Announcement PDF Corporate Directory Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 1 FY26 Annual Report Pure Foods Tasmania Limited (ASX:PFT) (ABN 13 112 682 158) & Controlled Entities Annual Report for the financial year ended 30 June 2026 Corporate Directory Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 2 Contents Corporate Directory.................................................................................................................4 Who is Pure Foods Tasmania?................................................................................................5 Executive Chairman’s Report..................................................................................................6 Managing Director / CEO Report............................................................................................9 Auditor's Independence Declaration...................................................................................14 FY2026 Statutory Financial Report.......................................................................................15 Remuneration Report............................................................................................................19 Statement of Profit or Loss and Other Comprehensive Income......................................22 Statement of Financial Position ...........................................................................................23 Statement of Changes in Equity 2025..................................................................................24 Statement of Changes in Equity 2026..................................................................................24 Statement of Cash Flows.......................................................................................................25 Notes to the Financial Statements for the financial year ended 30 June 2026..............26 Note 1. Material Accounting Policy Information........................................................................26 Note 2. Operating Segments ................................................................................................33 Note 3. Critical Accounting Judgements, Estimates and Assumptions ...........................34 Note 4. Revenue.....................................................................................................................36 Note 5. Income Tax Expense.................................................................................................37 Note 6. Current Assets - Cash and Cash Equivalents.........................................................39 Note 7. Current Assets - Trade and Other Receivables.....................................................39 Note 8. Current Assets - Inventories ...................................................................................41 Note 9. Current Assets - Other Assets.................................................................................41 Note 10. Non-current Assets - Property, Plant and Equipment .......................................41 Corporate Directory Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 3 Note 11. Non-current Assets - Right-of-Use Assets............................................................43 Note 12. Non-current Assets - Intangibles..........................................................................44 Note 13. Non-current Assets - Deferred Tax ......................................................................44 Note 14. Current Liabilities - Trade and Other Payables ..................................................45 Note 15. Current Liabilities – Borrowings ...........................................................................45 Note 16. Current Liabilities - Lease Liabilities ....................................................................46 Note 17. Current Liabilities - Provisions..............................................................................46 Note 18. Non-current Liabilities - Lease Liabilities............................................................47 Note 19. Non-current Liabilities - Deferred Tax Liability ..................................................48 Note 20. Equity - Issued Capital............................................................................................48 Note 21. Financial Risk Management ..................................................................................49 Note 22. Capital Management..............................................................................................52 Note 23. Interests in Subsidiaries ........................................................................................52 Note 24. Contingent Liabilities and Assets .........................................................................52 Note 25. Events after the reporting period ........................................................................53 Note 26. Related party transactions....................................................................................53 Note 27. Auditor's Remuneration........................................................................................54 Note 28. Parent Entity Note..................................................................................................54 Note 29. Earnings Per Share .................................................................................................54 Consolidated Entity Disclosure Statement .........................................................................55 Directors' Declaration ...........................................................................................................56 Independent Auditor’s Report..............................................................................................57 Shareholder Information ......................................................................................................62 Corporate Directory Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 4 Corporate Directory Registered Office Level 2, 179 Murray Street Hobart, Tasmania 7000 Australia Postal Address 100-104 Mornington Road Mornington, Tasmania 7018 Australia Corporate Office 100-104 Mornington Road Mornington, Tasmania 7018 Tel: +61 (3) 6231 4233 Bankers Commonwealth Bank of Australia Share Registry Automic Registry Services Level 2, 267 St Georges Terrace Perth, Western Australia 6000 Australia Stock Exchange Listing Pure Foods Tasmania Limited is listed on the Australian Securities Exchange, code PFT. Auditor Wise Lord & Ferguson 160 Collins Street Hobart, Tasmania 7000 Australia Solicitors Page Seager 2/179 Murray Street Hobart, Tasmania 7000 Australia Accountant & Tax Advisor BDO Australia 8/85 Macquarie Street Hobart, TAS, 7000 Australia Board of Directors Malcolm McAully Chairman and Non-Executive Director Robert Knight Managing Director and CEO * Ken Fleming Non-Executive Director Justin Hill Company Secretary ** Ashlee Lambert Company Secretary * * Commenced 1 July 2026. ** Resigned 1 July 2026 purefoodstas.com Who is Pure Foods Tasmania? Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 5 Who is Pure Foods Tasmania? Pure Foods Tasmania Limited (PFT) was formed in 2015 with the aim to enhance and promote Tasmania’s food and beverage businesses. PFT’s strategy is to develop new products within its existing brands, acquire complementary brands and businesses, and increase its market penetration and distribution for its suite of brands and products globally. PFT’s portfolio of brands and businesses includes Woodbridge Smokehouse, Tasmanian Pâté, Homestead Pâté, Daly Potato Co., The Cashew Creamery, Elato and Brilliant Food Australia. . Strategy PFT’s growth strategy encompasses several key themes: • Organically grow its existing brands; • Improve margins and capacity of its production as products and brands reach scale; • Secure key assets; and • Grow via the acquisition of complementary and scalable products, brands and businesses to exploit product expansion opportunities. PFT brands are targeted at consumers seeking quality and convenient food products, with Tasmanian provenance remaining a distinguishing feature of the Group’s established portfolio. Organic growth will be pursued through increased penetration of existing markets, entry into new markets and new product development. Executive Chairman’s Report Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 6 Executive Chairman’s Report Overview FY26 demonstrated further progress in the Company’s efforts to build a larger and more efficient food manufacturing and distribution platform. This momentum reflects the benefit of several commercial initiatives undertaken during FY26. These included expanding the Company’s retail footprint, implementing targeted sales programs, relaunching Daly Potato and Gravy, and the early benefits from the acquisitions of Elato and Brilliant Food Australia. The Company has continued to focus on building recurring sales across its existing customer base while creating new revenue opportunities through its expanded brand portfolio and manufacturing capabilities. We remain committed to our longer-term strategy of continuing to refine our operations, building sustainable profitability, and positioning the company for future growth. The Group reported a net loss after tax of $8.8m (2025: $2.8m) and experienced net cash outflows from operating activities amounting to $2.6m (2025: $1.7m). However, the results included ~$5m of non-cash expenses relating to tax accounting and depreciation/amortisation charges. The accounting treatment of certain items in FY26 was arguably conservative although the Board was of the view, as were its advisers, that following the appointment of Robert Knight to the role of Managing Director, it was appropriate to enter the new year with a stronger financial foundation. The Company also made two other senior appointments in FY26, appointing a new finance manager and an operations manager. In September 2026, we also appointed a new Head of Sales after a review of the Group’s sales performance in FY26. That review lead to the realisation that the Company can achieve a much stronger sales performance through direct control and management, rather than through external distributors. Funding Position At year end, PFT had $1.493m in unused financing facilities and total available funding of approximately $1.27m. The improved position provides the Company with greater flexibility as it continues to pursue sales growth, improve margins and progress opportunities across its brands and manufacturing operations. Outlook for FY27 PFT enters FY27 with stronger customer receipts, a reduced quarterly operating cash outflow and a broader portfolio of brands and commercial opportunities. The Company’s immediate priorities remain: • growing sales across existing and new retail channels; • improving gross margins and production efficiency; • increasing utilisation of the Mornington, Woodbridge and ice cream manufacturing operations; • continuing the integration and growth of Elato and Brilliant Food Australia; • selectively pursuing acquisition opportunities that are strategically aligned, financially disciplined and capable of enhancing shareholder value; and • maintaining disciplined management of costs, cash flow and working capital. PFT anticipates improved revenue and operational performance, with a continued emphasis on sustainability and cost alignment. While acquisition opportunities continue to be explored, the primary focus remains on strengthening the core business. Executive Chairman’s Report Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 7 Our People On the 25 May, PFT announced the appointment of Robert Knight as Chief Executive Officer and Managing Director, effective 1 July 2026. Robert is currently the Company’s largest shareholder and joined the business in June 2025, relocating from Melbourne back to his home state of Tasmania. Robert’s appointment reflects the Board’s confidence in both the progress being made and the opportunities ahead for PFT. During July, we were pleased to welcome Mrs Ashlee Lambert as PFT’s new Company Secretary. Ashlee is a legal practitioner admitted to the Supreme Court of Victoria and practised law in Victoria for more than five years. She brings extensive experience across legal, governance and regulatory compliance, together with a strong background in corporate administration. Ashlee will also be responsible for communications between the Company and the ASX in relation to Listing Rule matters. Strengthening Our Leadership Team An important part of the transformation of Pure Foods Tasmania has been strengthening our management team, bringing additional experience, operational discipline and commercial capability into the business. During FY26 and the early months of FY27, we made three important appointments across Finance, Operations and Sales, establishing a stronger leadership structure to support the Company's next phase of growth. Sunny Rong Finance Manager Sunny joined the business in February 2026, bringing valuable experience in financial management, reporting and analysis, including experience within Tasmania's food and aquaculture industries. Since joining PFT, Sunny has played an important role in improving our financial reporting, forecasting, cash flow management and visibility of business performance. Her focus on financial discipline, product costing and management information is helping establish a more data-driven approach to decision-making and greater financial accountability across the Group. Andrew McCann Head of Operations Andrew joined PFT in June 2026, bringing extensive experience in food manufacturing and operational management, having previously held roles with National Pies, Banjo's Bakery Café and Bakers Delight. Andrew has brought a renewed focus on operational efficiency, production planning, manufacturing processes and accountability across our Mornington facility. His experience in managing food manufacturing operations is particularly valuable as we work to improve productivity, maximise equipment utilisation and increase production volumes across our expanding portfolio. Steven Scott Head of Sales Steven joined PFT in September 2026, bringing considerable experience in the Australian food industry, including his previous role as Head of Commercial at National Pies, where he contributed to growing the business from approximately $20 million to $50 million in annual revenue over five years. His appointment forms part of our decision to bring sales management and retailer engagement in-house, providing greater ownership of our customer relationships and commercial performance. Steven will focus on strengthening our relationships with major retailers, expanding distribution, identifying new ranging opportunities and driving sales growth across the portfolio. Executive Chairman’s Report Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 8 Together, these appointments represent an important investment in the future of Pure Foods Tasmania. With experienced leadership across our three core functions of finance, operations and sales, we are establishing a more accountable, commercially focused and capable management team. I believe we now have the right leadership structure to execute our strategy, capitalise on the opportunities ahead and translate the substantial work undertaken over the past two years into sustainable financial performance. The team at PFT is fantastic, hardworking and dedicated to getting their tasks done as quickly and efficiently as possible – I thank them all for their loyalty. I would like to thank my fellow directors for their focus and continual effort in helping grow PFT into a successful company. On behalf of the Board Malcolm McAully Executive Chairman Pure Foods Tasmania Limited Date: 14 October 2026 “We now have the right leadership structure to execute our strategy, capitalise on the opportunities ahead” Managing Director / CEO Report Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 9 Managing Director / CEO Report Dear Shareholders, It is a privilege to address you for the first time as Chief Executive Officer and Managing Director of Pure Foods Tasmania Limited. My journey with Pure Foods Tasmania began as an investor, attracted by the quality of the Company's brands, its manufacturing capabilities and the considerable potential I saw in building a diversified Tasmanian food business. Since joining the Board in October 2024, and subsequently becoming more deeply involved in the operational and commercial management of the business, that conviction has only strengthened. On 1 July 2026, I formally assumed the role of Chief Executive Officer and Managing Director. As the Company's largest shareholder, I approach this responsibility with a strong sense of personal commitment and alignment with our shareholders. My focus is firmly on building a profitable, sustainable business capable of delivering long-term value. The past financial year has been one of substantial progress and transformation. Building on the restructuring initiatives commenced in FY25, we have continued to reshape Pure Foods Tasmania, strengthen our operational foundations, expand our product portfolio and develop new opportunities for growth. Building a Stronger Business Over the past two years, our primary objective has been to establish a more efficient, commercially focused and financially sustainable business. The consolidation of manufacturing operations into our Mornington facility has been an important part of this process, allowing us to simplify our operations, reduce duplication and improve the utilisation of our existing infrastructure. We have also continued investing in manufacturing capability, production efficiency and product development. A particularly significant milestone during FY26 was the recommissioning of our frozen dessert manufacturing infrastructure, including our ice cream stick production line. This investment provides an exciting opportunity to expand beyond our existing branded products into contract manufacturing, licensed products and new commercial partnerships. With the infrastructure now established, our focus is on increasing production volumes, improving manufacturing efficiencies and leveraging this capability to generate additional revenue and contribution to the Group. Throughout the year, we have also strengthened our operational leadership, improved management reporting and developed greater visibility across our sales and manufacturing activities. These improvements are creating a more disciplined and accountable operating 2 and providing management with better information to support commercial decision-making. Managing Director / CEO Report Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 10 A Growing Portfolio of Premium Food Brands One of the most encouraging developments during FY26 has been the continued evolution of our brand portfolio. The acquisitions of Elato and Brilliant Food Australia represent important strategic additions to the Group, complementing our existing businesses and broadening our exposure to premium frozen desserts and seafood products. Alongside our established brands, Tasmanian Pâté, Woodbridge Smokehouse, Daly Potato Co. and Cashew Creamery, Pure Foods Tasmania now has a diversified portfolio of differentiated food products spanning several categories and customer channels. Brilliant Food Australia has been a particularly pleasing addition. Its range of premium salmon and trout products provides a strong complement to Woodbridge Smokehouse, creating opportunities to leverage shared manufacturing expertise, customer relationships and distribution channels. The launch of Brilliant Food Australia products into Costco during the early months of FY27 is an encouraging example of how we can use our existing retail relationships to accelerate the growth of newly acquired brands. Our commitment to product quality was further recognised at the 2026 Royal Tasmanian Fine Food Awards, where products from Brilliant Food Australia and Woodbridge Smokehouse received six Gold awards. These results are a reflection of the exceptional products our teams are producing and reinforce our belief in the strength of Tasmania's reputation for premium food manufacturing. Across the broader portfolio, we have continued to invest in new product development, packaging improvements and retail ranging opportunities. Our relationships with Coles, Woolworths, Costco and independent retail partners remain valuable assets, and we see considerable potential to expand the distribution and performance of our existing products. As we move forward, our commercial emphasis will be on converting the strength of our brands and product quality into increased sales, improved margins and stronger returns from our manufacturing operations. . Managing Director / CEO Report Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 11 FY26 Financial Performance and Repositioning The Group reported a statutory net loss of approximately $8.8m for FY26. Importantly, this result included approximately $6.6m in non-cash accounting charges, primarily associated with the derecognition of deferred tax assets, goodwill impairment, and depreciation and amortisation. These adjustments formed part of a broader review of the Company's financial position and asset carrying values. While they had a significant impact on the statutory result, they did not represent equivalent cash expenditure during the year. In addition, FY26 included approximately $1.2m in non-recurring expenditure associated with the restructuring of the business, recommissioning of manufacturing capabilities and investment in product development and innovation. A portion of this expenditure relates to eligible research and development activities, for which the Company expects to receive a refundable tax offset from the Australian Government. Much of this expenditure reflects the deliberate investment and restructuring undertaken to reposition Pure Foods Tasmania for its next phase of growth. These initiatives have enabled us to address historical operational challenges, strengthen our manufacturing platform and establish a more efficient cost structure. The year also provided an opportunity to address legacy accounting matters, reassess asset carrying values and establish a more transparent financial baseline for the business. We believe that much of the significant restructuring and recommissioning expenditure is now behind us, positioning the Company to benefit from an improved operating cost base and greater utilisation of its manufacturing assets. As we enter FY27, our focus is shifting from restructuring and rebuilding towards growth, operational execution and sustainable profitability. We remain committed to disciplined cost management, improving gross margins, strengthening operating cash flow and ensuring that capital is allocated towards opportunities capable of delivering meaningful long-term shareholder returns. Investing in Our People and Leadership An important focus of mine since becoming more deeply involved in the business has been strengthening our leadership team and ensuring we have the right people, experience and capabilities to support our ambitions. During FY26 and the early months of FY27, we made three senior appointments: Sunny Rong as Finance Manager, Andrew McCann as Head of Operations, and Steven Scott as Head of Sales. Each brings valuable industry experience and specialist expertise to the business. Andrew has an extensive background in food manufacturing, including experience with National Pies, Banjo's and Bakers Delight, while Steven brings considerable commercial experience from the Australian food industry, including his involvement in the significant growth of National Pies. Sunny has strengthened our financial management capabilities, bringing greater rigour to reporting, forecasting and financial analysis. Collectively, these appointments have substantially enhanced the sophistication of our management processes and the way we operate. We now have greater financial visibility, more disciplined production planning, stronger commercial oversight and improved accountability across the business. Importantly, we are developing a leadership team capable of making informed decisions, identifying opportunities and driving performance across their respective areas. My philosophy is to surround myself with the best people we can attract, empower them to take ownership of their responsibilities and create an environment where their experience and expertise can contribute to the Company's success. As Pure Foods Tasmania continues to grow, having the right leadership and management structures in place will be increasingly important. We are moving towards a more professionally managed, data- driven and commercially focused organisation, while retaining the entrepreneurial mindset and agility that I believe are essential to our future success. Managing Director / CEO Report Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 12 I see the continued development of our people and leadership capabilities as one of the most important investments we can make. With a stronger management team now in place, I am increasingly confident in our ability to execute our strategy, capitalise on new opportunities and deliver sustainable growth for shareholders. Commercial Development and New Opportunities Beyond our existing portfolio, we have continued to actively pursue opportunities that leverage our manufacturing infrastructure, product development expertise and established relationships with major retailers. The recommissioning of our frozen manufacturing capabilities has opened the door to a range of new opportunities in licensed products, private label and contract manufacturing. We have been encouraged by the interest from established brands and prospective commercial partners, and see the potential to develop a meaningful additional revenue stream through greater utilisation of our existing infrastructure. We have also continued exploring export opportunities, particularly within premium seafood products, where Tasmania's reputation for quality and provenance provides a strong point of differentiation. Our approach remains commercially disciplined, with an emphasis on opportunities where we can deliver genuine product differentiation and attractive margins rather than competing solely on price. Strategic acquisitions remain an important component of our longer-term growth strategy. In addition to the two acquisitions successfully completed during FY26, Elato and Brilliant Food Australia, we evaluated approximately 20 further acquisition and strategic investment opportunities across a range of businesses and sectors. This level of activity reflects our proactive approach to identifying opportunities that can strengthen the Group's earnings base, expand our capabilities and create value for shareholders. We remain active in the market, engaging with business owners, advisers and potential partners to identify strategically complementary or financially accretive transactions. While we continue to see a strong pipeline of opportunities, our approach remains selective. Any potential transaction must demonstrate a compelling strategic rationale, appropriate financial returns and a clear pathway to creating sustainable shareholder value. We are focused on building a stronger and more diversified business, rather than pursuing growth for its own sake. Our Priorities for FY27 I see FY27 as a pivotal year for Pure Foods Tasmania. Having undertaken substantial work to restructure and strengthen the business, our focus is now on translating those improvements into measurable financial and commercial performance. We have five clear priorities for the year ahead. • First, sustainable profitability and positive operating cash flow. We will continue to focus on improving gross margins, controlling overheads, increasing manufacturing efficiency and managing working capital. Establishing a business that can consistently generate cash from its operations remains our most important financial objective. • Second, accelerating organic growth. We see significant opportunities within our existing brand portfolio, particularly through expanded distribution of Brilliant Food Australia, continued development of Woodbridge Smokehouse, improved retail execution across Daly Potato Co. and Tasmanian Pâté, and the growth of our frozen dessert brands. • Third, maximising our manufacturing platform. Our Mornington facility provides an established asset base with the potential to support greater production volumes. Improving utilisation, reducing downtime and developing contract manufacturing partnerships will be central to improving the economics of the business. • Fourth, developing new markets and partnerships. We will continue progressing opportunities across licensed frozen products, private label manufacturing, foodservice and selected export Managing Director / CEO Report Pure Foods Tasmania Limited ABN 13 112 682 158 | Annual Report for the financial year ending 30 June 2026 13 markets. Our objective is to create additional revenue streams that compleme