
Release
28 Oct 2025 9:24AM
Price at Release
$0.091
Full Release
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Summary
Gale Pacific Limited's Quarterly Activity Report and Appendix 4C for the quarter ending 30 September 2025 reflects a net cash outflow of $3.7 million, which aligns with the company's expectations due to seasonal trading patterns. The company reported total sales of $40.2 million, which were 4.5% lower than the previous year's first quarter, impacted by an inventory sell-in ahead of a new ERP platform implementation. GALE Pacific is executing a strategic reset of its U.S. operating model to counteract continuous elevated input costs and subdued demand due to tariffs. This includes workforce reductions and operational restructuring, projected to save approximately $3.1 million in FY26. The company anticipates normalizing the inventory impact in the upcoming quarter and continues to explore diversification options for its production footprint.
Key Points
  • Net cash used in operating activities was $3.7 million.
  • First quarter sales of $40.2 million, down 4.5% from last year.
  • U.S. operating model restructuring aims to save $3.1 million.
  • Seasonality affects cash flow with peak trading in ANZ approaching.
  • Inventory sell-in ahead of ERP launch impacted sales figures.
  • Strategic initiatives update expected at the Annual General Meeting in November 2025.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.