MicroSalt has delivered the sort of update growth investors want to see: revenue moved up sharply, losses narrowed, and the commercial story looks much more real than it did a year ago. This is no longer just a clever low-sodium salt idea with a good health pitch – it is starting to show evidence of repeat orders, multinational customer traction and a clearer route to scale.
That said, this is still a small AIM company with funding risk, customer concentration and a formal going concern warning in the accounts. So the headline is positive, but it is not risk-free. Far from it.
MicroSalt FY25 results: revenue jumped, gross profit turned positive and cash improved
The standout number is revenue of US$2.069 million for FY25, up from US$0.750 million in FY24. In plain English, that is close to tripling. The big driver was higher B2B sales – business-to-business bulk ingredient sales to food manufacturers – which now make up 89% of the mix.
Just as importantly, the company moved from a gross loss to a gross profit. Gross profit was US$87,000 versus a gross loss of US$438,000 a year earlier, which shows the model is improving as volume comes through, even if margins are still thin at this stage.
| Key FY25 numbers | FY25 | FY24 |
|---|---|---|
| Revenue | US$2.069 million | US$0.750 million |
| Gross profit/(loss) | US$87,000 | (US$438,000) |
| Operating loss | (US$3.227 million) | (US$5.848 million) |
| Loss for the year | (US$3.494 million) | (US$6.131 million) |
| Cash | US$1.908 million | US$261,000 |
| Borrowings | US$2.871 million | US$2.746 million |
| Net assets/(liabilities) | US$215,000 | (US$1.549 million) |
One small accounting point worth noting: the company headline talks about net loss reducing to US$3.2 million, while the audited income statement shows an operating loss of US$3.227 million and a loss for the year of US$3.494 million. That is not a disaster, but retail investors should always follow the audited numbers first.
MicroSalt customer wins in North America are the real reason this RNS matters
The investment case here lives or dies on adoption by large food groups. On that front, FY25 looks encouraging.
MicroSalt says it received repeat purchase orders totalling US$1.16 million from Customer 1 in Mexico, plus US$189,000 from its Canadian business unit and US$191,000 from its US operations. It also secured repeat purchase orders totalling US$245,000 from the North American business unit of the same leading global beverage and snack food company.
That matters because repeat orders are far more valuable than one-off trials. They suggest the product is getting used in real production runs, not just lab tests and pilot programmes.
- A leading global beverage and snack food company is expected to support a broader North American rollout in late 2026.
- Projected volumes linked to that rollout are expected to grow to approximately US$2.6 million in 2026 and US$8 million in 2027.
- The world’s largest spice and seasoning company placed repeat orders totalling US$54,000 for its Canadian division.
- A 48-month JDA – joint development agreement – was signed with Customer 3, one of the world’s largest beverage and snack food companies.
- MicroSalt was selected for inclusion in two new frozen pizza products targeted for US retail launch in mid-2026.
The customer names are not disclosed, which is standard in ingredient supply deals, but the pattern is what counts. MicroSalt is moving deeper into large customer systems across Mexico, Canada, the US and now the UK. That is exactly what a scaling ingredient business needs to do.
MicroSalt 2026 guidance has been updated to US$4.5 million – slightly awkward, but not a red flag yet
There is a wrinkle in the story. Management updated FY26 sales guidance to US$4.5 million, saying this reflects the timing of production associated with a 2027 launch schedule rather than weaker demand.
That wording matters. When a company says guidance is changing because of timing, investors have to decide whether to shrug it off or treat it as the first sign of slippage. Right now, I would put this in the mildly annoying rather than alarming category.
Why? Because the rest of the update still sounds strong. Sales through April 2026 totalled US$1.0 million, up US$0.3 million on the same period in 2025, despite severe weather disruption in February. Q1 26 bulk sales reached a record US$710,000, and the company reaffirmed its 2027 sales estimate of US$15 million.
If those 2027 numbers land, today’s revenue base will look tiny. But until then, timing risk is real and investors should not just wave it away.
MicroSalt balance sheet and going concern warning: the biggest risk is still funding
The balance sheet is better than it was. Two equity fundraises during 2025 brought in US$5.6 million, cash rose to US$1.908 million, and net assets improved to US$215,000 from net liabilities of US$1.549 million.
That is the good news. The less comfortable bit is in the going concern note. Directors say the business has enough resources for at least 12 months, but they also state that a material uncertainty exists because cash flow forecasts depend on the timing of revenue from key customers.
That is not just boilerplate. It means if sales are delayed, MicroSalt may need more funding, either through fresh equity issuance or debt finance secured on receivables or inventory. For existing shareholders, that means dilution remains a live issue.
There is also US$2.871 million of convertible loan notes outstanding, carrying 10% annual interest, repayable in March 2027 and November 2027. That debt is owed to Tekcapital-related parties. It is manageable if growth keeps coming, but it is still debt, and debt matters when you are not yet profitable.
What retail investors should like – and what they should watch closely
What looks positive in the MicroSalt FY25 results
- Revenue growth is strong and clearly moving in the right direction.
- Gross profit has turned positive.
- Repeat orders from major multinational customers suggest commercial validation.
- Cash improved materially after fundraising.
- FY27 sales estimate of US$15 million implies substantial upside if execution holds.
What still looks risky in the MicroSalt investment case
- The business remains loss-making.
- Margins are still very slim at gross profit level.
- Customer concentration is high, with three customers making up at least 76% of revenue.
- The company has flagged a material uncertainty over going concern.
- Further equity raises are possible if revenue timing slips.
Bottom line on MicroSalt after these FY25 final results
This is a good set of results for a company at MicroSalt’s stage. The commercial traction looks more credible, the numbers are improving, and the product seems to be moving from promise to actual shelf-level adoption.
But this is still a small, early-stage growth share, not a finished business. The opportunity is attractive because the upside could be large if those customer rollouts scale. The risk is equally obvious: if those rollouts slip, shareholders may be asked to fund the gap.
My view is simple. The FY25 results make the bull case stronger, but they do not remove the financing risk. For retail investors, this is one to watch for continued order flow and proof that the US$4.5 million FY26 target is being delivered, not just talked about.
